Every year, hundreds of people choose to buy a franchise rather than start their own business from scratch. Buying a franchise allows you to experience all the professional freedom and rewards associated with running your own business but without the stress of starting from square one. It's business with a safety net.
As a franchisee, you are supported by a well-known, established brand, a team of people who have extensive industry and business experience between them and, of course, your network of fellow franchisees.
You are able to draw on the skills and expertise of a reputable operator and their team, who will support and guide you in key aspects of business management including sales, marketing and finance. Invaluable if your skills are limited to some but not all of these disciplines.
You will control your own time, be your own boss, select the people you want to work with and be recognised as a successful business person within your community.
- Be your own boss – you decide your own working hours and who you want to work with.You will find a greater sense of independence with a greater level of security due to the backing of a well-established brand
- Reap the rewards of your hard work – the more time and effort you put into your franchise, the greater your income
- A proven business model – you know that you are replicating a business model that works because other franchisees have been successful before you
- Funding – banks are more likely to lend money to invest in a franchise that has a good reputation for success than they are to a start-up, unproven business
Despite the recent economic downturn, franchising in the UK is continuing to expand and has an annual turnover of around £12.4 billion. Franchising is based on tried and tested business formats and established track records of success. Over 80% of all new franchises remain in profit after two years of trading. Franchising offers you more security and a higher probability of success than ‘going it alone’.
Natwest Franchise Survey
Natwest published the results of their survey on the franchise industry and overall, the picture is of an industry sector in rude health which continues to prosper. The survey highlights were that the contribution of franchising to the UK economy is now reckoned to be £15.1 billion, an increase of 46% over the past 10 years and up 10% since the last survey in 2013.
The total number of people employed in franchising in the UK is 621,000, of which 321,000 are in full-time employment.
- This equates to an increase of 70% over the past 10 years
- The number of franchisee-owned businesses has increased by 14% in two years, to 44,200. On average, those businesses are also becoming larger as the sector matures:
- Average turnover continues to rise and over half now claim an annual turnover of more than £250,000
- Employment per unit continues its upwards trajectory, with one-third now employing 10 or more staff
- A record 97% of franchisee-owned units reported profitability, with 56% saying they are ‘quite’ or ‘very’ profitable.
- Ownership changes in franchisee businesses are correspondingly low (4.6%), with failure rates much lower than for other SMEs generally
- Franchisees’ satisfaction with their franchisor has never been higher, with 91% saying they are ‘mainly’ or ‘definitely’ satisfied.
- Some 29% of franchisees now run multiple units.
- 80% of franchise brands in this country are UK-owned and developed.
- One in five franchisees who launched their business in the last two years was under 30 years old when they did so.