Hints on writing a Successful Franchise Business Plan

The top franchise lenders have been saying, in recent British Franchise Association meetings that they have money to lend to those interested in starting up a franchise business.
For the franchise industry in the UK this is great news. The banks are enthusiastic about franchise businesses as statistics show, more than 90% of franchise owners in the UK run a profitable business confirms the British Franchise Association’s national franchise survey.

In addition, the high street lenders are making use of the governments Enterprise Finance Guarantee scheme. The Enterprise Finance Guarantee scheme is designed to facilitate government underwriting of funding for the development of small businesses up to £1million.

If you are requiring finance to fund a franchise you should prepare a well thought out and well written franchise development plan. Every franchise development plan that you submit to the banks for provision of finance must contain at least the following:

1. Your chosen franchise background findings
2. That you have understood and concur with the franchise contract
3. In-depth local market analysis by the prospective or current local franchise owner
4. Local competition research and the affect on turnover and profit projections
5. Declaration of available capital available for investment
6. Detail of any assets which can be used as security for the loan
7. No issues showing on your credit history including CCJ's
8. A declaration of your commitment to follow the proven franchise system you have selected
9. Support of your family members in the start up of your franchise business
10. The bank identifies your selected franchise as well organised and profitable from its own independent research

In view of the above the bank will come to a decision on the level of funding it will provide to the business builder.

To help with your business planning, take time to look at the online business sections of potential lenders as most of them provide free business planning software to help you build your plan correctly, helping you layout the essential information that the bank will need to properly understand your plan and therefore decide if they can lend you what you require.
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