Business plan and interview

[Fza]

Hello everybody

I am applying from 200 k route

Have some questions and would be grateful with any help

1. I am undertaking a franchise business. For visa application can I use the business plan that franchisor gives me? Or I must provide BP my self?

2. In regard of business location and market research the franchisor will help me when we start. But I noticed that in interview officer will ask about these. Can I simplly tell them franchisor will help in these regards after entering UK and making contract with them? or do I need to do the research myself before entering to be able to answer the officer?

3. For the interview do I need to be completely familiar with and memorize the UK tax, salary, insurance, etc... regulations?

Thanks for your help friends

[Legal83]

What sort of business are you going to undertaken ?

[Fza]

As I mentioned it's a franchise business

[attahaas]

@Fza

You should be more worried about how the 200K fund would be spent on eligible expenses once you become a franchisee, than the things you mentioned.

One member posted on the forum a while ago about his application with Shell franchise for 200K. With Shell franchise, 100K will go into bank deposit as security and another 100K will go into buying existing stock in 6 outlets, And, one has to use up the entire 200K like this. So, the interviewer apparently said "both these are NOT eligible expenses as per this visa and do you have another 200K to use for eligible expenses?". And, since the applicant couldn't provide the evidence, there was a rejection among other reasons with "0" points for funds!

Franchise fee, leasehold fee, goodwill payment, security bank deposits, buying existing/new stock in the stores/outlets and such similar expenses are not eligible expenses. So, your business plan and YOUR explanation must be very clear about these first. The questions you asked are secondary compared to the expenses!

Coming to your questions, I am also in the process of applying but by joining an existing business in the UK, as a director - not a franchise.
1. I am submitting their business plan.
2. Market details are already explained in the BP by the business.
3. Yes, we need to be familiar about the taxes (at least VAT), minimum wages, insurances and safety and health regulations to be followed once we have employees, etc.

This is my humble opinion only as I haven't applied yet. Hope that helps.

[hemsingh81]

Hi Attahaas,

I am also planning to apply Tier 1 Entrepreneur visa with existing business as director, and I have some query regarding these can you please share your direct mail Id so that I can share the all information of mine with you.

Many many thanks

[attahaas]

Hi Attahaas,

I am also planning to apply Tier 1 Entrepreneur visa with existing business as director, and I have some query regarding these can you please share your direct mail Id so that I can share the all information of mine with you.

Many many thanks

Here you go: krishna9780@hotmail.com

[Fza]

@Fza

You should be more worried about how the 200K fund would be spent on eligible expenses once you become a franchisee, than the things you mentioned.

One member posted on the forum a while ago about his application with Shell franchise for 200K. With Shell franchise, 100K will go into bank deposit as security and another 100K will go into buying existing stock in 6 outlets, And, one has to use up the entire 200K like this. So, the interviewer apparently said "both these are NOT eligible expenses as per this visa and do you have another 200K to use for eligible expenses?". And, since the applicant couldn't provide the evidence, there was a rejection among other reasons with "0" points for funds!

Franchise fee, leasehold fee, goodwill payment, security bank deposits, buying existing/new stock in the stores/outlets and such similar expenses are not eligible expenses. So, your business plan and YOUR explanation must be very clear about these first. The questions you asked are secondary compared to the expenses!

Coming to your questions, I am also in the process of applying but by joining an existing business in the UK, as a director - not a franchise.
1. I am submitting their business plan.
2. Market details are already explained in the BP by the business.
3. Yes, we need to be familiar about the taxes (at least VAT), minimum wages, insurances and safety and health regulations to be followed once we have employees, etc.

This is my humble opinion only as I haven't applied yet. Hope that helps.

Dear attahaas

Thanks alot for your answer.
I am wondering how come buying new stock from franchisor for my business and paying the leasehold fee can't be counted as investment! I read in this forum and in the visa guideline that business permises rent is counted as investment why it doesn't count when it comes to a franchise business?!

From your answer I can understand that submitting franchisor's business plan would be ok but about the market research since I am stablishing a new business in a new area I apperently can't use their previous data in other areas. So my second question is still there.

Many thanks for your detailed answers anyway.

