Franchise vs. Independent Business Plan: Key Differences to Know
Table of Contents
Introduction: Same Goal, Different Roadmaps
All great businesses start with a plan. But if you’re launching a franchise location vs. building an independent startup from scratch, your business plan needs to follow very different rules.
At Wise Business Plans, we’ve written over 15,000 custom business plans for both franchise buyers and independent entrepreneurs. In this article, we break down the key differences between franchise and independent business plans—so you can prepare a plan that gets funded, approved, and off the ground.
At a Glance: Franchise vs. Independent Business Plan
Feature | Franchise Business Plan | Independent Business Plan |
Brand & Model | Pre-established (FDD required) | Built from scratch |
Market Entry | Based on assigned territory | Requires full competitive & market strategy |
Operations | Defined by franchisor (manuals, systems) | Built by the founder |
Financials | Based on FDD averages + territory assumptions | Requires detailed custom modeling |
Approval Required | Franchisor + lender (often SBA) | Only lender or investor (optional) |
Use Case | SBA loans, franchise approval, internal roadmap | Funding, strategy, investor pitch, growth mapping |
Franchise Business Plans: What They Must Include
When buying into a franchise, your business plan should align with:
- The brand’s Franchise Disclosure Document (FDD)
- Local territory demographics
- Franchisor operations and marketing structure
- SBA loan requirements (if financing)
Key Sections:
- Executive Summary – Emphasizes franchisor’s success, your role, and local growth potential
- Company Overview – Your legal entity + the franchise relationship
- Market Research – Local demand for brand’s services/products
- Franchise Support – Details on training, systems, brand recognition
- Use of Funds – Franchise fee, equipment, working capital, etc.
- Financials – Based on franchisor performance averages, adjusted to your market
- Appendix – FDD references, franchise agreement excerpts, etc.
Tip: Using real FDD Item 19 performance averages in your forecast adds credibility when submitting to SBA lenders.
Independent Business Plans: What They Must Include
For independent startups, you’ll be expected to demonstrate everything from the ground up—including your idea’s viability, market research, competitive edge, and revenue model.
Key Sections:
- Executive Summary – What you’re building, why it matters, and your funding needs
- Business Model – Unique concept, value proposition, pricing, and monetization
- Market Research – Full TAM/SAM/SOM analysis with customer persona targeting
- Marketing & Sales – How you’ll attract, convert, and retain customers
- Operations Plan – Staffing, vendors, production, fulfillment
- Financial Projections – Assumption-driven 3–5 year forecasts with a break-even point
- Appendix – Resumes, concept visuals, permits, product roadmap
Wise Business Plans helps independent founders develop go-to-market strategies and build credibility with investors or lenders.
Real-World Examples
Franchise Example:
“Our client opened a JAN-PRO Cleaning & Disinfecting franchise. We based their financials on Item 19 and added local population density and office building data to support revenue projections. The SBA loan was approved.”
Independent Example:
“A mobile pet grooming startup in Austin needed a unique model for investor funding. We built custom pricing tiers, projected customer growth by zip code, and included fleet expansion scenarios over 5 years.”
What Happens When You Mix the Formats
Using an independent-style plan for a franchise:
- Misses key FDD references
- Ignores franchisor operations and support
- May be rejected by franchisor or lender
Using a franchise-style plan for an independent concept:
- Lacks strategic innovation and differentiation
- Looks too templated or rigid
- Investors may question originality and viability
Why Entrepreneurs Choose Wise for Both
- 15,000+ plans delivered across 400+ industries
- Specialists in both SBA and investor business plans
- Franchise FDD integration and lender-preferred formatting
- Independent startup innovation and market modeling
- 100% U.S.-based writers and analysts with MBA credentials
Final Thoughts: Match the Plan to Your Business Path
Whether you’re buying into a proven brand or launching something totally new, your business plan must reflect your business model. At Wise Business Plans, we tailor each document to its purpose—because lenders, franchisors, and investors know the difference.
Need Help With Your Franchise or Startup Business Plan?
Wise Business Plans builds custom plans for both franchise buyers and independent entrepreneurs—SBA-ready, investor-grade, and designed to win approval.