Looking to invest?
Finding the right business opportunity can be hard, but finding the right franchise opportunity to invest in is simpler than you might think. Franchiseinfo provides you with all the top UK franchise opportunities in one place. Franchiseinfo’s aim is to help you find the right franchise. Our comprehensive franchise advice, franchise legal dos and don’ts, franchise news, franchise articles and comprehensive list of franchise opportunities provides you with all the information you need to know before taking that step towards buying a franchise.
Link to the British Franchise Association
Franchising your business?
There are many benefits of franchising your business including financial benefits, allowing your business to expand quickly and better market penetration.
If you’re looking for somewhere to franchise your UK business, you’re in the right place. Our site is filled with advice on how to franchise your business and if you want to join the growing Franchiseinfo directory, you can contact our sales team who’ll be able to help you with this.
How do I find a UK franchise?
If you’re looking for a UK Franchise opportunity just enter the Franchise Directory and start searching. You can save opportunities that take your interest or request more information by filling out the form on each profile. The franchisor will then get back to you at the next best opportunity.
Looking for an International Franchise?
If it’s not just UK based franchises that you’re on the lookout for, The International Franchise Directory gives you an overview of international franchising, as well as international franchises, videos and much more. Don’t forget to sign up the IFD newsletter to be kept up to date with all the current offers.
Advantages of Franchising
1. Little to no industry experience is necessary.
While it’s essential to have business acumen, no specific industry experience is required to purchase a franchise. You’re buying into an established business, and the franchisor will provide you with industry-relevant training that will help you develop the necessary skills to succeed at the job.
In the same vein, an additional advantage to purchasing a franchise is that it allows you to explore a career in an industry that you’re curious about without committing to it with your own business.
2. Existing customer base and brand awareness.
One reason people choose to purchase a franchise is that it comes along with an existing customer base and brand awareness that is often tough to quickly develop for a new, small business.
With a franchise, the target audience is already established and active, and since they know what to expect, the decision to do business with you takes less time. As a result, it also takes less time to begin generating profits.
Existing brand recognition also makes it easier for you to attract employees and talent.
3. Lower risk than starting an entirely new business
Purchasing a franchise comes with a lower risk than starting a new business, as the trial and errors of new ventures have already been worked through. With a franchise, you’re working with proven strategies and implementing a process that works.
4. Support from the franchise owner.
Franchisors provide support and training to franchisees to ensure you understand their business model and how the stores operate. In addition, their years of experience will help you build business acumen under their guidance, something not often available if you start your own business.
5. Ample opportunities for expanding your business to different franchise locations.
Another benefit to buying into a franchise is that you have ample opportunities for growth and expansion within the same franchise.
If you’ve found success and enjoyed the process, you can open new locations while still benefiting from the franchisor’s support. You’ll likely also have demand and brand awareness in all the different locations you choose to expand to as well.
Disadvantages of Franchising
6. Limited creative opportunities.
When you start your own business, you have the creative freedom that is not available when purchasing a franchise. You’ll likely have to adhere to the company’s existing rules, so creating a unique marketing mix or designing a unique logo are not options in this business model.
7. Financial information is shared with the franchisor
Financial information is always shared with and available to the franchisor.
If you’re looking for more freedom with finances, this wouldn’t be as possible as it would if you were running your own business. However, this may be an advantage to some, as the franchisor can provide guidance and financial advice if there are issues, again helping you learn from an experienced owner.
8. Varied levels of support.
Franchisors will likely provide support, but some may not. Some may be there every step of the way, while others may give you the essentials and send you on your way.
If you’re purchasing a franchise to learn from an experienced leader, but they don’t provide much, you may struggle more than you’d hoped. Given this, it’s essential to review the contract before signing and understand the level of assistance you’ll get.
9. Initial investments and start-up costs can be expensive
Depending on the business, initial investments can be high. For example, fast-food chain McDonald’s requires a minimum investment of $500,000 USD of non-borrowed personal resources to be considered. This means they expect you to have that much cash on hand that is not from a loan. To some, this kind of investment is not possible.
In addition to initial investments, some franchisors may charge rent if you’re purchasing an existing storefront, require you to handle marketing costs, pay management fees, recruitment costs, service fees, royalties, etc. It can be a significant investment, which can be a drawback to those beginning their business career.
10. Contracts aren’t permanent
When you purchase a franchise, you’ll be required to sign a contract that stipulates a time frame for your ownership. When it ends, the franchisor may decide not to renew your contract. While it likely wouldn’t come as a last-minute surprise, it would require you to spend more time looking for the next venture.
For some, a temporary contract may be an advantage. When the contract ends, you can use your experience with the franchise as a springboard to starting your business.
11. You’re your own boss, but you have less individual control
As mentioned above, you don’t have as much creative freedom with a franchise.
You also don’t have individual control of any other aspects of the business, like opening hours, products, holidays, or even storefront layout. Franchisors have these rules in place to promote consistency in all their businesses, which is why many regulations are strict and not open for interpretation.
So, while you are your boss as you would be for your own business, you’re expected to comply with existing standards.
