The UK Franchise Market

Franchise Sector still growing: The 2015 Nat West survey into the UK franchise market shows that ·Annual turnover rose by two per cent to £12.65 billion. There are currently 320,000 franchisees 92% of which say they are profitable. "Franchise Market" Contains answers to all the important questions about franchising and why it is successful. Why should you buy a franchise, what should you look for etc. The answers are all here. Best Franchises or Franchising Opportunities

OFanchise Asked Questions


What do I get for my investment?
Each franchise will offer a different package in return for the franchise fee. Typically this will include:
Training course
License to operate under the Franchisor's name
Operations manuals
Business/finance support
EPOS system and other software
Office set up

Help with finding premises if applicable
Specially negotiated supplier terms if applicable
Launch Marketing e.g.:

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How do I secure finance for my franchise?
There are various different optins available to you to gain fanance for your franchise. For further infomation please visit the 'Financing A Franchise' or click here.

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Does the franchise fee have to be paid upfront or can I pay in several instalments?

This will depend on the franchise in question. Some will have payment plans in place whereby you can pay the full fee in a number of instalments. Others may require the full fee to be paid up front before you can begin training/trading.

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Will I need additional investment on top of the franchise fee?

For premises based franchises in particular, you will require additional investment on top of the franchise fee. Most franchisors will also advise that you have some additional working capital to account for the first few months of the business becoming established. For exact amounts, it is important to check with the individual franchise.

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Can I run this business with others i.e. as a partnership or small consortium?

Most franchisors will not have a problem with this though it is best to check as each one is different.

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Can I speak to existing franchisees to find out how successful they are?

Most franchisors will allow you to speak to existing franchisees when conducting your research/due diligence into the franchise. You can then ask them how successful they are and get a clearer view of whether the franchise is right for you.

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What are the projected income figures based on?

Most franchises will allow you to view their accounts prior to purchasing the franchise so that you can be sure that the projected income figures for franchisees are achievable. You can also ascertain this to some extent by speaking to existing franchisees.

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What do I get for the MSF?

The Management Service Fee will usually go towards paying for the support services provided by the franchisor to the franchisee. A support network is a major advantage of buying a franchise over setting up a business alone. There may be a dedicated Franchise Support Director in place for example that will be your first port of call for any problems. It may also go towards ongoing marketing by the franchisor and training events for franchisees. Franchisor's whose success depends on the success of the franchisee in this way, will be more motivated to help you to succeed.

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Will the company help me to find premises?

If you are interested in a premises based franchises, help will often be on hand to help you to secure a location. Many franchises will advise you to investigate available premises within your local area and places you think would be good locations for the franchise of interest. They will often then send a representative from the company to help you to decide which one would be most suitable. Some franchises even have links with commercial real estate agents who can help you to secure leases etc.

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Once I'm a franchisee how will I get my customers?

Each franchise should have proven sales and marketing systems in place which will enable you to generate business. These may include online and offline advertising or leaflet drops for example.

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Do all franchises need to be members of the BFA?

Not all franchises are members of the BFA. It is important to remember that there are approximately 800 franchises in the UK and less than one quarter of these are BFA members. Some will be members of other organisations e.g. the International Franchise Association (IFA) and some may not be members of any organisation.

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What if I buy this franchise and then decide it's not for me?

You must check the franchise agreement and take legal advice and adhere to all the clauses relating to the resale. These should have been reviewed at the time of purchase by a solicitor. Depending on the clauses there are then a number of routes to sell the business: You could use a Business Sales agent or franchise sales company or sell it yourself.

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