Ready to Invest in Your Future? 5 Reasons Why Investing in a Franchise Makes Solid Business Sense

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With more and more people in the UK choosing to start their own branch of an established company, the potential advantages of franchising are drawing the attention of ambitious entrepreneurs across the country. In this article we will explore the reasons why investing in a franchise is a good idea and then provide some of our top franchise opportunities to suit both limited and less limited budgets.

According to the 2018 BFA NatWest Franchise Survey, 48,600 franchised units and 710,000 people form the UK franchise market – a workforce increase of 14 percent from 2015. Also, surging by the same percentage is the turnover generated by the UK franchise industry, which reached £17.2 billion in 2018.

37 percent of new franchisees are women, which is a significant growth of 20 percent. And, in the two years prior to 2018, more than one-quarter of new franchise startups were aged 30 or under. These figures suggest that not only is the UK franchise industry incredibly lucrative and growing year on year, but also that more and more young people and women are starting to reap the benefits that franchising has to offer.

So, considering that six in 10 of franchised units are now turning over more than £250,000 (2018 BFA NatWest Franchise Survey), now could be the ideal time to consider investing in a franchise.

5 reasons why investing in a franchise makes solid business sense

Providing the opportunity to join an established brand with a proven business model, the benefits of franchising are clear to see.

1. You’ll operate under a well-known brand name.

As a franchisee, you can make the most of the well-established brand of the franchise. Therefore, you shouldn’t have to spend as much time or as many resources building the brand from the ground up. It should – in theory- be recognised in the market, and already have a loyal customer base.

2. You’re less likely to fail than if you take the independent start up route to running your own business.

The risk of failure is significantly reduced when investing in a franchise. The business idea has already been proven and successfully replicated in a number of other locations. Therefore, you don’t have to be quite so concerned about customers liking your product/service.

3. The franchisor will provide a training package and ongoing support.

When you become a franchisee, you will usually have access to a comprehensive training package that gets you to grips with all aspects of the business. This includes an operations manual that you can refer to at any time. When choosing which franchise to invest in, make sure you scrutinise the training and support package of each potential opportunity. On top of that, it’s a sensible idea to try and speak to existing franchisees to get a true idea of what it’s like.

4. You’re more likely to get support with funding.

Linking back to our second point, as investing in a franchise is considered less risky than launching a business from scratch, banks are often more likely to lend you money to open a location of a franchised business, particularly if the franchise has a great reputation.

5. You often don’t need any previous experience in the sector your entering.

Due to the nature of franchising you can often enter a completely new field. As you will receive all the training you need from the franchisor, you don’t need to worry about already having the required skills. You should still double check each individual opportunity though. While most will only ask that its franchisees are passionate, determined to succeed and hard-working, some will ask for more specific requirements.

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Top franchise opportunities

If you’re interested in running a franchise in the UK, you’re in the right place. Point Franchise provides a detailed insight into some of the world’s leading brands with franchise opportunities.

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You can use the Point Franchise website to establish your search criteria and narrow down your options, searching by location, sector, or investment amount.

Here, you’ll find information about more than 231 different franchises from 171 sectors, operating across 1,552 cities. With such a diverse range of franchises, there is a business to suit everyone, no matter your requirements.

Limited budget

Everyone has to start somewhere, and Point Franchise doesn’t discriminate. There are plenty of franchises across the UK that are available to businesspeople with a limited budget. Here are some of our favourite low cost franchises:

  • One Delivery

With a minimum investment of just £495, this food delivery franchise is eminently affordable. One Delivery provides delivery services in over 65 major cities for fast-food and restaurant brands including KFC, Burger King and McDonald’s. Despite only being launched in 2013, this franchise has already attracted a swathe of franchisees who have gone on to establish more than 100 franchises across the UK. Now, the business fulfils upwards of £1 million worth of orders every month.

Once the One Delivery franchise is up and running, investors can expect to make up to £50,000 in revenue after the first two years. Franchisees who opt to join the business are enrolled into an established induction scheme, which includes a welcome and training pack, as well as the allocation of a dedicated franchise manager.

  • Wilkins Chimney Sweep

Investors can launch a Wilkins Chimney Sweep franchise for just £5,500. Despite offering an inexpensive franchising opportunity, this business is one of the oldest on Point Franchise’s books.

This company has been cleaning chimneys for more than 100 years, having been established in 1895, and it’s been franchising since 2010. Now, Wilkins Chimney Sweep is available across 24 regions in the UK and has expanded to cater for a range of related services, including nest and blockage removal, cages, caps & owls cleaning, CCTV surveys and carbon monoxide alarms.

Some may view chimney sweeping as an obsolete practice. However, the growing interest in conserving the period features of older buildings is bringing the company success once again.

The minimum investment needed for this franchise is £5,500, with the average start-up cost equalling £13,100. In return for their investment, franchisees will be supported every step of the way.

An initial two-week training programme will enable new recruits to gain experience with real customers, after which a one-week course will cover the Wilkins Chimney Sweep business system, operations and accounting. When franchisees have completed this initial training, they will continue to benefit from regional meetings and an annual conference.

Less limited budget

For entrepreneurs with a higher budget, why not consider the property sector? It’s a popular choice among new franchisees, so let’s take a look at two property businesses available at Point Franchise.

  • Northwood

Founded in 1995, Northwood letting and estate agents that operates from over 85 offices across the UK. Northwood has a unique rent system which guarantees that businessowners will not lose income if tenants cannot make their rental payments, letting its properties to a sub-tenant at a higher price and making profit from the difference.

It will cost £50,000 to initiate the franchise process, including the £25,000 franchise fee. Northwood is extremely discerning when it comes to choosing business partners, however, and has implemented a seven-step application procedure in order to single out partners with the personal integrity, financial acumen and personality to match the brand.

Successful applicants will be fully supported, with access to a marketing pack and training to use the Northwood Business System and the company’s accounts software.

  • Century 21

Century 21 offers the chance for investors to join one of the largest residential estate agencies in the world. It’s owned by SDL Group, which offers a range of services including surveying, risk management, auctions, property management, estate agency and insurance broking. Century 21 employs 111,000 sales professionals and operates around 8,000 offices across 81 countries.

For a total investment of £100,000, franchisees will be enrolled onto an extensive management training programme, as well as 1,500 days-worth of annual training and ongoing professional development support.

Century 21 is passionate about moving with the times, and promotes the use of market-leading technology among its franchisees. Industry experience is not essential for new franchisees, as this multi-national company values drive and determination more highly among its new recruits, relying on its comprehensive training scheme to cultivate the best possible franchisees.

Be wise, invest in a franchise

This is article has demonstrated that there is an abundance of reasons why investing in a franchise is a wise business move. Not only are you less likely to fail and therefore more likely to get funding, but you also get to operate under an established brand name and have access to comprehensive training packages. We’ve taken an in depth look at four different opportunities with varying investment levels, but to browse even more of our exciting franchise investment opportunities click here.

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