The document discusses the importance of a franchise proposal. It notes that a franchise proposal helps communicate the business objectives and idea to prospective franchisees. It allows franchisees to understand the target customer group and marketing plan. It also helps define the roles and duties of the franchisee as well as the day-to-day operations. The document provides an example franchise proposal, which outlines details like the proposing franchisee, location, terms, fees, and disclaimers. It emphasizes that a well-prepared franchise proposal is important to efficiently convey the franchise opportunity and ensure franchisee understanding and success.

1. FRANCHISE PROPOSAL SAMPLE.
Before setting up any franchise, it is necessary that the franchisee analyses
and finds a franchise that suits his area of interest and goes well with his
business aspirations. A franchisee would never want to invest his money in
any brand unless he is assured of a considerable amount of profit in the
future. A good number of big brands available in the market would want you to
invest your money into their brand.
To convince you to invest your money in their brand, the brands pitch their
ideas to you in the form of a proposal known as the FRANCHISE PROPOSAL
SAMPLE. It is a document that contains various features and advantages of
investing in their brand.
Your proposal must be appealing and should be able to highlight the key
benefits that the franchisee would receive on investing in your venture.
A business proposal is the first impression of your brand and it helps the
franchisee in assessing the true potential of your brand. Your proposal needs
to be up to the mark so that it can be successful in explaining why your
business offers an ideal opportunity to them and can help them flourish. It is
necessary to consult an expert who can help you put your ideas down on the
franchise proposal in an appealing manner.
The following points need to be taken care of while preparing a franchise
proposal:
• Briefly outline the nature and purpose of your business along with your
overall business objectives.
• Precisely describe the kind of product or service you are offering for
sale in the market
• To make the franchisee place a sense of trust in your brand, you must
mention the distinctive features of your products and services, and also
describe how market-flexible it is.
• A concise description of your product's sale state in the market and a
mention of the target sector and customer base for the sale of your
product.
• Present a track record of your success in the market to build the trust of
the franchisee so that he can have confidence in your brand.
• It is necessary to assure their support to reduce the feeling of comfort
that would help him place his sense of trust in your brand.
A franchise proposal helps the franchisee to have a better understanding of
how your franchise will perform in the market and it will consist of all the
financial projections.

2. IMPORTANCE OF A FRANCHISE PROPOSAL:
• BUSINESS IDEA- A franchise proposal is a well-set document that
helps you in easily communicating the objectives and idea of your
business to prospective franchisees.
• CUSTOMER BASE- A business plan helps you to let the franchisees
ascertain their target customer group which helps in the more efficient
functioning of the franchise.
• MARKETING PLAN- For any franchise taking up your brand name, it is
necessary to devise a business plan for them. It also provides them with
a description of marketing and sales during the training.
• MANAGEMENT ROLES- A franchisee must be aware of his key roles
and duties. If the role of the franchisee is pre-defined, he will be able to
assess the weak points and make arrangements for the same.
• DAILY OPERATIONS- To make the franchise a success, the day-to-day
working of the franchise must be on point and there should necessarily
be a mention of the effectiveness of the business procedure.

3. A franchise proposal sample is given below:
Date
Name
Street Address
City, State, and Zip Code
Dear Sir or Madam:
_________ (the “Proposed Franchisee”), presents the following Franchise
Proposal to
________ (the “Franchisor”), to summarize the general business structure,
experience, and qualifications of the Proposed Franchisee, and to outline the
terms and conditions governing the Franchise Proposal for the franchise
business sought by the Proposed Franchisee.
Proposed Franchisee: _______________.
Business Structure: The Proposed Franchisee is a ________, organized
under the laws of the
State of __________ in ______.
Controlling Principals: The Controlling Principals and management team of the
Proposed Franchisee have
extensive business experience and over _ years in the ________ business
segment.
The Controlling Principals are: ________________________
_______________________________.
The resumes of the Controlling Principals are attached hereto as Attachment
“A”.
Proposed Franchise Location: The Proposed Franchisee has found an ideal
location for the franchisee business
located at __________________. The proposed location is zoned
appropriately to operate the franchise business and possesses the following
location strengths:
_______________________________
_______________________________
_______________________________
_______________________________.
Protected Territory: In addition to the proposed location for the franchise
business, the Proposed Franchisee would also like the option to build
additional franchises in the next few years in the surrounding area. As part of
the proposed Franchise Agreement, we would request that the following
territory be protected for our exclusive use for the term of our Franchise
Agreement:
_____________________.
Proposed Term: ____ years.
Proposed Fees: ___________

4. ALL TERMS AND CONDITIONS CONTAINED HEREIN ARE PROPOSALS ONLY AND ARE
SUBJECT AT ALL TIMES TO THE TERMS AND CONDITIONS OF THE FRANCHISE DISCLOSURE
DOCUMENT, FRANCHISE AGREEMENT, AND ALL EXHIBITS AND ATTACHMENTS THERETO,
AND TO APPLICABLE
STATE AND FEDERAL FRANCHISE LAWS, RULES, AND REGULATIONS.
A franchise process flowchart is given below:
• Self- evaluation
• Hire a franchise consultant
• Completion of legal documents
• Attracting potential franchises
• Multi-unit development
• Formulation of marketing strategy
• Offer proper guidance to your franchises
Little do people realize the importance of a proper business plan. It is very
important to list down the tasks and procedures before starting any function as
this will be helpful in the efficient execution of the formulated business
strategy. A business proposal is way more than a mere legal contract. Apart
from defining the legal powers, rights, and duties of both the franchisee and
the franchisor, it defines the area and methods of operation of a franchise.