Do you dream of owning a business one day? Then, consider franchising. It’s one of the most successful ways to start a business in the UK.
In fact, over the last 20 years, the number of franchise businesses has doubled. The industry has grown by 10% since 2015, and today it’s worth billions of pounds. As a result, finding the right franchise business for sale in the UK is now easier than ever before.
In a world where financial crisis and novel viruses can appear anytime and cripple the economy, it’s wise to invest in already established businesses. You can start your new business by riding the wave of a company with a good support network in place and pre-existing brand awareness.
Here, you will learn about the best franchise opportunities in the UK. But before we dive in, let’s define a franchise and the benefits of investing in one.
What Is a Franchise?
A franchise is a business opportunity where an entrepreneur (franchisee) pays a company (franchisor) for the rights to trade under their name. The franchisee gains the right to the franchisor’s trademarks, business system, marketing materials, and products and services.
Normally, an independent entrepreneur must pay an initial fee to buy into the franchise and royalties (ongoing payments) to keep the right to trade under the company’s name. However, some franchises have additional fees, so it’s wise to research before applying.
Franchising offers you lots of advantages that aren’t available for entrepreneurs who’re starting a business from scratch. Perhaps one of the most significant perks is that you don’t have to worry about building a customer base. Also, you get to work with a proven system of operation and receive training on how to use it.
That said, franchisees are only responsible for running a franchise, but not the business itself. Therefore, they don’t have a say in the direction the company takes.
Benefits of Buying into UK Franchise Opportunities
1. Capital
Most entrepreneurs find it hard to expand their small businesses today because of a lack of access to capital. However, franchising is an alternative form of capital acquisition that comes with endless advantages. First and foremost, business owners can expand their business without the worry of debt or cost of equity.
The capital requirement for most top franchise opportunities in the UK is lower because they often provide the capital to open and operate each franchised outlet. By using the money from the company, the business can grow unfettered by debt.
2. Brand Recognition
Many new businesses fail within their first year of operation because they struggle to create brand awareness. Investing in a franchise prevents you from handling the essential aspects of launching a new business.
Because the franchise has already established itself as a reputable business, you gain access to a large customer base. So, when you open a franchise, customers will automatically know what your business is and what to expect.
3. Buying Power
Another reason entrepreneurs buy a franchise is the sheer size of the network. In a standalone business, owners must pay a lot of money per item when ordering products or supplies since their orders are relatively small.
However, franchises have the advantage of strength in numbers. Therefore, they can get materials, supplies, and services in bulk and at a discounted price. The parent company can use its network to negotiate for location leases, lease terms, and deals.
4. Security and Support
The best franchises in the UK invest lots of money in security and support systems. In return, these systems facilitate the training entrepreneurs receive to manage their businesses and accounts. Also, to track sales, set targets, and creating marketing strategies.
The initial fee and royalties you pay the franchise often cover the cost of all these. It also ensures you can access everything you need to run a franchise successfully.
5. Speed of Growth
Entrepreneurs with innovative business ideas always live in fear that someone else might beat them to the market with their own concept. But that’s a common thing in the business world.
The truth is launching a single unit takes lots of time. So, some entrepreneurs prefer investing in a franchise. This way, they can capture the market early and take the helm before their competitors because the parent company handles most of the tasks.
Through franchising, entrepreneurs gain franchisor financial leverage as well as leverage on human resources. As a result, they can compete with already establish companies and saturate the markets before their competitors can respond.
Industries With the Most Profitable Franchise for Sale in the UK
1. Fast Foods Franchises
Although most people often criticise the fast-food industry, we can all agree that it comes with lots of merits. Many individuals can’t resist occasional burgers, chips, and pizza, even those on a diet. The UK fast food industry is worth £9.8 billion.
burger fast food menu and french fries
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