Food Franchise Business Plan (Freshbite Express –Texas, USA)

Opportunity

The local area shows steady demand for quick food service. This demand comes from daily commuters. It also comes from nearby offices, residential areas, and surrounding retail shops. Simple pricing helps attract repeat customers. Fast service and familiar menu options support regular visits. Sales increase during lunch hours, dinner time, and weekends.

Buying an existing franchise allows the owners to start quickly. The franchise name is already known and shows steady demand in the market. This lowers startup risk and makes learning easier. It also removes many delays that often happen when starting a brand new business from the very beginning from scratch.

Funding Requirement

The total project cost is $510,000, structured as follows:

• SBA 7(a) Loan (90%): $459,000
• Owner Equity Injection (10%): $51,000

Use of Funds includes:

• Purchase of existing franchise location: $375,000
• Franchise transfer fee and required training: $32,000
• Equipment refresh and minor improvements: $48,000
• Opening inventory and supplies: $20,000
• Initial working capital reserve: $35,000

The SBA loan is structured over a 10-year term at an estimated 10.25% interest rate, with an estimated monthly payment of $6,100.

Target Market

Our primary customer groups include office workers, daily commuters, nearby residents, and students seeking quick, affordable meals during lunch and dinner hours.

Secondary groups include parents purchasing kids’ meals and mobile-first customers who prefer app-based ordering for pickup.

Financial Overview

FreshBite Express projects Year 1 annual revenue of approximately $590,400, based on an average of 160 daily transactions, a $10.25 average ticket, and 30 operating days per month. Transaction volume is projected to increase to 175 daily transactions in Year 2 and 190 daily transactions in Year 3 as operations stabilize and repeat customer traffic improves.

Fixed monthly operating costs are approximately $35,325, including labor, rent, utilities, insurance, packaging, and SBA loan payments. Variable costs average 37% of revenue, primarily driven by food cost, franchise royalties, and required marketing fund contributions.

Monthly break-even revenue is estimated at approximately $56,100, equivalent to roughly 183 transactions per day. Early-year operating shortfalls are covered by the working capital reserve included in startup funding. Owners do not take salaries during the stabilization period.

Company Overview

FreshBite Express business formed to buy and run one existing unit of a fast-food franchise at 1820 Ridgeview Parkway in Plano, Texas. The restaurant will stay open at the same location and continue serving customers who already visit the area. The site sits in a busy retail strip near offices, homes, and commuter traffic. It has visibility, access, and on-site parking. These features help bring in guests and repeat customers.

The company’s goal is to keep operations steady while improving control. The owners will be directly involved and will follow all franchisor rules, systems, and operating standards.

Legal Structure

FreshBite Express is organized as a multi-member limited liability company formed specifically to own and operate the franchise location. This structure provides clear ownership allocation, liability protection, and operational flexibility for the owners. The LLC structure meets SBA 7(a) lending requirements and aligns with standard franchise ownership and franchisor approval guidelines.

Business Concept

FreshBite Express will operate one quick-service restaurant under a franchise model. The menu includes standard franchise items. These include burgers, chicken sandwiches, wraps, fries, drinks, and combo meals. Menu pricing follows franchise rules. Offerings stay consistent across all franchise locations.

The restaurant will operate seven days a week. Hours will run from 10:30 AM to 10:00 PM. Daily operations will follow franchise systems. These cover food preparation, service speed, staffing, inventory tracking, and quality control. Both owners will work on-site. They will support front-counter service, order handling, and daily supervision.

Ownership Breakdown

Both owners are first-time franchise operators and will be actively involved in daily operations. Neither owner will take a salary until the business reaches consistent break-even.

Franchise Relationship

FreshBite Express operates under a franchise agreement with a nationally established fast-food brand with over 12 years of operating history and more than 90 locations nationwide.

Key elements of the franchise relationship include:

• Mandatory initial training for owners and managers lasting approximately 3 to 6 weeks
• Standardized menu offerings and pricing structure across all locations
• Required operating procedures covering food preparation, service standards, and quality control
• Approved supplier network and centralized purchasing systems
• Ongoing operational support, performance reviews, and field inspections
• A 10-year franchise agreement with renewal options

This franchise relationship provides proven systems, brand recognition, and ongoing support, reducing operational risk for first-time owners.