Hope some friends can help more in regard of what will count as investment when undertaking franchise business.

[Fza]

By the way
Do I need to show in the business plan how the 200k will be spent during 3 years?

[attahaas]

Dear attahaas

Thanks alot for your answer.
I am wondering how come buying new stock from franchisor for my business and paying the leasehold fee can't be counted as investment! I read in this forum and in the visa guideline that business permises rent is counted as investment why it doesn't count when it comes to a franchise business?!

From your answer I can understand that submitting franchisor's business plan would be ok but about the market research since I am stablishing a new business in a new area I apperently can't use their previous data in other areas. So my second question is still there.

Many thanks for your detailed answers anyway.

Hope some friends can help more in regard of what will count as investment when undertaking franchise business.

You should ask HO those questions about buying stock and leasehold fee, NOT me. But, I can only guess why leasehold fee can't be counted as investment, because it is going to the owner as a security payment which has no standard similar to a goodwill payment, where as a rent always has to obey the market conditions. Buying stock is locking your investment, BUT so long as your financial plan shows 200K expenses through 3 years it should be ok. You can achieve this by way of REVENUES even if you buy stock. In other words, if you can show that your stock can help you generate enough revenue to sustain the stock AND cater to your expenses as required by the visa, it is OK!

I never told you to submit your franchisor's previous data in other areas. You didn't explain in your original post that the franchisor is providing you "previous" data and not current data. In your original post you just said they will provide your market research. So, your info is not comprehensive in the first place, so how do you expect the members to imagine/envision that they are providing previous data. It's better you learn to provide relevant info before your show attitude to members trying to help you.

Now, whatever BP you submit should have market research about the area of your interest and should be current. If your franchisor can't provide that to you then it's your headache.

The company I am going to join provided me with current market research.

By the way
Do I need to show in the business plan how the 200k will be spent during 3 years?

DEFINITELY YES!

[Fza]

My dear friend

I can't understand from which word u thought I am showing attitudes to u?! I did my best to talk friendly and thanked u twice for ur help it seems u r misunderstanding!! I just explained ur case which u explained that u r investing in an axisting business and use their market research doesn't match my criteria cause I am stablishing new business and had no intention to offend u!!!

And also I didn't understand what u mean by saying ask HO not me!!! if I asked a question here I dont mean to question u or ur answers I am just seeking advice and help from u and other frnds here and i think its the purpose of this forum! Don't take any word personal my frnd. i didn't try to question u or ur answer! I was just wondering maybe some one can have more accurate info and still I thank u for ur help and answer!

Anyway Accept my appologise if my words unintentionally offended u!!!

About my second question As I explained I am out of UK and franchisor will help me with market research when we start. But we can't start and make the contract before I get the visa! Thats why I am confused cause I can't get the market research data from them before we make the contract and I cant make the contract before getting the visa. So as u meantioned thats a headache !!!


Again thanks for your kind answers and hope u don't take any of my words personal in here : )

[attahaas]

Understood.

Now, it's clear that the franchisor is not willing to provide you market data before you make a contract, and you can only make a contract after you land in the UK. However, in your case (so is mine too), you need a "Letter of Intent" (LoI) from the franchisor expressing their interest in providing you their franchise. This LoI is a non-binding document and subject to contract. I got the LoI and also complete business plan along with it.

I am not sure what details the LoI should have in case of a franchise, but in my case where I will be joining as a director in an existing company, the LoI clearly states my roles, how my background will help the business grow, that the fund will be used to hire at least 2 full time employees & for operational expenses, how the money is injected into business (share capital and/or loan), salary, etc. The financial plan provided is VERY detailed and exhaustive, and includes all kinds of operational overheads like salaries, marketing, advertising, book keeping, rents, rates, NI, insurances, and what not.

You should try and convince your franchisor to provide you the business plan, financial plan and the associated market research.

[Fza]

Thanks alot

U really helped
Then I will try to convince them for a Lol.

And thanks for mentioning about the franchise investment issues in the first place. I have to go through more research about that to make sure I can meet the investment criteria.

Thanks again and Wish u all the best with ur case

[attahaas]

Thanks Fza. All the best to you too!

Feel free to contact me on krishna9780@hotmail.com if you need any help in this regard.

