Franchised Convenience Store Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Franchised Convenience Store Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Franchised Convenience Store business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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Franchised convenience stores are businesses that are always able to produce sales in any economic climate. The low pricing point associated with all the merchandise distributed through these retail locations allows them to always have a ongoing influx of traffic. Additionally, by operating in a franchised capacity these businesses enjoy much higher visibility than their non-franchise counterparts. It should be noted that many franchised convenience stores also primarily operate in tandem with a gas station, but this is not always the case.
The startup cost for a new franchise convenience store typically run anywhere from $150,000 to $500,000 depending on the amount of money that is charged as the upfront franchising fee as well as whether or not real estate is going to be purchased in conjunction with the development. Most importantly, these businesses typically generate gross margins of 60% to 75% on all of the products sold throughout the location. One of the reasons why these businesses are very economically stable is the fact that they offer a number of food, beverages, household goods, and other life necessities to the general public. In exchange for a very high visibility marketing campaign and use of an established brand name, most convenient store owners that operate under a franchise agreement can expect that 5% to 8% of their aggregate revenues will have to be paid to the franchising company.
A franchised convenience store SWOT analysis should be produced as well. As it relates to strengths, franchised convenience stores are able to generate high gross margins, enjoy moderately high barriers to entry, and are able to capitalize on an established brand name.
For weaknesses, these businesses do have very high operating expenses not only is it relates to acquiring a highly visible retail facility but also from ongoing payroll costs as well. Inventory acquisitions can also be expensive given that a substantial amount of it product that are purchased are food and are subject to inventory spoilage.
For opportunities, these businesses are typically able to grow when the owner decides that they would like to establish additional franchised locations. The vast majority of franchise agreements allows for owners to very quickly acquire additional units after their initial one becomes profitable. In fact, most franchising systems like when existing owners seek to expand their operations given that these people are already familiar with the procedures and protocols that are outlined in the franchise disclosure document.
For threats, there’s really nothing that is going to impact the way that a franchised convenience store conducts business moving forward. These businesses are always going to be in demand at all times.
Almost all financial institutions are happy to provide extensive amounts of capital for franchised convenience stores given the highly economically feasible nature of these businesses. Of course, a franchised convenience store business plan is going to be required in this document should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. This business plan is typically required not only by a lending institution but also by the franchising company as well.
An extensive demographic analysis should be showcased within the business plan which discusses population size, population density, annual household income, number of people that pass by the anticipated location each day, and the amount of people that work in a specific market but not necessarily live there. A competitive analysis is always required for these types of businesses as well as there is typically a number of both independent as well as franchised convenience stores and operate in any given market.
A franchised convenience store marketing plan is also typically developed, but this can be done somewhat on the more modest basis given that most franchised convenience stores enjoy substantial ongoing marketing support from the franchising company. The franchising company will typically engage in a broad-based local, regional, and national level marketing campaign that includes print and media advertisements. On the franchising company’s website there is usually a directory of existing stores so it is not necessary for these businesses to typically maintain their own website.
Prior to signing a franchise agreement, the entrepreneur should work closely with their attorney in order to determine which types of local marketing campaigns the company can undertake on its own accord. There are usually a number of rules and regulations within the franchise agreement that guides what a entrepreneur can and cannot do as a release from a promotion and marketing standpoint. This is one of the primary benefits to owning and operating a franchise is that almost all marketing operations are conducted by the third-party franchising company. In some cases, beyond the standard royalty fee charged by the franchising company – there may be some additional marketing and advertising pooled funds that may be contributed to on a monthly basis.
Franchised convenience stores are great ways for both new entrepreneurs and established entrepreneurs to enjoy highly predictable streams of revenue on a monthly basis. These businesses have moderately still low start up costs and typically are always able to remain profitable in any economic climate. There is nothing about this industry is going to change in the next 20 years given that people are always going to want to stop into a convenience store for quick bite to eat or to buy life essentials.