Franchise Opportunities
There are 930 franchise opportunities in the UK according to the NatWest British Franchise Association (bfa) Franchise Survey 2013, contributing £13.7 billion to the UK economy. The range of franchises is quite literally astonishing, with franchise brands in areas of business in every imaginable industry.
INTRODUCTION
Franchise opportunities are perfect for those who are looking for the freedom to run a company, without the added risk.
Essentially, it means taking on the management of an existing company branch, such as McDonalds, Subway etc. You buy the rights to run the shop or facility from your local area.
You’ll report to the head office, and receive support directly. However, to all intents and purposes, you’re running your own business. It’s a brilliant middle ground for entrepreneurs who don’t have the capital or aren’t willing to take a big risk.
You’ve probably been into a franchise already today. They are the cornerstone of business. In fact, there are hundreds of franchise opportunities based in the UK. Any company that has locations in more than one city is probably a franchise business.
All your favourite chain fast-food restaurants, cafes, and businesses are franchises. So, how exactly do you find your own opportunity and buy into an existing franchise? Franchise Info will take you through the process, and show you how it all works.
WHAT IS A FRANCHISE OPPORTUNITY?
There are two paths into business ownership. The first is coming up with a business idea yourself, funding it, and starting a company from the ground up. It’s hard-work, expensive, and incredibly risky.
The second option is buying into an existing franchise. Let’s use Subway sandwiches as an example. You can buy the rights to use the Subway logo, recipes, and assets.
You’ll set up shop in your home town, and the head company will provide some support in terms of marketing and training. You’re usually given deadlines and targets. But other than that, you’re free to run the business yourself.
A franchise opportunity is deemed to be one that:
- Involves a trademark, a method of trading and a licence to use the trademark, which all franchisees must adopt and pay for.
- The franchisee will be sell onto a third party with the benefit of the goodwill derived form developing the business over time
- Is actively franchising
OTHER TYPES OF FRANCHISE OPPORTUNITIES
FRANCHISE RESALES
It’s not unusual for a franchisee to sell on their franchise after 5 years or so – often to invest in a different franchise, retire or begin a new venture. This type of franchise is known as a resale. A franchise resale can be a good investment as the business is already trading, enabling growth to be quicker which can save and cost. It will also have brand presence and customers in its local region so you could hit the ground running. This does mean that franchise resales will normally need a higher investment than if you were setting up a franchise from scratch.
Browse our full range of franchise resale opportunities.
MASTER FRANCHISE OPPORTUNITIES
There are many franchise opportunities across the world that are highly successful, have a proven system and considering launching in another country via franchising. Many will look for a partner – a master franchise – based in that country, with experience of the industry, market and with proven management skills. The master franchise will effectively step into the role of the franchisor in that country.
INTERNATIONAL FRANCHISE OPPORTUNITIES
Using the franchise model is a common practice for international businesses looking to expand into new territories and countries. These can represent a great opportunity to bring a totally new brand to a new market but the confidence and support of knowing the business has succeeded elsewhere in the world already. If you have the knowledge and understanding of your local market and the business environment in your country then there is the potential to build a mutually beneficial relationship with international franchises looking to establish themselves in your location. Explore our selection of international franchise opportunities.
FINDING GREAT FRANCHISE OPPORTUNITIES
Now that you understand how a franchise works, how do you find a good opportunity? First of all, our website is a great place to start. We display tons of info about franchising opportunities in the UK from coffee shops to hair salons. Find an industry you love, and that’s a great place to start. If you’re passionate about coffee, make a list of the available coffee shop franchisors. Each will have a brochure for prospective franchisees, so take a look. Analyse the company from the inside out. Do they have a strong history of franchise success? Do they understand their competition, and have they outlined a strong business plan? What are their finances like, and do they provide support to their franchisees? Use these criteria to narrow down your field, and find the perfect opportunity.
SUPPORT FROM YOUR FRANCHISOR
I mentioned briefly the potential support system from the franchisor. It’s a crucial part of deciding which particular business to choose. The best franchises have a wide support system starting very early in the process. You can look for past experience here, or simply ask about the support system. It should all begin with training. If you’re buying a franchise, you probably have a managerial past, and some experience. However, every business has a particular way of operating. A good franchise opportunity takes you through the training process step-by-step.
MARKETING AND ADVERTISING SUPPORT
In addition to training and development, the best franchisors support their franchisees with marketing and advertising power. They can call upon their enormous bank accounts to help you build the brand in your area. It’s one of the things that makes franchising such a risk-free opportunity. Rather than drawing from your own pot to market the company, you draw from an existing business. Plus, you have the benefit of existing brand recognition. When you’re looking for the perfect franchise opportunity, make sure there is marketing and advertising support in place.
ENTREPRENEURIAL FREEDOM
I always find the most successful franchises strike the perfect balance between support and freedom. I’ve talked about the benefits of support in both development and marketing. Now, let’s look at the notion of entrepreneurial freedom. If you’re thinking of buying into a franchise, you probably have an ambitious, entrepreneurial personality. You also know your local area inside out. For that reason, you’re expertly placed to use your own tricks and techniques to benefit the business. A good franchisor will let you tap into that, and make your own decisions. When looking for a new opportunity, look for one that gives you that freedom.
MONEY
We’ve made it this far without discussing money, but let’s not forget the elephant in the room! Although the support system is in place, starting a franchise still requires money. Opening up a new place can set you back roughly £5,000-£25,000. (Though, we’ve seen startup costs in the £100,000s before.) When choosing your franchise opportunity, make sure you take this into consideration. Balance the startup cost with the potential risk-factor. Ensure you have enough set aside to cover those costs and budget an extra 50%. You never know what other costs will arise, and it’s always worth having an emergency pot. Lastly, remember there’s a reason why prices vary. Don’t always assume the cheapest franchise opportunity is the best. In fact, that’s rarely the case. The more expensive a franchise, the more support you’ll likely receive. Take a look at our Franchise Finance Advice section for more detailed analysis of the financial considerations involved in investing into a franchise.
MINIMISE THE RISK
If you’re looking for a franchise opportunity, you’re looking to minimise the risk. Perhaps you’ve got a family, and you’re looking for a stable way to indulge your entrepreneurial side. If that’s the case, look for the most risk-free opportunities. That usually comes from the big-name franchises. If you’re looking to run a business, but without the sleepless nights of entrepreneurship, try franchising. Choose the right opportunity, and go for it!
Good luck.
