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10 Reasons to Invest in a Franchise

If you’re at a point in your life where you’re rethinking your career, rest assured there are people like you in exactly the same situation. While some have continued as they are now, depressed in an employment trap, some are now business owners — and some are franchisees.

Franchising is a way of getting into self-employment, running your own business, but as the branding of an already established one. One such example is McDonalds, but others include popular brands such as Husse, Tubz Vending, Coffee Blue, Pirtek and many more.

If you’re looking to be your own boss, then read on about why franchising is a fantastic option.

1) Everything You Need — Provided

Franchising offers a business-in-a-box.

As you’d expect — and this is the same with starting up a business from scratch — you’ll need money. Although this might seem like a disadvantage here, it really isn’t. In exchange for the upfront franchise investment, you’ll receive everything you need to set up the business. The investment could be anywhere from a few hundred up to £50,000 maybe £100,000+. It depends on the franchise.

But in exchange for that investment, which you should make back (break even) after a few months, you get absolutely everything you need to start up the business. That includes training, support, marketing materials, business-specific equipment — and a proven, established brand name.

If you were to start up a business from scratch, the costs would be similar if not higher because you may run into beginner mistakes. Investing in a franchise means everything is in place. Because that’s what franchising is — scaling an already successful business.

2) Many Different Opportunities

What can you see yourself doing? Do you love pets? There are franchises for that. From dog walking to pet sitting, pet food suppliers to dog washing. There are people out there already trading as franchisees. You might have already seen franchises such as Dial a Dog Wash, or Trophy Pet Foods. If you’ve seen them, its proof of a successful franchise.

Maybe you like storefront or van based food and beverage? There are many coffee and cafe franchises out there, offering diverse packages to suit any budget. From mobile coffee van franchises like Really Awesome Coffee to Coffee Blue and Triple Two Coffee.

There are so many franchised businesses out there. With over 1,000 active franchises in the UK and global ones offering master franchises to UK entrepreneurs, there is so much to choose from. Why reinvent the wheel when there are businesses out there looking for people like you to bring their brand to your area?

3) Up to 70% of the investment — provided

Franchises are favoured by many banks because of their higher success rate over their solo startup counterparts. Some banks in the UK can lend up to 70% of the franchise investment! More and more banks are establishing franchising departments to better help the franchising sector, as it becomes more and more of a preferred option for getting into business.

You will of course need some working capital to keep the business running during the first few months. Eventually your starting stock and marketing will be exhausted and you’ll need some cash aside to keep this working until you recover your initial investment. Once this is done, you’ll be profiting.

4) Franchising Offers Flexibility

One of the main benefits of being your own boss — and probably one of the reasons you’re even considering business ownership — flexibility.

Being your own boss means you can work your own hours, and many franchises offer the flexibility to work from home. So you can take your kids to school, spend time with your family — all of the luxuries employment fails to reward you with.

Yes it sounds too good to be true, but with most franchises it isn’t. Although owning a business is a big step, and will require huge commitment, once the business is running so long as you have the drive and motivation to make it a success, business ownership really does offer flexibility.

Many franchises can be run on a part time basis. Such as cleaning franchises (and management franchises where you never do any cleaning yourself).

5) A Career You’ll Love

If you do something you love, there’s a good chance you’ll be successful. You’re more likely to be successful when you’re doing something you enjoy. Whether it’s cat sitting for clients (like The Cat Butler Franchise), or putting a smile on childrens faces with baby sensory and music franchises, being in business for yourself comes with many rewards.

6) Full Training and Ongoing Support

Another key benefit over starting up a business alone, is that you’ll receive all of the training and support you need. This forms part of the initial investment. So that’ll be either online, in person or residential training covering aspects such as day to day running, financial and accounting, staff recruitment and of course business ownership.

Ongoing you’ll likely pay a management service fee — a monthly fee to the franchisor which covers continued access to support as well as contribution to national group marketing for all franchisees, and research & development. The ongoing fee will usually be a fixed amount, or a turnover percentage.

7) Unlimited Earning Potential

With franchising (and business ownership), there is no employer to tell you how many hours you should be working. If you want to spend a few extra hours in the evening doing some marketing or boosting your sales, its entirely up to you. If your mates having a wedding and you want to bring your coffee van along, again — entirely up to you. So long as you operate within the bounds of the franchise operations manual and the franchise agreement, franchising still offers considerable flexibility.

Although there may be some territory restrictions in place (so that neighbouring franchisees don’t steal your own territory’s clients), an attractive franchise will be one that offers large territories. Check with the franchisor to learn how big your area will be. The bigger the territory, the bigger the earning potential.

8) A Proven Business Model

If a business is franchising, there’s a good chance the initial business has been a success. Franchisors will usually redouble the affirmation of the business’s success by opening a pilot franchise — a first attempt at reproducing the business under franchising conditions. Making sure the operations manual works, and the procedures are effective.

Many people invest in franchises because of the security and support, knowing that the brand is a success and the more franchisees that come on board, the more the brand name resonates. The more franchisees that join a franchise network, the more established the business will be.

9) Group Purchasing Power

Franchise networks are able to purchase products, services and equipment at a more affordable price. If your franchise deals with shipping, be it a retail franchise for example, franchisors will usually have agreements in place with suppliers for franchisees to buy postage and packaging at a better rate. Nobody is going to spend £5+ on postage and packaging — the business will lose customers. Keeping postage under £3 helps to retain the business of the customer. When you take into consideration some stationery businesses charge £3+ for a box, and couriers charging upwards of £3 for a small-medium parcel, it begins to be clear just how ineffective it can be as a small business with limited purchasing power.

Within franchising, the franchisor will establish agreements with suppliers. The franchisor will ensure their franchisees use a specific supplier, in exchange for cheaper prices. It’s win win. The supplier gets more clients and repeat business, and the franchise network benefits from wholesale prices.

10) An Asset You Can Sell

Eventually when you wish to retire, you can sell the business as a franchise resale. Also an option when getting in to business, franchise resales offer a franchise business in a box, but with an established presence within a territory. That means an established client base, and a reputation within the local community. Franchise resales are usually more costlier because the business has developed value over time.

When its time for you to sell the business and get your investment back, you can safely retire (or invest in another franchise!).

Find Out More

If you like what you’ve read and would like to learn more about franchising, discover franchise opportunities at Franchise Planet. From home based franchises to high end businesses for sale, there are over 1000 franchise opportunities in the UK. Not to mention the fact that franchising is continually growing in support. Almost all countries have a body supporting the franchising sector, such as the British Franchise Association. Remember that banks are also favouring franchises — the franchise community really is thriving.

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