[Entreprenure 10 jobs]

Fza,

First things first, krishna and your conversations are fine.

In 2011 i had thought i will have an accountancy audit office, being a qualified accountant and made a bp accordingly. Because i knew ALL to do so.
REMEMBER BP MUST BE OF THE BUSINESS YOU ARE FULLY AWARE OF, AND EXPERIENCED AND OR QUALIFIED TO DO. YOUR PREVIOUS WORK EXPERIENCE REFLECTING THIS GETS YOU AHEAD ON PAPER AND INTERVIEW.

1. When i came here i realized Accontancy audit is not viable, and did not need 200k anyway. So after much research switched my investment into montessori schools.

2. There is NO restriction to do so per policy.

3. Anyone / everyone will contact say burger king and plan taking a franchise. But no experience qualifications to do so.

So put youself in the visa officers shoes, ???????

A friend planned a jewelery trade in the uk, being the family business he had tons of experience, got t1, came to uk and now runs a few burgerkings being more feasible...

Thoughts that might help, not suggesting to intentionally mis represent, BUT YOU BP MUST BE YOUR BP NOT BORROWED OFF A FRANCHISE. UNLESS YOU HAVE A FRANCHISE EXPERIENCE UNDER YOUR BELT.

BEST

[Entreprenure 10 jobs]

Fza,

The 2nd part now.

If you are determined to take on a franchise, i would suggest ( assuming outside UK) get a
' pospective entrepreneur' visa come to UK finalize a franchise deal, because t1 visa is one thing, good finacial investment is vital too. To secure your 200k

best wishes

[Fza]

Fza,

First things first, krishna and your conversations are fine.

In 2011 i had thought i will have an accountancy audit office, being a qualified accountant and made a bp accordingly. Because i knew ALL to do so.
REMEMBER BP MUST BE OF THE BUSINESS YOU ARE FULLY AWARE OF, AND EXPERIENCED AND OR QUALIFIED TO DO. YOUR PREVIOUS WORK EXPERIENCE REFLECTING THIS GETS YOU AHEAD ON PAPER AND INTERVIEW.

1. When i came here i realized Accontancy audit is not viable, and did not need 200k anyway. So after much research switched my investment into montessori schools.

2. There is NO restriction to do so per policy.

3. Anyone / everyone will contact say burger king and plan taking a franchise. But no experience qualifications to do so.

So put youself in the visa officers shoes, ???????

A friend planned a jewelery trade in the uk, being the family business he had tons of experience, got t1, came to uk and now runs a few burgerkings being more feasible...

Thoughts that might help, not suggesting to intentionally mis represent, BUT YOU BP MUST BE YOUR BP NOT BORROWED OFF A FRANCHISE. UNLESS YOU HAVE A FRANCHISE EXPERIENCE UNDER YOUR BELT.

BEST

Dear friend

Thanks alot for your help

Thats also a good option. However I have already been director of a factory and in the franchise that I am considering my role is a director as well and I will have to employ a business manager who runs the business that in aspects that needs experiance and my franchisors clearly claims that no previous experiance is needed in this field. So do u think by all these the officer will still be reluctant? Specially that I can creat 5 to 6 jobs.

About BP if I take a franchise they will want me to follow their BP. If I use their BP tailored to my situation and conditions for visa process would that be a probelm?

Would be happy to know your ideas and thanks for ur time

[Fza]

Fza,

The 2nd part now.

If you are determined to take on a franchise, i would suggest ( assuming outside UK) get a
' pospective entrepreneur' visa come to UK finalize a franchise deal, because t1 visa is one thing, good finacial investment is vital too. To secure your 200k

best wishes

Tanks surely will consider that before investing

Just wondering how the HO deals with these franchise businesses for the visa process !! I was thinking because franchise businesses are more likely to succeed HO takes it easier but it seems I've been wrong

[Entreprenure 10 jobs]

Fza,

HO is basically looking at the the 'full' amount invested, and respective 2 or 10 staff in jobs. Which to them is a measure of success.

Franchise in accounting circles is called ' buying yourself a job' the success is limited profits vs a ggod thought thru researched business to go into. Best

[Fza]

Thanks mate