Small Franchises

What is a Small Franchise?

There are a number of definitions of a franchise considered to be small. Small franchises might be given their name due to the current size of their franchise network, or their requirements for start-up. A small franchise might be named so because you only need a limited amount of investment to get a territory off the ground. The name may also apply, if the business once trading, can be run from home. Generally a franchise that can be run from home will be considered small because of the limited space you need to run the business effectively.

Here are some definitions of small franchises - which type are you interested in investing?

• Home based franchises that require a small office footprint.
• Franchises that cost less than £10,000 to start.
• Franchised businesses that are new to franchising and only have a small network so far.
• Small franchise territory size but high potential returns, for example pet businesses where more than 50% of your territory are already prospective customers.

There are over 1,000 franchises out there and many can be run from home. Looking to invest in a franchise with limited budget, or to meet your flexibility requirements? Read on to find out more, or request a prospectus from some of the above franchise brands.

Should You Buy a Small Franchise For Sale?

As mentioned already, there are many different types of small franchise out there. If you are looking to buy a small franchise in the UK, be sure to decide what is best for you. So should you buy a small franchise? Let's take a look.

Small Owner Operated Franchises For Sale

Owner operated franchises are considered small because:

• You only have a house office or van, not a business premises,
• You don't need to recruit staff, so therefore your overheads are small,
• And because of the above two factors, your investment is cheap too.

Owner operated franchises are normally affordable enough for most new entrepreneurs or investors to launch, but big enough territories to yield decent potential. You can usually expect to pay around £15,000 for the franchise investment for a small van based franchise like oven cleaning or pet food supply. This scales upwards depending on the equipment and vehicle size / fitting required.

Low Cost Small Franchises

Franchises may also be considered small due to their low investment. There are a number of franchises out there that have an investment requirement of less than £20K personal funds. These are normally home based or van based because they don't require expensive premises fit out. Conveniently, franchises like vending and pet food supply usually offer scalable franchise models - enabling newbie entrepreneurs to start out small - really small, sometimes as low as £4,995. Varying packages by investment level, this attracts many new entrepreneurs. A great example of a scaled investment package franchise is Husse Pet Food and you can find them on this website. These scalable franchises might let franchisees choose their territory size or starting stock so they can gradually work outwards on an otherwise reserved territory. This management helps keep costs low for franchise investor - you!

New Franchise Opportunities

Every franchise has to start somewhere. All business owners franchising will start out with one franchisee. Then two, then three. Then to the point where fewer and fewer people consider the franchise to be small for much longer. There are some really exciting and unique business models out there just waiting to be explored. Just because a franchise only has one or two franchisees shouldn't be a put off. New franchisors can rarely afford BFA membership, or franchise exhibitions. So it's a good idea to explore the opportunities on websites like Franchise Planet.

New franchises shouldn't be a cause for alarm because of their size. Like any other business choice, carry out due diligence and explore the market. Weigh out the pros and cons of investing in the franchise and make a list of similar opportunities.

What Are The Best Small Franchises For Sale?

Small franchises are great for new entrepreneurs. Not only do they have a low investment, they keep the overheads low as well. Owner operated franchises are perfect for new entrepreneurs and are great examples of small businesses. The best small franchises are those that have a good franchise model in place. A sound business with strong customer engagement, who's reputation stands strong and offers products or services that are in demand.

The best small business opportunities franchise will give the franchisee the best possible chances of success. When buying a franchise, look for one that offers generous training and support. You should also compare franchises as part of your due diligence. Sometimes business owners jump into franchising their business without completely realising its viability and can end up missing key components within the franchising setup, so it is essential that you seek a franchise consultant and lawyer's guidance when investing. But this is true of any franchise you purchase. Franchising has a fantastic success rate of 93% - a statistic that is consistent across many franchising surveys. Why not explore franchising as your route to self employment?

How Much Does it Cost to Buy a Small Franchise?

The good news is that most small franchises cost less than £25,000 and many have unlimited earning potential. That is, the more you put in, the more you'll get out. You choose to work your own hours and obviously the more you work, the more money you'll make. Franchisees often set their own prices, just like if you had gone it alone. By setting your own prices, you can offer competitive rates to your competition, and earn a figure in line with your ambitions.

Interested in getting into business ownership? Many small business models are available through franchising. Why not enquire about one of the opportunities above to request an info pack?

Does Small Mean Easy?

There is no such thing as easy franchise opportunities. Just like starting up a business yourself, franchising requires lots of work and enthusiasm in order to get the business off the ground. There are many small business franchises that are easier to start than others, because they take a lot of weight off of the franchisee during the launch / investment process. There are easier franchise opportunities to start compared to others because:

• They offer lower investment packages to suit smaller budgets, or those that are new to entrepreneurship and are trying to minimise their financial risk.
• They are solely run by the franchisee, enabling a flexible lifestyle with less stress so they can take the franchise growth at their own pace.

If you're new to the world of franchising, why not consider a small or low cost franchise to help you get started?