What People Don’t Know About Franchising in the UK

In fact, franchising offers one of the most reliable, scalable, and flexible business models in the UK, yet it remains widely misunderstood. Despite its growing popularity and economic impact—contributing over £17 billion to the UK economy—franchising is still subject to myths, half-truths, and a lack of public awareness. Whether you’re a would-be entrepreneur, an investor, or even a business owner considering expansion, here’s what most people don’t know about franchising in the UK.

Franchising Is Not Just for Food Businesses

Perhaps the most common misconception is that franchising is all about burgers, sandwiches, and coffee. While food franchises are highly visible, they account for only a portion of the UK franchise landscape.

There are thriving franchise models across dozens of sectors, including:

• Home care and elderly services (e.g., PerCurra, Home Instead)
• Children’s education and activities (e.g., Kumon, Stagecoach)
• Automotive repairs and mobile valeting (e.g., ChipsAway, Autosmart)
• Cleaning services (e.g., Fantastic Services, Molly Maid)
• Property and lettings management (e.g., Belvoir, Northwood)

From dog walking to digital marketing and from event planning to tutoring, if there’s a business that solves a problem, there’s probably a franchise doing it—and succeeding.

You Don’t Need to Be an Expert in the Industry You Join

One of the biggest hidden benefits of franchising is that** you don’t need to have prior experience** in the industry. In fact, many franchisors prefer franchisees who come with fresh perspectives and are coachable.

A good franchise will train you thoroughly. They’ll teach you how to operate the business, manage your territory, attract customers, and deliver the service to their standards. The model is designed for replication, so you plug into an established brand and proven systems. This opens up opportunities for career changers, early retirees, or corporate professionals looking to run something of their own without starting from scratch.

Franchising Regulations

Unlike in the United States or Australia, there is no formal franchise-specific law in the UK. There’s no requirement to register a franchise, no compulsory disclosure document, and no governing franchise ombudsman.

This might surprise many would-be franchisees who assume there’s a regulatory safety net. While the British Franchise Association (bfa) plays an important role in maintaining standards, membership is voluntary, and some reputable franchises operate outside it.

What this means is simple: Due diligence is critical. The lack of regulation makes it even more important to: - Read the franchise agreement carefully - Conduct independent research on the franchisor’s track record - Speak to existing and former franchisees - Consult a solicitor who understands franchise law

Not All Franchises Are Equal

Just because a business is offering a franchise doesn’t mean it’s a good one.

Some franchises are new and still ironing out their model. Others are well-established but provide minimal support. And a few—fortunately a small minority—are more focused on selling licenses than building a lasting franchise network.

Here’s what separates strong franchises from weak ones:

• Proven profitability across multiple territories
• Strong brand recognition or market niche
• Comprehensive training and support
• Marketing and lead generation systems
• Transparent communicationand access to other franchisees

The best franchises don’t just want your investment—they want a long-term partner.

Franchise Fees Are Just the Beginning

Many prospective franchisees focus on the initial franchise fee and overlook the full cost of entry. The franchise fee typically covers your license to operate, training, and launch support—but it’s only part of the picture.

You’ll also need to budget for: - Equipment or stock - Fit-out (if there’s a physical location) - Marketing and launch costs - Ongoing royalties or management service fees - Working capital for at least 6–12 months

That’s why you’ll often see “total investment” figures far higher than the entry-level fee. Being undercapitalised is one of the biggest reasons new franchisees struggle, even in good systems.

Franchising Is Not a Guarantee of Success

While franchising reduces risk by offering a proven model, it doesn’t eliminate it. Running a franchise is still running a business. You still need to: - Market your services - Hire and manage staff - Deliver excellent customer service - Monitor finances and cash flow - Follow compliance and operational systems

A successful franchisee is someone who follows the system, works hard, and builds local relationships. Franchising gives you the framework, but you still have to do the building.

There Are Resale Opportunities—And They Can Be Very Smart

Not all franchisees start from zero. Many buy an existing franchise that’s up for sale—known as a resale.

A resale gives you:

• An existing customer base
• Local brand awareness
• Historical financial data
• Staff and operational processes already in place

Resales can offer a faster return on investment, but you’ll often pay a premium for that advantage. Still, they can be ideal for people who want a running start, especially if you have business experience and want to grow quickly.

Franchising Is a Route to Multi-Unit Ownership

People also underestimate the scalability of franchising. Many successful UK franchisees don’t stop at one location or territory.

They go on to:

• Own multiple units (e.g., several fast food outlets)
• Expand their territory
• Employ local managers while stepping back from day-to-day operations

This is particularly appealing for investors or entrepreneurs who want to build a business portfolio, not just a job. Some even create family-run franchise empires.

You Can Franchise Your Own Business

Most people think franchising is something you buy into—but it can also be something you offer. If you own a business with a repeatable, profitable model, franchising could be your next growth move. It allows you to expand into new regions without borrowing or hiring extensively.

But franchising your business isn’t simple—it requires:

• Standardised operations manuals
• Franchise agreements and legal infrastructure
• A robust training program
• Brand strength and replicable marketing
• An ability to support franchisees on an ongoing basis

Many businesses partner with a franchise consultant to explore this route and create a franchise model from the ground up.

Franchising Offers Lifestyle Flexibility (But It’s Not a Shortcut)

A big attraction of franchising is the promise of work-life balance. Many franchises offer home-based models, flexible hours, or management-style businesses that can eventually run without you.

But make no mistake: in the early stages, you will work hard. The flexibility comes after you’ve built the foundation.

That said, for many people, franchising offers the best of both worlds: - Independence and ownership - Structure and support - A path to time freedom, but earned through effort

Final Thoughts: Is Franchising Right for You?

Franchising in the UK is full of potential, but it's not magic. The more you understand what franchising really involves, the better your chances of choosing the right opportunity and succeeding with it.

If you're exploring the world of franchising, take the time to: - Research different sectors - Speak to multiple franchisors and franchisees - Understand the financials fully - Think about how your skills match the opportunity - Consider whether you’re buying yourself a job or building a scalable business

Franchising isn't a silver bullet—but for the right person, with the right opportunity, it can be a powerful way to start or grow a business with confidence.

Need guidance on selecting the right franchise or exploring if your business could become a franchise? Connect with a franchise consultant for a free discovery session and take the first step toward building something bigger.

Richard Pakey Franchising expert and Managing Director Lime Licensing Group