Why This Franchise Works at This Location

The fast-food franchise model aligns well with this Plano location due to steady demand drivers, strong site visibility, and the location’s established operating history.

These combined factors provide a stable transaction volume over time and make the franchise model a feasible and environmentally friendly local business system for this trade area.

Compliance and Regulatory Standards

We plan to run our business in strict compliance with all the regulations at the federal, state, and local levels that govern food service operations.

Compliance requirements include:

• state and local business licenses and permits required
• Health department inspections and food safety regulations
• Employee labor laws, pay rules, and payroll tax obligations
• Sales tax collection and correct tax reporting
• Franchise rules for operations, branding, and reporting

Following required franchise regulations helps maintain steady operations, manage risk, and remain approved for continued franchise support.

Market Analysis

The U.S. fast food and quick-service restaurant market was valued at $254.11 billion in 2024 and is expected to grow at an annual rate of about 3.4% from 2025 to 2030. Growth is supported by population increases and strong customer demand for convenient food options such as burgers, sandwiches, and pizza.

Many fast food restaurants are also adjusting their menus to match changing customer preferences, including offering healthier and plant-based options. At the same time, the use of mobile ordering, faster drive-thru systems, and improved restaurant technology is helping businesses serve customers more efficiently. These factors are expected to support steady growth in the U.S. fast food and quick-service restaurant industry over the coming years.

Franchises in the United States show strong survival rates compared to many new businesses. According to Capital Counselor, about 92% of franchise locations are still in business after two years, and about 85% remain open after five years. These rates are much higher than those of many independent startups, which often fail at a faster pace.

Plano City Overview

Plano is a rapidly developing city in North Texas. Plano currently estimates a population of 293,286 (2025).

Plano has a high median household income of about $108,649. This suggests that residents in the area have good buying power for food and dining out.

Neighborhood Fit and Demand Drivers

FreshBite Express operates along Ridgeview Parkway, a mixed-use commercial corridor that combines office buildings, shopping centers, and nearby residential neighborhoods. The area experiences steady weekday and evening activity due to employees commuting between workplaces and nearby housing. Traffic patterns support regular food purchases tied to daily routines rather than special occasions.

The surrounding environment favors food options that are fast, accessible, and consistent. Businesses in this corridor benefit from customers seeking meals that fit into short breaks, commutes, and family schedules.

Target Customers

FreshBite Express focuses on:

Each group can be served without increasing service complexity or wait times.

Competition & Positioning

The Local Competitive Picture

The area has many restaurants, which offer similar foods & services as FreshBite.

Competitive Positioning

FreshBite Express runs as a quick service restaurant for people who want known food, clear prices, and fast orders every day. Its strength comes from prep steps, smooth service flow, and a menu made to bring customers back.

Key advantages include:

• Established national brand recognition
• Consistent menu and pricing across locations
• Faster service compared to many independent restaurants
• Franchise-supported training and operating systems
• National and local marketing support is funded through a dedicated marketing contribution

Rather than competing on novelty or premium dining, FreshBite Express competes on speed, reliability, and convenience.

Vendors & Equipment

To maintain daily operations, we depend on approved franchise suppliers and standard kitchen equipment. These vendors and systems facilitate the fast preparation of food in the restaurant, the smooth management of orders, and the serving of customers during the rush hours without any waiting time.

Key Vendors

• Food suppliers approved by the franchisor, which provide proteins, bread, produce, frozen items, and other necessary ingredients
• Centralized purchasing programs mandated by the franchise system are the only way to keep pricing and quality stable
• Packaging suppliers approved for the restaurant and the customer, i. e, takeout items
• The franchise required a POS system for order entry, payments, and coordination in the kitchen

Core Kitchen Equipment

The site has the standard commercial-grade equipment of a quick-service restaurant of a normal nature, such as:

• Commercial refrigeration units (brands like True or Turbo Air) for food storage
• Stainless steel prep tables and workstations for the preparation of sandwiches and wraps
• Commercial fryers and hot holding equipment (like Frymaster or Henny Penny) for the cooked items
• Beverage dispensers and cold storage units are put to use for drinks
• Exhaust hood and fire suppression equipment conforming to local health and safety rules

Together, these vendors and equipment systems are in line with the standards of the franchise and help to provide quick service, safe food handling, and reliable daily operations.

