10 Types of Franchise Opportunities With The Lowest Failure Rates

If you are looking to get in to business ownership, you have probably pondered which types of businesses are likely to be the most successful. While the success and failure relies not just on the business and brand, it is very much up to your own enthusiasm and input too.

Franchising in itself sees a fantastic success rate amongst business owners. The British Franchise Association’s research into the sector shows that less than 1% of franchisees fail each year. This is in stark contrast to a figure that Startups.co.uk reports, that 20% of independent startups fail in their first year. That is a big gap, one that is closed by the benefits of franchising.

Generally speaking, all franchises should have low failure rates. It’s in their nature. After all, a franchise is a tried and tested business model, designed for scalable, successful replication. However there are different types of business which show greater resilience and profitability. These types of franchises show the lowest chances of failure.

What is a Failure in Business Franchising?

Failure can occur for many reasons and will franchises are generally more stable than self started businesses, they’re not failure proof. Business failure can happen for many reasons. Inability to achieve a profit is often the main reason and this can happen for any number of reasons. Starting up a business from scratch, your entry into a market can go several ways, depending on your research. If you don’t achieve a decent number of customers, or if you haven’t properly balanced your pricing structure and turnover against overheads. If the market is already saturated for example, there may be enough businesses fulfilling the demand. Entering a competitive sector is fine but you need to have an edge, many franchises have a strong brand name that tends to ring familiar with customers. Franchises also have greater marketing power, such as TV and radio advertising.

Some reasons why new businesses fail:

• Lack of research into the market, or not gauging the demand for the particular type of service
• Ineffective business plan
• Cash flow issues or not enough capital to sustain business development in the early stages

Which Types of Business Ideas and Franchise Opportunities Have the Best Chances of Success?

Franchises with the lowest failure rates – ie the businesses that have the greatest success rate, are those in sectors which show strong demand. Even these types of franchises can struggle if the owner lacks commitment or the correct attitude towards running the business. But in essence, there is often lower commercial risk when entering a market which is in clear demand, contrasted with entering an otherwise unproven market.

Franchising is generally a safer route into business ownership. A proven brand and business model that is tried and tested, deemed sustainable, and profitability demonstrated by other franchisees in the network. These types of franchises (and business opportunities) tend to have the lowest failure rates.

1. Coffee, Food & Beverage Franchises

Coffee is one of those markets that despite already having a fair amount of businesses fulfilling, there is always room for more. From artisanal coffees and teas to mobile food businesses that pop up in the right places – areas with high footfall like transport hubs and community events – the demand simply never rests.

The trick to a successful food and beverage business is getting the brand right. With a franchised coffee or fast food business, you have a powerful asset behind you – an established brand and business model that is already doing the right things. Following the operations manual set out by the franchisor, you can run a successful food business in your area.

Miss Millies Fried Chicken, KFC and McDonald’s are all popular fast food franchises, while Jamaica Blue, Muffin Break, Coffee Republic and Really Awesome Coffee are winners for many entrepreneurs looking to get involved.

2. Gardening & Landscaping Businesses

Garden and landscaping services remain a popular owner operator business choice and due to their demand, can have great success rates in general. Whether a garden fence has blown down in a storm, or a landlord is looking to get their property up to scratch for a prospective new tenant – the person to do the job will be a local tradesman. Whilst there are franchises like Colourfence that specialise in fence, gate and wall installation, many independent businesses thrive just as well. However it’s important to remember that in the gardening and landscaping trade, you’ll need tools and equipment which is where franchising comes in really beneficial. Your franchisor will often have agreements in place with equipment and materials suppliers to help you get the best price, thereby able to provide competitive rates for your services.

Gardening and landscaping is both a B2B and B2C trade. Local jobs and bigger projects alike, there is usually no shortage of demand for gardening related services.

Some well known gardening franchises include Nice N Stripy, Lawnkeeper and TruLawn (artificial grass installation).

3. Owner Operated Cleaning Franchises

Owner-operated cleaning franchises have good chances of profitability thanks to their low overhead business structure. While management cleaning franchises are also well sustainable, owner operated businesses rely a lot less on large turnover. No staff means the franchisee only needs to work enough clients to cover their costs. Thereafter they’re profiting. This is why many owner operator franchises can claim better work life balance, flexibility and even profitability while run part time.

Oven cleaning franchises for example, take in around £60 – £100 per booking. 5 bookings a week (2-3 days per week) and turnover is already in four figures per month.

Territory size is often a concern for those new to business ownership, with many new entrepreneurs trying to get the biggest possible area they can. This lack of confidence usually ends up the reason why people choose to go it alone instead. Bigger territory, more potential clients, right? But while that is true, you shouldn’t need this extra space. Even with 5 competing independent cleaners in your local city it should be more than viable to run an owner operator cleaning business in a regular size franchise territory. Usually with 50,000-100,000 households. Clients looking for an oven cleaner will use local tradesmen. Not an oven cleaner 30 miles away. Don’t worry too much about territory size when choosing a cleaning franchise, many franchisees have entered competitive trades like oven cleaning and made up a fantastic business.

