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Will a franchisor help me develop my business plan?
There’s no hard and fast rule, so before starting to draft a business plan a franchisee should check with its franchisor what support it can offer.
Some franchisors may not directly assist their franchisees with developing their business plans, but may have a specific business plan format its franchisees can use. If a franchisor is not able to directly assist a franchisee to develop a business plan, it may have information a franchisee can use to develop a business plan instead.
While some franchisors may assist franchisees in writing a business plan, a franchisee should be mindful of how a franchisee merges the franchise business’ identity with its own vision in the business plan.
Franchisees should also be aware that there are certain actions a franchisor cannot take. For example, it cannot help a franchisee compile projected earnings for inclusion in the business plan or approve a franchisee’s business plan.
Vicky Wilkes is a senior associate at law firm Squire Patton Boggs (UK) LLP, specialising in both domestic and international franchising.
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