If you're thinking about buying, and/or running, a franchise in the UK, a solid business plan is an absolutely vital and *non-optional* component of your success!

Without this foundational resource you won’t be able to form a clear vision of how you will build and run your franchise, which you’ll need for direction at every step of its development.

When you need to apply for funding from a bank, present your case to a franchisor, or if you're simply trying to get your head around day-to-day operations, a well-crafted business plan gives you clarity, credibility, and control.

Banks will rarely approve a business loan for a franchise without one, and franchisors often require it to assess your preparedness. Quite frankly, if you turn up to either without a decent business plan, you could well be laughed out of the room…

And above all, if you're investing your savings, or your future, you owe it to yourself to think it all through. That’s where our checklist comes in.

We also recommend that you get your business plan looked at by an expert or if you're unsure, work with someone like the dt group to give your business plan the best chance of success.

Learn from franchise business experts

At the dt group, we work with potential franchisees looking to acquire well known franchises across the UK (For example: Amigos, EasyStorage, ESQUIRES) to create business plans, secure funding and provide lasting and tailored accountancy services that help drive confident decisions and successful launches.

Here’s our essential 10-point checklist to help you create a business plan that works for you, your funders, and your future.

Table of contents

1. Introduction
2. Legal and business structure
3. The franchise opportunity
4. Market analysis
5. Sales and marketing strategy
6. Operations plan
7. Management and personnel
8. Financial forecasts
9. Funding requirements
10. Supporting documents
11. How the dt group can help

The Franchise Business Planning Checklist

1. Introduction

Start strong. This is your opportunity to give an immediate, high-level overview of your franchise business that makes lenders, franchisors, and advisers want to read on. It should summarise the most compelling points of your plan in a clear, confident tone.

It's like a business pitch on a single page and should be digestible at a glance.

Include:

• The name of the franchise you’re investing in, the sector it operates in (e.g. food and beverage, home services, health and fitness), and a short summary of what the business does.
  
  
• Your business goals for the first 1–3 years. Such as customer targets, revenue milestones, number of employees, or locations served.
  
  
• Your background and relevant experience, including why you’re well-placed to succeed as a franchisee. This might include past management roles, industry knowledge, or transferable skills.
  
  
• Why this is a viable opportunity, backed by evidence - such as the brand’s market presence, consumer demand in your territory, or a unique selling point that sets it apart from competitors.
  
  
• Why now? Mention any timing factors that support the business case - e.g., growth in demand for the service, demographic shifts, or a strong local market.
  
  

2. Legal and business structure

Your business structure affects everything from tax and liability to funding and franchisor agreements. This section shows that you’ve thought carefully about how your business will be set up and who’s involved.

Clarity and professionalism here help reassure banks and franchisors that you're serious, compliant, and prepared.

Include:

• Your chosen business structure: Will you operate as a sole trader, limited company, or partnership?
  
  
  • Sole trader - Simple to set up, but you’re personally liable for any debts.
    
    
  • Limited company - More complex but offers limited liability and may be preferred by franchisors and funders.
    
    
  • Partnership - Useful if you’re starting with another person, be sure to outline who’s responsible for what.
    
    
• Ownership details: Who owns the business and in what proportions? Are you the sole director/shareholder, or is there shared ownership (e.g. with a spouse, investor, or co-franchisee)?
  
  
• Roles and responsibilities: Who is taking on which parts of the business? If you’re working with a partner or have family support, be specific about roles.
  
  
• Registration details: If you’ve already registered your business with Companies House, include the company name and registration number.
  
  
• Professional support: Have you appointed an accountant, solicitor, or business adviser? This shows you’re building a support team from the outset.

3. The franchise opportunity

This section is all about showing that you understand the franchise you’re buying into, and why it’s a smart move. It’s your chance to demonstrate that you've done your homework and see a real opportunity for success in your chosen territory.

You’re joining a proven brand, as well as starting a business. Make that clear.

