How to Write Letter

Franchise Proposal Letter

A franchise proposal letter is written by a company who wants to take up a franchise of another company. It is written in response to a request for proposal (RFP). Read the RFP very carefully. It might ask you some specific information.


Describe your business and experience in brief. Specify how much capital you can invest. Also mention what business plan you have. If you have done any market survey, state the risks involved. Do not forget to specify if you have sufficient capital to invest in the franchise. If you do have it, then mention the bank or the financial institution that will give you the loan for starting the franchise.

ABC Catering,
45th Geary Street,
San Francisco, CA 94108,
Phone: 415-71584.

Date: 21/02/11

Mr. John Lennon,
1 Mission Street,
San Francisco, CA 94102,

Subject: Proposal for opening a franchise

Dear Sir,

In response to your letter, inviting a request to proposal, we would like to make the following proposal for opening a franchise of your business, Fresh Pizzas. Let me introduce you to our company.

ABC Catering was initially set up by Mr. Brown and Mr. Plods four years ago. The two partners set up the business to supply food for social events. The business did well and now we wish to expand our business. The owners have the relevant experience of setting up the franchise and managing it efficiently.

The various specifications required for taking up the franchise are as follows:

  1. The floating capital available is $__. We also have the capacity to invest in expanding the business, if required. The details of the finance are as follows:
    Decoration $__
    Kitchen Equipment $__
    Purchasing the equipments $__
    Operating the franchise $__
    Expansion $__
  2. Market Research: We have already done a comprehensive market analysis before planning to set up the franchise. The research indicated that the location would be very suitable for doing the business. The proposed site for the lease has many offices and shopping malls near it. So our potential customers would range from teenagers to working people. The proposed street of the site is also very near the residential streets. This will make it very easy for us to deliver pizzas at home. There are no competitors, who sell pizzas near the location of the site. If we find any competitors, we do have some effective marketing strategy to beat them.
  3. Location of the premises: We intend to lease a premise on the following address: 1044 Market Street, San Francisco, CA 9003. This is an excellent location for setting up a pizza outlet. The lease has been finalized and we will enter into a formal agreement only after you sign the contract with us. The land owner is ready to sell the property after the expiry of the lease.
  4. Area: The total carpet area of the property is __ square meters. There is ample parking space available. A small area for an open restaurant is also available, if needed.
  5. Solicitor: Our Company has appointed Ms. Stevens as our solicitor for all the legal advice that would be needed.

Given the consultancy and other specifications for setting up the franchise, we do have the capability to do well. If you have any queries regarding the above specifications, please contact 415-5557852. We hope to hear from you soon.

Yours Sincerely,
C. J. Thomson,
ABC Catering.

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