The truth about franchising


Lower risk

When buying into a franchise, owners have the guarantee of knowing that they are investing into a tried and tested business model, lower failure rate and financial risk. The majority of independent companies go out of business within their first three years of trading, while a franchise will have a proven track record and successful business model which is essential when recruiting potential franchise owners.

Established brand

One of the main benefits of investing in a franchise is being able to operate your own business and be your own boss while receiving support and guidance from an experienced and recognised brand. When launching your business, recognition plays a massive part because potential customers are likely to recognise the name and logo and should understand the values that these represent.

Training & support

Along with the brand name comes the brand’s policies. Most franchisors will provide new owners with comprehensive training, support and any business materials that may be required. Franchisors offer new owners ongoing support, ensuring that staff are kept up-to-date with any developments and are able to seek help when needed.


The franchise industry has a wide range of investment opportunities on offer, which can be run on a full-time or part-time basis from home or commercial premises at hours to suit the needs of the business and the franchise owner. There is an opportunity out there to suit everyone.

Supportive network

The franchisor will offer training and the benefits of its experience, offering advice every step of the way. Franchise owners also benefit from the franchise network, where colleagues can support one another and offer each other advice and guidance.

Finance your investment

The 2014 NatWest and British Franchise Association (bfa) survey found that estimated start-up costs for new entrants to be around £46,000 in franchise fees.

High street banks have shown their commitment to the franchise industry and even have specially trained franchise managers to assist new and existing franchise owners with financing their businesses. There is typically a 90 per cent success rate on applications for franchise loans.

Growth opportunities

The opportunity for franchise owners to invest in multiple franchises is quite common in this sector, enabling individuals to widen their market and progress the franchise.

Job satisfaction & security

When entering into a franchise, individuals have to consider their own personal skills and interests. In most cases, franchise owners invest in a franchise, which they feel passionate about. It will be hard work running a business but when it’s for a company and a brand that you believe in it makes the effort worthwhile.



When you start your own business, you're in control over every detail, large and small, but with a franchise business, you sign an agreement to follow the rules laid out by the franchisor. You do control your franchise unit in terms of the culture and values you set your staff, but you must follow the franchisor's operating system.

Initial layout

When entering into a franchised business you pay your initial investment, which in some cases – especially if the franchise requires business premises means working capital may be needed as well as additional franchise fees.

Additional costs

Prior to investing in a franchise, it is important to realise that as well as the initial franchise fees, you will be required to pay ongoing fees to the franchisor. These are usually paid either as a percentage of your turnover or as a specific annual sum.

Normally this money will go towards ongoing training and support programmes, such as a national marketing campaigns or training courses, to ensure you have the latest skills and information needed to run your business successfully.

While franchising may offer many benefits, you must carefully research your chosen franchise opportunity before signing on the dotted line, as there will be some aspects of franchising that will not suit everyone’s work ethic.