Include:

• An overview of the franchise: What does the business do? What products or services does it offer? What problem does it solve for customers?
  
  
• The strength of the brand: Is it well-known nationally or internationally? Has it won awards, achieved media recognition, or shown strong growth?
  
  
• Your territory: Where will you operate, and what’s attractive about that area? Highlight local demand, demographic fit, or lack of competition.
  
  
• Support from the franchisor: What training, systems, marketing, or operational support do they provide? Mention any launch support, ongoing mentoring, or national campaigns.
  
  
• Franchise performance: If available, include data or case studies showing how other franchisees have performed, especially in similar territories or markets.
  
  
• Why you chose this franchise: What attracted you to it? What makes it a good fit for your skills, goals, and values?
  
  
  

4. Market analysis

This section shows you’ve looked beyond the franchise brochure and really understand the opportunity in your local area. Lenders and franchisors want to know you’ve done your research, because even the best brand needs the right market to thrive.

This is about showing insight, rather than just a set of numbers. Show that you’ve thought carefully about your ideal customers and the competitive landscape.

Include:

• Your target market: Who are your ideal customers? Be specific, and consider age, income, lifestyle, location, or buying habits.
  
  
• Market demand: Why is there a need for this service in your area? Are there any trends or local data to support this (e.g. population growth, changing lifestyles, economic shifts)?
  
  
• Competition: Who else is offering similar services nearby? How does your offering differ? What’s your competitive edge; brand strength, price, convenience, quality, or customer experience?
  
  
• Opportunities and threats: Are there gaps in the market you can fill? Are there any risks (e.g. new competitors, economic downturns) and how will you mitigate them?
  
  
• Franchise brand advantage: How does being part of this franchise give you an edge in the local market (e.g. brand awareness, centralised marketing, proven systems)?
  
  

Key Tip: Where possible, back your points with evidence - local council data, industry stats, Google search trends, or quotes from local contacts.

5. Sales and marketing strategy

This section outlines how you’ll attract customers and grow your franchise from day one. It’s your plan for generating awareness, building relationships, and driving sales, especially in the crucial early months.

Show that you’ve thought about both franchisor-provided and local marketing efforts, and how you’ll bring them together effectively.

Include:

• Launch strategy: Outline how you’ll make a strong start. Think events, promotions, or introductory offers.
  
  
• Marketing channels: Which tools will you use? Local press, flyers, social media, Google Ads, partnerships with schools, gyms, or local businesses?
  
  
• Franchisor support: What central marketing assets will you receive? Are there national campaigns or email systems you can leverage?
  
  
• Lead generation: Explain how you plan to capture and follow up with leads. Consider CRM tools, enquiry forms, or call tracking.
  
  
• Customer retention: What’s your plan for turning new customers into loyal ones? Consider loyalty schemes, referrals, or excellent service standards.
  
  
• KPIs: State what success metrics, like enquiries, conversions, reviews, repeat business, you monitor to measure success. Investors are likely to ask you about this.
  
  

Key Tip: Consistent, locally tailored marketing is often what separates the top-performing franchisees from the rest.

6. Operations plan

This is the nuts and bolts of how your business will run. This section shows that you’ve thought about logistics, suppliers, and what a typical day looks like.

Include:

• Location: Where will you operate? Home-based, mobile, or from a commercial unit?
  
  
• Opening hours: When will you be open and available?
  
  
• Customer journey: What does a typical customer experience look like? From enquiry to delivery or follow-up.
  
  
• Suppliers and equipment: Who will supply your products, uniforms, or tools? Are any purchases already made?
  
  
• IT and systems: Will you use franchisor software, booking systems, or your own tools to manage operations?
  
  
• Stock and inventory: How will you manage stock levels or materials? Detail what systems/software you plan to use.
  
  
• Compliance: Demonstrate that you have planned thoroughly for health & safety, GDPR, insurance, or any local regulations.
   

