Franchises Under 30K

What is a Franchise?

If you’re looking to get into business ownership, you’ve got a few different ways you can go about it. You can start up a business yourself, retaining complete control but still under the hands of inexperience. Or you could buy an existing business for sale, but the costs can be staggering and still, you’ll retain the inexperience that can lead to costly mistakes if you’ve never run a business before. Or you could invest in a franchise.

Franchising is a method of business expansion where the owner of a brand licenses out the business model to a third party for them to run in their own area. Ideal for those looking to get into business ownership without too much risk, the best franchises come with full training, support and everything you need to start up the business, minus the hassle.

In franchising, the two main parties are the franchisor (the brand’s owner), and the franchisee (the individual or company purchasing the rights to trade).

There are many franchise opportunities out there available for less than £30,000.

A Supportive Sector

Although franchising isn’t government regulated in the UK, it remains a considerably well supported sector. Banks and businesses are often able to lend up to 70% of the franchise investment, repayable over a number of years, because of the wide understanding of franchising’s greater success rate. Around 93% of franchisees claim profitability, whilst only 1% fail due to commercial failure – figures of the 2018 bfa NatWest survey.

The British Franchise Association is built up of many members, both franchises and suppliers (including bfa approved banks and lenders plus consultants) who all abide by the Code of Ethics for franchising, and all members are fully checked out by the experts at the bfa. The British Franchise Association exists to make franchising a great way to get into business.

Within individual franchise networks, franchisors provide full training and support, plus the investment will often cover everything you need to get the business off the ground – such as marketing, leaflets, a website etc.

What will I get when I invest in a Franchise Under £30,000?

Regardless of the initial investment, franchises will include everything you need to start the business. All the way from territory support, site selection and understanding the business, right up to training, support and launching in your area. The £30,000 investment will often include full equipment plus starting stock, but with over 1,000 types of franchises in the UK, what’s included will vary greatly between brands. Speak to the franchisor to learn more about each package. When carrying out due diligence, it’s always a good idea to shortlist five to ten brands that match your interests, exploring each one and ultimately working through each to find a perfect match.

Are Franchises under £30,000 Profitable?

Generally speaking, all types of franchises are profitable. For a business to get to the point of franchising, the business model needs to have already demonstrated resilience in the market. The profitability of a business is very much up to its owner.

To gauge whether a franchise under £30k 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.