Some of the most profitable franchises in the UK come from a much larger range of industries than many people expect. It’s common for people to assume that the big chains, such as Subway or McDonalds, will be the most profitable franchises overall. However, the problem with big-name brands is that the entry costs can be enormous, putting those types of businesses out of reach for most people.
However, there are so many other franchise opportunities that offer investors a low-cost entry with a far greater return on overall investment. Research published by the British Franchise Association (BFA) indicates that the average turnover for franchise businesses across the UK is more than £250,000 per year. The same research also shows that 97% of franchise owners reported generating a profit in their businesses.
If you’re searching for good franchise opportunities that have the potential to provide a great return on your initial investment, there are some industries that are always in demand, no matter what the economic climate might look like. Some of the more profitable options include:
1. Home healthcare
According to an article published in Forbes magazine, home healthcare franchises are often available at comparatively lower entry costs than many other opportunities. There is also an increasing demand for good quality homecare services, especially since the number of people in the UK over the age of 60 is predicted to triple in the next 30 years.
2. Cleaning services
Cleaning franchise opportunities are available at a low entry cost but have the potential to generate significant profits. Most people automatically associate cleaning services with home cleaning. However, businesses also require reliable, professional cleaners to keep offices and business premises clean, so business cleaning franchises are also a great option.
3. Pet industry
No matter how dire the economy might appear, people are always willing to spend money on their four-legged friends. Grooming, dog walking, pet food, accessories and boarding services are always in demand, but the entry costs for franchise opportunities are relatively low for the potential return you could receive.
4. Financial services
The financial services industry is one of the most profitable sectors in the UK. Finance-based franchises are in high demand right across the country, from mortgage brokers to debt relief assistance, to retirement planning.
Before choosing a franchise opportunity, take the time to search through the options available. A good franchise directory service should allow you to define your search parameters by your preferred investment price. You should also be able to narrow your search results further to only show you available opportunities within your desired industry.
Once you’ve narrowed down your options, take the time to look at the operating fees or franchise costs for that opportunity. You might also want to check any licence costs, and what level of training and support are offered by the franchisors.
Some franchises also offer an income guarantee, ensuring you’ll earn at least a minimum amount of money in your first year of operation. If you have financial obligations to worry about, choosing a guaranteed income option might seem like an attractive option for you. However, be sure you check the fees associated with the guarantee.
The easiest way to find the most profitable franchises is to do your due diligence on the franchise opportunity you’re considering. Look at the financial figures of existing franchises operating in nearby locations and speak to the franchise owners about their experiences working with the company.