10 Reasons to Invest in a Vending Franchise

Be your own boss and join one of the most secure yet affordable franchise sectors in the UK. Vending franchises are a fantastic entry point into the world of business ownership.

Vending Franchises

10 Reasons to Invest in a Vending Franchise

If you’re looking to invest in a business that is not only a fantastic entry point into the world of business ownership, but also has the potential to generate significant returns, why not consider a vending franchise? From coffee machines to snack boxes, there comes a lot of choice when deciding to invest in a vending franchise. If you’re looking to be your own boss, why not consider one of the most versatile sectors in the world? Here are 10 reasons to invest in a vending franchise business in the UK.

1) An Established Brand

First up, when you invest in a franchise, you’re becoming part of an established brand. As a franchisee, you’ll be running an already-proven business in your area. You’ll be owning a business just like other vending franchisees, benefitting from operating as an already-proven, already-recognised business. By investing in a vending franchise, you’ll be gaining the power of the brand that the franchisor has built up alongside other franchisees. As the franchise network grows, so does its reputation and this powerful resonation helps to draw in more customers. McDonald’s once started off as a single unit, before franchising and becoming the fast food giant it is today. As a brand grows, so does it’s awareness. If you see the golden arches branding, you’ll immediately associate it with McDonald’s. This brand power sets apart franchises from solo businesses, and you benefit from that brand awareness from day one.

It’s not just the established brand you receive when investing in a franchise. You’re also receiving access to the partners and supply network of the franchise network. That includes, access to purchasing and leasing vending machines where necessary, plus purchasing stock at competitive prices.

2) Multiple Revenue Streams

Although the vending franchise sector is quite diverse, the principles of operating the business will be quite similar. The main revenue streams will be supplying and leasing out the machines (or snack boxes) potentially in addition to other addon work. Extra work might involve repairing and maintaining the machines, as well as providing an ongoing service to keeping the machines in order. This might generate you ongoing turnover not only from machine sales but also ongoing servicing and repair.

3) An Entry Point into Business Ownership

Vending franchises are a brilliant entry point into business ownership. Not only are they low cost, but they enable you to grow the business at your own pace. If you want to start out small with only a handful of machines or snack boxes, keeping your client base minimal, that is your decision. If you choose to run the business alongside other commitments like a part time job or running a family, that too is up to you. As well as their affordability, scalability and choice to grow at your own pace, you also benefit from full training and support – something you won’t get if you were to start up alone.

4) Full Training and Support

The vending franchisor will want you to be successful. After all, you’ll be representing their brand. The success of the franchise network benefits everyone, and small mistakes can be costly. So it is only to be expected, that the franchisor will provide you with comprehensive initial training, plus ongoing support when you need it. Initial training might involve residential training on aspects such as finance, marketing and recruiting staff (if necessary). Ongoing support might involve updates from the franchisor about products and services, and updated marketing materials as well that benefit the franchise network.

As a franchisee, you will benefit from having the support of the franchisor. This is something you won’t have if you started up alone. Let’s not forget that many vending franchises are well recognised and are members of a franchise association. Having the recognition of a franchise association such as the British Franchise Association means the business has been thoroughly checked and is shown to be a stable business model that is deemed franchisable.

5) A Booming Market

Everywhere you go, you’ll see a vending machine. It might be a snack vending machine in a supermarket, or it might be something simpler, like a snack box on a reception counter. It goes without saying that vending businesses are everywhere, and although they do sometimes go unnoticed, they’re there when you need them. From leisure centers to train stations, vending machines, simply put, are a convenience. Such a convenience that almost 20 million products are sold from vending machines every day in the UK. That’s nearly 7 billion a year.

6) A Flexible Work Life Balance

Vending franchises are best known for affordability yet flexibility. As a vending franchisee, you can enjoy a better work life balance, simply because you’re in full control over the business’s success. Although you’ll be spending time finding B2B customers to host the machines, how many machines you lease out is up to you. And once the machines are in place, all that needs doing is occasional maintenance and restocking. Outside of this window, you’ll be working from home marketing the business and finding new clients…when you’re not relaxing on the beach with your family.

7) Straightforward, Scalable Business Model

Most vending franchises will give you control over how many clients you work with. How many machines you operate will very much be up to you. Because of this, vending businesses offer complete scalability. You might want to start out with just a few machines, whilst running alongside existing job or business commitments. As the stock starts selling and the money rolls in, you might find it tempting to lease out some more machines. Luckily for you, one of the biggest benefits of franchising is that you have your own exclusive territory to trade in. That means, no other vending franchisees will snap up your local businesses. You’ll be able to scale and grow the business at your own pace, whilst enjoying flexibility and a better work life balance.

Vending machine franchises can usually be run from less than £5,000. While some can be found for less than £1,000, you’ll want to make sure that adequate training and marketing is provided by the franchisor as in point 4.

8) Work While You Sleep

Vending machine franchises are unique in that they sell for you. Placed in a prominent position, vending machines will naturally draw in customers. They might be situated at rail stations, leisure centers, garages and supermarkets. While you’re enjoying spending time with your family, or developing the business to boost turnover, your vending machines will be working away generating profit.

And ultimately, vending machines have unlimited earning potential too. The more machines you lease out, the more visibility you’ll have by customers and the more money you’ll be making. Every day, almost 20 million products are vended from vending machines in the UK. That’s a whopping 7 billion items per year!

9) Be Your Own Boss

Franchising isn’t employment. It’s business ownership and entrepreneurship. Whilst you do need to abide by the franchise agreement and franchise operations manual, the business is very much yours. Just like a McDonald’s franchisee owns their own McDonald’s restaurant. As your own boss, although you won’t have complete control over the products and services offered, you are still in control of your own working patterns and the general direction the business takes. Ultimately, the more work you put in, the more you’ll get out. Vending franchises can often be run alongside another business or job. Going back to point 7, if you want to put more work in, there’s nothing stopping you. If you want to take on more work by leasing out more vending machines, that is entirely up to you. In the same manner, if you want to do extra marketing for your business and drive more sales, equally, that’s your decision as a business owner. Perhaps you want to take on staff to handle restocking machines and managing repairs, again you’re choice. So long as you operate within the bounds of what the franchise operations manual deems viable, the business is yours.

10) An Asset You Can Later Sell

Typically, after you’ve bought a vending machine, you can sell it back to the supplier, franchisor or the next franchisee. Franchise resales enable you to sell your franchise business on to another franchisee when you’re looking to pursue other avenues. Thanks to you, the business is now worth considerably more than when you invested initially. The B2B client base you’ve built up, the B2C market that’s been established whilst your business has been running – all of this has established value. Your business can be sold on for a higher price, as a business for sale.

Vending franchise resales may not necessarily be worth as much as other resales due to their low entry cost, but your hard work won’t go unrewarded. As a franchise resale, the next owner will be able to benefit from an established client base and turnover from day one.

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