4. Gym and Fitness Franchises

There is growing nationwide demand for better health and fitness facilities. More and more people are realising the benefits of gym membership and its healthy advantages. You may already have assumptions about what a gym business entails – fitness equipment in a broad sense. But there are actually newer types of technology such as EMS (electro muscle stimulation) that help members achieve their fitness goals through triggering responses in muscles via electric pulses.

Gym businesses can be set up in a range of size premises so whether you already have an existing property or not, the franchisor can help you achieve your business goals.

5. Elderly and Senior Care Franchises

A fairly obvious business choice that quite simply will always be in demand. From home care to care homes, and community transport and companionship franchises, senior care franchises are seeing some of the lowest failure rates thanks to the wealth of support out there. Businesses like the British Franchise Association and the FSB can help first time business owners get their ambitions off the ground.

Home Instead is a popular home care franchise, while Driving Miss Daisy is a top choice for entrepreneurs looking to run their own companion and community transport business.

6. Pet Sitting and Dog Walking Franchises

Pet related business ideas thrive for many reasons, but mainly because more than half of households own a pet. It can be difficult to spend time away from the home, knowing you have loved ones that need tending to. With many pet franchise businesses realising that owners would rather go away with their pet looked after in their own home, rather than a kennel, the demand increases twofold.

Franchises build up a solid reputation and brand. Owning a franchise business means customers can associate positively with your brand and by delivering a fantastic dog walking, cat sitting, or other pet service in your area, you can build up a fantastic business, reaping the rewards for years to come.

7. Property and Estate Agent Franchises

Estate agent and property businesses are no longer solely on the high street. While it was commonplace to find your next home by window shopping, most people find their next property online. Both high street and online property franchises thrive, while the latter often offers lower overheads due to its home based working styles. The recognised brand associated with property franchises is one of the points that make them successful over independent start-ups. It should come as no surprise that property is one franchise with low failure rate because demand for homes is ever increasing.

8. Automotive and Car Services Franchises

Auto business franchises are without question, one type of franchise with a low failure rate. Realistically, the automotive franchise sector is not only one of the most lucrative franchise sectors, it is one that demonstrates resilience and continued growth. Thriving through recession and thriving through pandemic, car services from garages to mobile mechanic, car washing and vehicle retail – all of these show no signs of slowing. If you have a passion for cars, why not turn it into profit?

For a low investment, many automotive franchises for sale can be run owner-operated, meaning you don’t need to employ staff (unless you want to). This includes franchises like tool hire, mobile tyre fitting, mobile damage repair, those kinds of business. These types of automotive franchises also employ the opportunity to upscale with additional vans and staff.

Some popular franchises in the automotive sector include:

• Screen Rescue commercial windscreen repair franchise
• Hometyre
• ChipsAway
• Revive!

9. Business Services and B2B Franchises

From accounting to franchise consultants, there are many B2B type franchises out there. Many organisations either struggle to find the time for particular needs, or cannot afford to employ staff (or may not even need) part time or full time for a particular role – such as accounting, cleaning or PR. There is a lot of demand for various business to business services so it’s a sector worth exploring.

Some of the best B2B franchises include:

• The Cost Reduction Company – a franchise that helps businesses cut their internal expenses and save money
• ActionCOACH – a business coaching franchise that has been established for a long time
• Tax Assist – a widely recognised accounting and tax handling firm

10. Childcare and Education Franchises

There are many different opportunities within the childcare and education sector. In recent times, computer coding and science have grown in popularity due to the evolving school curriculum. These computer coding franchises can often be run owner-operated by a dedicated franchisee, lowering ongoing costs. Franchises that stay ahead in their field, are likely the ones to have the lowest failure rates. Computer related technologies including software development – even digital marketing – remains a critical aspect of business success – which is why computing is a core subject at schools.

Aside from education, childcare in general demonstrates inherent stability and growth potential. With a growing population, the demand for childcare services such as nanny franchises, nurseries and soft play remains all time high.

Some of the best childcare franchises include Sleep Nanny, Harmony at Home and Tinies Childcare.

Could You Run a Successful Business?

Above are just ten of the most successful types of franchise opportunities either due to their high demand or generally resilient business nature. If you’re looking to get into business ownership, why not consider franchising? With full training and support from the franchisor plus everything you need to get the business off the ground, be a part of a proven brand with franchising. Whether you’re a new entrepreneur looking to take your first steps into the world of business ownership, or someone looking for a new challenge, getting into business with a brand that is well-known and fully established has many advantages. Discover a world of franchises at Franchise Planet.