Operations plan

Daily Management

FreshBite Express carries out a daily regimen to ensure that the service remains quick and the food quality stays at a consistent level. The restaurant is operating seven days a week from 10:30 AM to 10:00 PM and serves lunch, dinner, and weekend customers.

Staff come to work before the restaurant opens in order to prepare the kitchen, partially cook the main items, set up prep stations, and clean the seating and service areas so that everything is ready for the opening of the doors. The lunch traffic is the most energetic time of the day and is mainly the result of office workers and commuters passing by.

Customers are placing their orders through the franchise’s approved POS system, which is an excellent tool for the front counter staff and kitchen during the rush hours. In the afternoon, staff are replenishing ingredients and getting the stations ready for the evening.

The dinner traffic is getting busier in the early evening with both dine, in and takeout orders from families and local residents. Food safety checks and line reviews are the moments during the day when the quality is maintained, portions are controlled, and health requirements are met.

Staffing Model

We use a lean staffing model that supports efficiency, service speed, and cost control while meeting franchise requirements.

Total Monthly Labor Cost: $19,300

Both owners work on-site and do not draw compensation until the business reaches break-even.

Software Stack

FreshBite Express uses franchise-approved software systems to support daily operations and keep service accurate and consistent. These systems are required by the franchisor and are used across all franchise locations.

The core systems include a franchisor-approved POS system for in-store orders, payments, and kitchen coordination, along with built-in reporting tools for tracking sales and inventory. Digital ordering tools provided by the franchisor support online and takeout orders. Basic scheduling and documentation tools are also used to manage staff shifts and daily records.

Together, these systems help the restaurant handle busy periods, track food costs, and follow franchise operating standards.

Compliance Requirements

FreshBite Express follows all applicable local, state, and franchise compliance requirements to ensure safe and uninterrupted operations.

Requirements include:

• City and state business licenses
• Local health department food permits
• Food safety training and certification for management staff
• Employee wage, labor, and payroll compliance
• Franchise brand audits and operating reviews
• Fire safety, hood, and ventilation inspections
• ADA-compliant customer areas

Regular inspections and renewals ensure the business remains in good standing.

Contracted Services

FreshBite Express uses external service providers to support reliable operations.

The services mentioned here are the ones that enable the employees to put their energy into food preparation and customer service.

Service-Level Expectations

FreshBite Express has definite performance levels that it maintains. It is expected that orders will be prepared swiftly, service lines will be kept stocked during the whole hours of operation, and food safety procedures will be followed at all times.

Takeout and digital orders are done correctly and given to the customers quickly. These standards are the main pillars of the company’s repeat business, daily operations running smoothly, and customer experience being consistent.

Marketing & Sales Strategy

The restaurant, which is already a beneficiary of a well-known brand and an existing customer base, still needs continuous marketing efforts to attract new customers and keep a steady flow of daily sales.

FreshBite Express will concentrate on straightforward and practical marketing strategies that would increase their visibility locally, be a means of getting the customers to visit again, and thus, be a source of regular walk-in, takeout, and online orders.

1) Franchise-Led Marketing

FreshBite Express follows the marketing plan set by the franchise. This includes local advertising and daily brand support. National and regional ads help people recognize the brand and keep the restaurant visible online and in the area. These efforts help bring in regular customers and support steady walk-in and takeout orders.

2) Local Search & Online Discovery

Many customers find the restaurant through local search tools like Google Maps and nearby search results. This helps people quickly locate the restaurant when they want fast food close by. This channel is especially important during lunch and dinner hours, when customers make quick decisions based on distance and ease of access.

3) In-Store Visibility & Local Promotion

The restaurant’s physical location also helps attract customers. Window signs, clear road visibility, and easy parking bring in nearby drivers and commuters. Simple local promotions, such as flyers shared in nearby offices and neighborhoods, help encourage repeat visits and everyday meal choices.

4) Partnership Marketing

FreshBite Express works with nearby offices, schools, and community groups. These relationships help generate group orders, staff meals, and small catering requests. They also introduce the restaurant to customers who value quick service, fair prices, and familiar menu items during workdays and local events.

Customer Acquisition Strategy

Customer acquisition focuses on maintaining steady traffic following the ownership transition and increasing repeat visits over time. Initial efforts focus on reminding existing customers that the location remains open, familiar, and consistent.

