Franchising is on the rise: hereís why

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Franchising is growing

Franchising is a relatively new business model, and in the past there were discussions about the longevity of such a business model. However, the rising popularity of franchising suggests that it's here to stay and will continue to prosper. Here, we take a look at the five different reasons franchising is rising to the top with continued success and unstoppable growth.

The current state of franchising in the UK

In the UK, franchising is moving from strength to strength. In the past decade, it has increased by more than 10 percent, and there are now more than 1,000 different franchises operating in the UK and over 550,000 individuals employed by franchises.

It has proven extremely popular amongst younger business owners, who are starting to recognise the advantages of buying into an established business over starting from scratch. As the franchise market has matured and the first few generations of successful franchise owners near retirement age, weíre seeing large numbers of younger franchisees stepping in to take up the reins. This makes it an exciting time for franchising as a whole.

Though itís clear that franchising is becoming an increasingly common business model, understanding why itís experiencing a dramatic upswing in popularity isn't so easy. To help unpick the situation, we compiled this list of the five most important reasons that franchising is on the rise.

1. More varied franchise opportunities

There was a time when franchising was synonymous with fast food chains and large-scale, rapid expansion. In recent years, this has changed considerably. Franchising extends to almost every industry, and the model is applied to virtually any type of business.

While franchising remains a useful tool for large-scale expansion, itís also being used as a means of developing smaller networks that prioritise exceptionally high product, service and customer service standards over quick, boundless expansion. This has allowed a more extensive array of businesses to adapt their structure to become franchise companies.

In many ways, diversification has been the critical factor in bringing franchising to a much broader market. Its association with fast food has been replaced by an understanding that franchising can work in a variety of different contexts and can be used to facilitate the growth of incredibly different businesses.

2. Extensive franchise training programmes

Franchising has also grown in popularity because the majority of franchises offer excellent training programmes and high-quality, ongoing support. In an increasingly competitive job market, individuals understand the advantage of receiving advice, guidance and assistance. A large number of franchisees now view their partnership with a franchise as more than just a job Ė itís also an educational opportunity.

In many cases, popular franchises can deliver incredibly useful, practical training programmes that utilise years of experience and a great deal of expertise. They can help franchisees become proficient in business management, logistics or people management, providing them with the skills they require to go on to succeed on their own.

Letís have a look at some of the franchise partners on our network that are leading the industry when it comes to franchisee training.

Platinum Property Partners

Platinum Property Partners offers a comprehensive training programme to all of its franchise partners that is packed with one-to-one mentoring, head office assistance and a Foundation Letting Course two-day boot camp. Franchisees can learn a load about the property industry from this programme, from how to make a profit to how to work with customers.

But thatís not all. Throughout your franchise journey with Platinum Property Partners, you will have access to a range of training initiatives that include personal development workshops. You can also gain the confidence that comes from knowing that you are being taught by the best in the business; the companyís founders have built Platinum Property Partners from scratch into the fastest growing premium franchise in the UK.


Autoglym is a car franchise that specialises in manufacturing and retailing car valet products. Since 1996, it has been training new franchisees through its tried and tested training programme. This initiative covers every aspect of an Autoglym franchise business, including:

  • Product inventory
  • Sales and marketing
  • Customer support
  • Service orientation
  • IT systems

Autoglymís training programme is accredited by the BFA, so all franchisees can trust they wonít be left short of the right information. While initial training takes place at the franchiseís HQ, this can be followed up with additional market training out of the office.

3. More experience of success

Over the last decade or so, franchising has had an unbelievable success rate. The way that the business model has been marketed has also raised its profile and brought a lot of individuals into the franchising market.

There can be no denying the fact that the franchise model has matured to a point where thereís now a large number of individuals with both franchise experience and expertise. This has given younger franchisees an example to follow and the confidence to enter the system.

By ensuring new franchisees have the backing of talented and experienced older franchisees, demonstrating that franchising can be a hugely successful business model and insisting on increasingly high standards of service, franchising has attracted a new generation of entrepreneurs who are desperate to manage and grow their businesses.

4. Established franchisor brands

Part of the appeal of franchising is that individuals can begin working and growing a business as part of an established brand. Rather than competing with thousands of other start-ups Ė all of whom are offering a similar product Ė individuals can concentrate on making their business work and not obsessively worry about marketing and getting the brand name out there.

For many business owners, the process of creating, developing and publicising a brand is more of a major part of their business plan. While advertising and marketing still play an essential role in most profitable franchises, they are not the be-all and end-all of business for franchisees. Thatís because they are joining an already established brand that has already done the groundwork in building customer awareness.

On the Point Franchise network, there are a number of high-profile companies that are looking for new franchise partners. Letís have a look at some of the international names that you can find in our directory:

Auntie Anneís

Soft pretzel chain Auntie Anneís is opening more and more outlets across the world through its winning franchise model. The company has been on a franchising drive since it was acquired by Atlantor franchisor FOCUS Brands in 2010, and has taken on plenty of entrepreneurial talent in the process.

Though it might feel like franchising has been a part of the fast-food industry since day dot, brands like Auntie Anneís are offering new and dynamic approaches to the business model. For instance, the franchise has started offering finance support from a major broker to help cover your initial investment. Itís moves like this that have resulted in Auntie Anneís winning a string of industry awards, including a spot in the National Minority Franchising Initiativeís Top 50 Worldwide Franchises.

Dunkiní Donuts

Dunkiní Donuts could not have opened 11,000 restaurants across 33 countries without a little help from its franchise partners. The brandís respected franchise package, which has been officially recognised by the likes of Entrepreneur Magazine and the Brand Keys Customer Loyalty Index, has helped several budding businesspeople to make a healthy profit from the coffee industry.

When you open a Dunkiní Donuts franchise, you are leveraging the power of a brand that has a net worth of £2.3 million. With major names like this opening its door to franchise partners, itís no surprise that the business model as a whole is growing in popularity.

5. More of a range of investment entry points

Flexibility in how much you need to invest and who can help you invest in a franchise has also contributed to franchisingís growing popularity. Now, potential franchisees can choose between a business that requires an initial investment of £500,000 and a business that asks for £15,000. The range is enormous and has broken down barriers to entry amongst those who may never previously have been able to afford a franchise.

New ways to finance a franchise

A growing number of financial institutions are partnering with the British Franchise Association (BFA) and established franchises to offer financing packages. In some cases, these banks will cover up to 70 percent of the initial investment in a franchise. All of these factors have resulted in fewer obstacles to those who want to become franchisees.


There exists a wide variety of reasons that franchising has grown in popularity over the last decade. First and foremost, it has demonstrated that itís a business model that can succeed, should basic principles be followed. However, franchises have also worked hard to develop their franchise packages and ensure theyíre making an appealing offer to franchisees. At the same time, financial institutions have begun to recognise the benefit of financing franchisees, and a more substantial amount of funding has become available. Combined, these factors have resulted in franchising expanding to new audiences and converting many business-oriented individuals into the next generation of franchisees.

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