Franchises Under 10K

What is a Franchise?

A franchise is a business which is part of a network of other businesses, all trading under the same brand name. Simply, franchising refers to a method of business expansion where the brand’s owner grants the rights to trade under that business model and brand name, to a third party. The third party is known as the franchisee, whilst the brand’s owner is known as the franchisor. The franchisor might be a company or an individual, and in the same respect, the franchisee too might be an individual, company or husband/wife team, etc.

Franchising enables entrepreneurs to get into business for themselves but not by themselves, in that by investing in a franchise, the franchisee gets access to the supportive framework that is franchising. Many franchises can be invested in (bought) from less than £10,000.

What will I get when I invest in a Franchise Under £10,000?

You’ll get access to a proven brand name and an established business model. Varying by franchise, you’ll also get marketing materials, a website, a van livery (if applicable), and launch stock to get your business off the ground. You will need to set aside working capital of a similar figure, but otherwise the investment is very much the business-starter investment.

Van based and home based franchises are two of the most popular types of businesses which can be launched for less than £10k through franchising. Because home- and van- based franchises require very few launch equipment/stock, the investment is often low. Even franchises for sale under £20,000 can be invested in for less than £10k because many banks and lenders are able to assist with franchise finance.

For a franchise under 10K, you should expect to receive full training and support, a fully established brand name, plus anything in the nature of the business that you need to start trading effectively.

Are Franchises under £10,000 Profitable?

To gauge whether a franchise under £10k is profitable you should carry out due diligence. Explore the market in your own area and understand whether the demand is enough to enable a business to be profitable. Understand the competition and learn whether the demand is already met. Luckily, franchise businesses benefit from increased buying power, greater marketing (through an already recognised brand) and sizeable territories, meaning regardless of competition, the business should still be successful provided there is demand. But profitability of a franchise will strong depend on its owner. How much time can you commit? The more you put in, the more you’ll get out of owning a franchise.

Ultimately, when you’ve built up the business, you’ll be able to sell it as a franchise resale. Explore the most profitable types of franchises in the UK.