Often when we think of franchising big companies come to the forefront of our minds such as Starbucks or McDonald’s, but we don’t always see the everyday businesses as franchises.
In fact, according to Franchise UK the number of franchises has more than doubled in the last 25 years to now stand at 48,000 units, contributing to around 710,000 jobs in this sector. A study from Natwest also highlights that the UK franchise market shows an astonishing 92% of franchised companies running profitably.
Why is the UK franchise market so successful?
The UK franchise market shows to be a profitable opportunity and is also quickly growing. Currently the franchise sector generates over £15 billion in revenue, with an increase of 46% over the past 10 years. We have also witnessed that the UK franchise market is able to withstand the recession as there was noted to be a 70% increase in the number of people employed by franchises in the years 2006-2016. So why is the UK franchise market popular?
1.The franchise opportunities are more diverse
We can see that franchising has expanded to almost every industry, and most types of businesses, in fact many businesses used franchising as a way to develop and expand their business on a large scale. There are currently over 900 franchises to choose from within the UK, and the cost of investment could be anywhere between £1,000 – £500,000. This paves the way for investors who have less expenditure to work with, but the motivation to run and operate their own franchise. As a result, there are now an abundance of franchising opportunities available across many sectors, with little barriers to entry.
2.More varied investment opportunities
As mentioned previously, the starting cost for a franchise within the UK starts out as little as £1,000, due to the sheer amount of variation of franchises available in the market. Entrepreneurs of all walks of life are now able to invest in a franchise despite any budgetary constraints, and are given the opportunity to thrive in the market.
3.The UK market has more established brands
As with all franchises, risk is depleted as you take on an existing brand, with a proven track record for success. The brand awareness which comes with a franchise is already there, therefore customers are more likely to flock to your business just from the name or logo alone.
With the stability of the franchise model, there are more loan opportunities for those who are seeking the extra help to get started. People who are looking to get investment for their prospective franchise can in some cases have banks cover up to 70% of the franchisee’s initial investment.
4.Training for the role
Franchising can owe part of its rapid growth to the large increase in quality of training schemes provided to franchisees. The vast majority of franchise options available today do not require any previous experience in that industry, as they provide all comprehensive training.
The training available to franchisees is not limited to that franchise either. Franchisees are now given full training opportunities on the logistics of running their own franchise, as well as business management and people management training, allowing you to become your own boss successfully. There are often also mentors amongst the franchise network who will provide specialised advice and help as and when the franchisee needs to ensure a successful start.
If you are thinking of investing in yourself and becoming your own boss, come along to the International Franchise Show on the 1st and 2nd of October at the ExCeL London. Find your free tickets here: https://www.thefranchiseshow.co.uk/registration
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