Converting a Business Into a Franchise Can Keep It Alive

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If you’re struggling to keep your business afloat, you can access proven strategies and expert support through the franchise model. Running an independent start-up is tough, but converting a business into a franchise unit is one way to gain security with a larger organisation.


According to The Telegraph, 660,000 new start-ups are registered annually in the UK. But 20 percent fail within their first two years, and 60 percent close their doors before they reach their third anniversary. If you find yourself facing business closure, there is a way you can continue to pursue your dreams of entrepreneurship. 

Converting a business into a franchise unit will give you the chance to join a company with tried and tested strategies. You’ll invest an initial fee and pay ongoing royalties to build a business under your franchisor’s recognisable brand. Meanwhile, you’ll be enrolled in a comprehensive training scheme and given access to top-quality resources and consultants.



Advantages of turning a business into a franchise unit

1. You’ll adopt a business model with a track record of success

When you become a franchisee, you’ll use the franchise’s proven business strategies. Unless you’re the first investor to join the organisation, your franchisor will have experience helping people establish new branches, and will have ironed out any kinks in the business model. 

Most franchises use time-saving software and online tools to carry out certain tasks and monitor performance. Plus, it’s likely there will already be contingency plans in place for unexpected situations, so you can be confident in your new business. 

2. You’ll become part of a brand with an existing customer pool 

If you join a franchise with several branches already in operation across the region or the UK, you’ll benefit from a high level of brand awareness. Consumers will have heard of the business and know what to expect from your unit. Many will already be fans of your products or services and be keen to buy them without seeing marketing material. 

What’s more, franchisees also benefit from nationwide promotional campaigns, funded and organised by the franchisor. While you may be running a small business in your local community, you could switch on the television and see your brand advertised in an upmarket commercial. 

3. You’ll get access to the franchise’s purchasing power

As a small, independent start-up, it’s unlikely you’ll be able to negotiate many money-saving deals with suppliers. But when you convert your business to a franchise unit, you’ll suddenly be part of a larger corporation. 

As most franchisors specify the suppliers' franchisees can use, the business as a whole will submit a high volume of orders to certain manufacturers. As a result, the companies providing the goods may be willing to offer a discount to thank franchisors for their business and keep them interested. 

4. You’ll get help to grow your business

Franchising is all about business growth, and your franchisor will be able to support you as you develop your unit. Not only will they help you set up your office or store, but they may also lend a hand when it comes to hiring a workforce and adding extra income streams. 

The more successful you are, the more successful your franchisor is and, depending on your royalty structure, the more money they make. So, they’ll almost certainly be keen to help you expand your operations. If you choose to launch additional franchise units your franchisor will probably be prepared to help you find suitable locations and get set up. 

Other reasons to use the franchise model

Franchises offer fantastic opportunities for entrepreneurs struggling to make ends meet, but there are also a whole host of reasons why adopting the model is a great choice more generally. 

  • Franchises offer flexibility - As the owner of an independent business, you may feel you spend too many hours worrying about your operations, resulting in a poor work-life balance. Many franchises can be run part-time and from home, with the option to adapt your work schedule to fit in with your lifestyle or existing commitments.

  • There are turnkey models available - Some franchises provide a ‘turnkey’ opportunity for investors who’d like to skip some of the usual set-up steps. If you choose this route to business ownership, you may not have to refurbish your premises, buy initial stock or train staff, so you can start trading from the get-go. 

  • Business owners can further reduce risk - When investors put their money into a franchise business, they know it has seen success on a regional, national or even global scale. But they can never be sure the model will work in their specific territory. If your existing business and planned franchise unit belong to the same sector, you will have already identified the level of demand for the product or service you will offer. For more information, read 6 Signs Your Local Area is Ready to Welcome Your Franchise Business

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Is my business ready to franchise?

If you’re thinking about converting your business into a franchise unit, there are several options available to you. 

  • A co-branded business: Some franchisors allow business owners to sell their franchise’s products or services alongside their own offering. This set-up is common in licensing agreements. 

  • Entire conversion to a franchise: The more conventional way to join a franchise as an existing business owner involves moving your entire operations over to the franchisor’s model. You’ll remove any current branding and adhere to the franchise’s strategies and regulations. 

Of course, you’ll need to make sure you have all the right attributes to become a franchisee, as well as review your ambitions for your business. You must be willing to follow the franchisor’s rules; find out more about the top five qualities of a successful franchisee to find out how you can prepare for investment.

Continue your research

Point Franchise has a wide selection of business guides to help investors make the right choice. You can learn more about the process of launching a franchise unit with our Become A Franchisee articles

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