7. Management and personnel

Whether you’re a solo operator or plan to build a team quickly, this section outlines who is involved and how the business will be managed day to day.

Include:

• Key people: Who’s running the business? List yourself and anyone else in management or operational roles.
  
  
• Roles and responsibilities: Who’s doing what? This is important even if it’s just you for now.
  
  
• Recruitment plans: Will you hire staff from the outset or as the business grows? What roles and skills will you look for?
  
  
• Training: What training have you completed or planned (including any franchisor onboarding)?
  
  
• Succession/contingency planning: If you're unavailable, who steps in? Even a basic plan shows foresight.

**You might be quizzed on your experience of people management, so get some examples ready!

8. Financial forecasts

This is one of the most important parts of your business plan. It proves you’ve run the numbers, and that your expectations are realistic and grounded in research.Most franchisors and banks will expect forecasts that cover at least three years.

This is a useful guide that explains how to do it.

Include:

• Sales projections: Month-by-month revenue forecasts, ideally broken down by service or product line.
  
  
• Cost of sales: What does it cost you to deliver each product or service?
  
  
• Fixed costs: Rent, salaries, subscriptions, insurance, vehicle costs, etc.
  
  
• Cash flow forecast: Will you have enough cash in the business to cover outgoings, especially in year one?
  
  
• Profit and loss: Projected profit margins and break-even points.
  
  
• Assumptions: Make it clear what your figures are based on (e.g. average job size, estimated number of customers, local costs).
  
  
• Sensitivity analysis: What happens if you don’t hit targets—or if you exceed them?
  
  

Very important tip: Don’t guess! Work with an accountant or adviser to build forecasts based on industry benchmarks and franchise data.

9. Funding requirements

If you’re applying for finance, this section tells lenders exactly what you need, how you’ll use it, and how you’ll pay it back. Clarity and transparency are key. Avoid vague or overly optimistic requests.

Include:

• Total amount required: Be specific about the amount of funding you're seeking.
  
  
• Breakdown of use: Show how the funds will be spent, e.g. franchise fee, equipment, marketing, stock, working capital.
  
  
• Other sources of funding: Will you contribute personal savings, get help from family, or use a Start Up Loan scheme?
  
  
• Repayment plan: Outline how and when you intend to repay any loans.
  
  
• Security or guarantees: Are you offering personal guarantees or assets as security?
  
  

10. Supporting documents

The final section is your evidence pack, everything that adds credibility to the rest of your plan. It’s your business plan’s “back-up”, and it helps investors and franchisors believe in what you’ve said.

Label everything clearly and keep it professional. A well-organised appendix makes your plan look polished and prepared.

Include:

• Your CV: Highlight relevant experience, management skills, and qualifications.
  
  
• Franchise information: Brochures, earnings claims, or performance data shared by the franchisor.
  
  
• Market research: Data or insights that support your market analysis.
  
  
• Supplier quotes: For vehicles, equipment, uniforms, or software.
  
  
• Property details: Lease terms, photos, or quotes if you’re taking on premises.
  
  
• Financial forecasts: Attach your cash flow, P&L and sales projections spreadsheets.
  
  
• Insurance or legal documents: Drafts of contracts, agreements, or policies.
  
  
• References: Optional, but useful, especially if you're applying for funding.

11. How the dt group can help

If you've made it to the end, then congratulations! You now have a well-rounded idea of what a proper franchise business plan involves. As you can see, it’s a fair amount of work.

But working with a specialist franchise accountant who can help with business planning and funding will make it a lot easier.

At the dt group, we’ve helped hundreds of franchisees across the UK build robust business plans that win funding and set businesses up for long-term success.

Whether you need help understanding franchise costs, forecasting cash flow, or preparing for a bank or franchisor interview, we’ve got you covered.

• Build a bank-ready business plan
• Get clarity on funding and forecasting
• Understand what franchisors are really looking for

Book a free call with Phillip Archer, QFP, and to understand more about how the dt group can help your franchise business dreams to become a reality.