Key acquisition tactics include:

• Grand re-opening promotions after ownership transfer
• Flyer distribution to nearby offices and residential communities
• Local awareness offers for first-time and returning customers
• Franchise-supported digital promotions and loyalty programs

These efforts support stable transaction volume without relying on heavy discounting.

Launch Promotions

FreshBite Express uses short-term promotions to drive early engagement while protecting long-term pricing.

Examples include:

• Limited-time combo meal discounts during the re-opening period
• Special pricing for group or office orders
• Loyalty program sign-up incentives

These promotions are time-limited and designed to encourage repeat visits rather than one-time discount seekers.

Marketing Budget

Marketing activities are primarily funded through the required 2% franchise marketing contribution, which supports national advertising and digital campaigns.

Local marketing expenses are kept modest and focused on:

• Printed flyers and local signage
• Community outreach activities
• Re-opening promotional materials

This approach keeps marketing costs controlled while benefiting from franchise-scale advertising.

Sales Process

Customers discover FreshBite Express using franchise ads, online search, or nearby visibility. Orders are placed at the counter or through franchisor-approved digital ordering tools.

Orders move straight from the POS system into the kitchen so staff can prepare food fast and correctly. Finished orders are handed over quickly for dine-in or takeout. This process keeps wait times low, improves accuracy, and gives a smooth experience for commuters, office workers, and families nearby.

Financial Plan

Overview

The financial plan for FreshBite Express is based on the acquisition of an existing, operating fast-food franchise location. The projections reflect current sales activity, franchise-controlled pricing, and standard quick-service restaurant cost levels. Assumptions are conservative and aligned with SBA 7(a) franchise acquisition lending expectations.

The plan assumes continuity of operations under new ownership, with gradual improvement driven by consistent execution, repeat customers, and stable staffing rather than aggressive expansion.

Acquired Business Value

At the time of purchase, the business generates about 140 transactions per day, producing roughly $43,000 in monthly revenue or $516,600 per year, based on an average ticket of $10.25.

Revenue Assumptions

Revenue is generated from burgers, chicken items, wraps, combo meals, sides, and beverages. Sales come from walk-in customers, takeout orders, and franchisor-supported digital ordering channels.

Key assumptions:

• Average ticket size: $10.25
• Operating days per month: 30
• Transaction growth reflects stabilization and repeat traffic

Operating Expenses

Operating expenses are divided into variable and fixed costs based on their relationship to sales volume.

Variable costs include food costs, franchise royalties, and required marketing fund contributions. These costs increase or decrease with sales and are managed through portion control, standardized recipes, and franchisor pricing rules.

Fixed costs include labor, rent, utilities, insurance, packaging and disposables, and SBA loan payments. Fixed costs remain relatively stable and are controlled through lean staffing, direct owner involvement, and franchise operating standards.

Projected Profit & Loss Statement

Break-Even Analysis

• Monthly fixed costs: $35,325
• Contribution margin ratio: 63%

Break-even revenue:
≈ $56,100 per month

Break-even volume:
≈ 183 transactions per day

Break-even is expected as transaction volume approaches projected Year 2 and Year 3 levels, supported by stable staffing efficiency and cost control.

Cash Flow Summary

Early-year operating shortfalls are expected due to full debt service and conservative assumptions. These shortfalls are covered by the working capital reserve included in startup funding.

Owners do not take salaries during the early stabilization period, supporting cash preservation.

Balance Sheet

The balance sheet summarizes FreshBite Express’s projected financial position over the first three years of operations, showing assets, liabilities, and equity following the acquisition of an existing franchise location and the application of conservative operating assumptions.

Funding Requirement

FreshBite Express requires $510,000 to acquire and operate an existing fast-food franchise location. The funding structure follows SBA 7(a) acquisition guidelines and includes owner equity and senior debt financing. Owner equity meets SBA injection requirements, and loan sizing is supported by projected cash flow and franchise operating history.

Sources of Funds

Uses of Funds

Loan Terms & Repayment Capacity

• Loan type: SBA 7(a) Franchise Acquisition Loan
• Loan amount: $459,000
• Loan term: 10 years
• Interest rate: ~10.25%
• Estimated monthly payment: ~$6,100

Loan repayment is supported by steady daily transaction volume, strong lunch and dinner demand, controlled labor and food costs, deferred owner