A business plan completed prior to the grant of franchise rights provides the Franchisor with written evidence that you have investigated the franchise opportunity before investing and therefore you are in the position to make a “well-informed business decision” prior to making a commitment. While the Franchisor cannot and does not approve your business plan, it will also act as a road map in keeping you on course. A business plan is a requirement to any bank financing and otherwise in accordance with the Code of Ethics of the Canadian Franchise Association.