Learn About Franchise Opportunities in the UK
Date : Jul 21, 2021
Author : Isaac Addo
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
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.
READ ALSO: 5 FRANCHISE OPPORTUNITIES IN THE UK FOR 2021
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.
In the UK, fast foods brands like K.F.C, McDonald’s, and Starbucks are some of the biggest and most lucrative franchises. These franchises offer good returns and well-established brand awareness.
As part of one of these franchises, you will enjoy the perks of joining a reputable company with a footing in the industry and a guarantee of operating a successful business.
Since the fast-food industry is ever-expanding and diversifying, you will benefit from the support of the parent company that has knowledge and expertise in staying on top of a competitive market.
However, there’s a downside, the buy-in price for these franchises is expensive. For example, to buy a McDonald’s franchise you have to spend over £30,000, and it’s still growing.
2. Fitness Franchise
Entrepreneurs with health and nutrition knowledge should consider buying a fitness franchise. We are living in a world where conditions like obesity and diabetes are common. This means most individuals are on the lookout for health and nutritional help to maintain a healthy lifestyle. Also, it’s hard to miss people working out in the gym.
3. Home Care Franchises
Over the years, the number of elderly people has increased exponentially in the UK, especially those aged 80 and above. Therefore, there’s an increased need for home care services to provide care and assistance to sick seniors and those with disabilities or mobility issues.
The healthcare industry is expanding rapidly, so if you’re a caring and dedicated entrepreneur, opt for franchise opportunities in this sector.
Low-Cost Franchise Opportunities in the UK
1. Pest Control Franchise
A pest control industry is not something most entrepreneurs would automatically consider as a new business venture. But if you’re after low-cost franchises UK-wide, this market will better suit you.
The pest control industry has grown at a steady pace over the years because of the increasing demand for pest control services in the country. Furthermore, creating a pest control business from scratch is difficult. You must meet certain requirements and follow several laws. Also, your solution must be effective, or you will lose your customers.
But when you become a franchisee, you will receive the training and products to deliver long-lasting results. Besides that, the parent company will help you get the business off the ground and running legally.
2. Cleaning and Home Improvement Franchises
Over 5.4 million businesses and 27 million households in the UK depend on cleaning services. Thus, it’s a profitable industry.
Today, most people get tied down with work and other responsibilities, hence, they don’t have enough time to clean their houses. That’s where professional cleaning companies come in. So, investing in a franchise in the cleaning industry is a wise decision. What’s even better it’s affordable and highly profitable.
4 Top Franchises Opportunities in The UK in 2021
1. Doctor Drain
Doctor Drain is perhaps one of the UK’s largest drain clearance and emergency plumbing companies. The company boasts a reputation of having reliable and trustworthy technicians who deliver high-quality plumbing services at an affordable price around the clock, all year round.
Its franchise model allows franchisees to lead and motivate their teams of expert plumbers and drainage technicians so they can succeed within their locality. If you invest in the franchise, rest assure you will have a steady flow of work and income since they have contracts with big companies like Wetherspoon, DHL, and Nando’s.
You will need about £86,000 plus VAT to buy the franchise. As a franchisee, you stand a chance of earning over £1 million yearly. Also, the company will provide you with ongoing support and mentoring. The best part, you don’t require prior plumbing experience because you won’t be handling any plumbing or maintenance work; you will only run the team.
Subway is a popular fast-food restaurant known for its tasty sandwiches. It is one of the best franchises to own in the UK because it has the lowest startup costs of about £8,500.
However, the total investment can balloon up to £200,000, depending on the franchise location. Apart from that, franchisees must pay 4% of their net sales towards the marketing fund and 8% towards royalties.
Franchisees will benefit from a two-week training program offered by the parent company. Also, they enjoy continuous support and mentoring. The franchise contract runs for about 20 years.
3. Anytime Fitness
The persistent COVID-19 pandemic and its subsequent lockdown, means most gyms have closed in the UK. But that won’t be the case forever. Anytime Fitness provides budding healthcare and nutrition franchisees in the UK and the opportunity to generate income throughout the year via their franchise model.
You will enjoy a 5- or 10-year contract with a company that has an impressive track record and extensive support. You don’t have to pay any royalties, but the total investment can surpass £550,000. Also, you need an initial upfront fee of about £170,000.
Our list will not be complete without mentioning the world-renowned fast-food chain restaurant across Europe and the globe. McDonald’s is a highly profitable franchise, but it’s ideal for entrepreneurs with enough investment capital.
The startup cost is at least £100,000 upfront. However, the total investment cost can run up to £ 350,000. Also, entrepreneurs must direct 5% of their net sales towards royalties and 4.5% to advertising funds.
Just like Subway, the contract can run for 20 years with a promising yearly return of about £50,000. In addition, franchisees will enjoy comprehensive support and a 26-week training program to get the business up and running.
UK franchise opportunities offer budding entrepreneurs a way to start a profitable business without the hassle of establishing a strong consumer base from scratch. Franchisees enjoy numerous benefits, including working with an established brand while receiving continuous mentoring and support.
That said, explore the listed franchise opportunities in the UK, and find the one suited for your needs. Keep in mind, it’s wise to seek financial and legal counsel before investing in any franchise.