Franchises By Industry

Types of Franchises UK

There are many different types of franchises in the UK. Pretty much any trading business can be franchised.

A franchised business model is formed when the owner of the initial business decides to sell to people, the rights to trade as that business. This makes the seller a franchisor, and the buyer a franchisee.

If a business can trade successfully, it can likely be franchised. After the owner decides to franchise, they'll prepare a plan of action and set up a pilot franchise. Documents such as a franchise operations manual will be compiled, so that any future franchisees have rules and regulations to follow, to ensure the best chances of success.

Once the pilot franchise is established - the first franchised outlet to check that the procedures are accurate and can be followed (a test franchise, if you like) - the franchisor will allow others to also become franchisees.

Some such types of franchises can be found on our franchise directory. Many popular franchises such as automotive, retail, food and coffee, have recruited franchisees in the past and are looking to cover other areas of the UK.

Most Profitable Franchises in 2024

What are the most profitable types of franchises? You might think that the higher the investment, the greater your earnings will be, but that's not the case. Sure, some franchises such as McDonald's and higher end franchises might have higher investments, but that is due to their strong brand name. Any franchise can be profitable, and how profitable will depend on a number of factors.

These factors can influence the profitability of a franchise:

• Brand Awareness - The wider known a brand name, the more power it will have and wider brand recognition will draw in more customers.
• The MSF and Fees - Obviously if the monthly fee is a fixed percentage, the amount you pay will go up depending on your earnings. Franchises with a lower MSF will reap more earnings to your own pocket.
• The Upfront Investment - The larger the investment and the longer the breakeven, the longer the initial spend will resonante and given that franchises are run on fixed yet extendable terms (usually about 5 years), the longer it takes for you to make back your investment, the less profitable the franchise will be in this time.
• Your Effort - It goes without saying that if you run the franchise part time, or don't make the effort to build your client base, the lesser the profitability. The more you put in, the more you get out. Many franchises can be run either on a management or multi van basis, meaning you can take on more vans, more staff and possibly more territories to build that profitability.
• Your Passion - You need to choose a franchise that you can see yourself running and enjoying and making the effort. If you enjoy what you do, you're more likely to put more effort in and get more out of it.
• The Location - Location is important. Make sure your bricks and mortar franchise is in the right place, and make sure that if it is a home or van based franchise, the territory is sizeable enough for finding clients.

The most profitable franchises in 2024 will be those that you can put the time and effort into. Those that are scalable and offer the potential for multiple revenue streams. Picking the right location is also important, so make sure when investing you choose a franchise with a sizeable territory.

There Are Over 1,000 Franchises For Sale in the UK in 2024

Franchising is thriving. Not just in the UK, but the whole world. In 2024, more and more brands are looking to enter the UK market. Franchise brands from USA, South Korea, UAE, Spain - businesses across the world. Through what is known as Master Franchising, international brands seek to expand and enter foreign markets by partnering with master franchisees.

With over 1,000 franchises already in the UK, and many small businesses establishing themselves as franchises, or international brands entering the UK market, this figure is on the rise.

You don't necessarily need considerable amounts of money stashed away to start a business through franchising. Many franchises are available for less than £10,000 and a breakeven within 6 months. In fact some home or van based franchises are out there from less than 5K! You'll also find that many banks such as Barclays and Natwest are eager to help those looking to get in to franchising. With specialist franchising departments, it is a commonly known figure that banks can lend up to 70% of the franchise investment. Repayable over several years, business ownership is within reach of more people than ever before.

Without sounding like a franchise salesman, what you'd pay (or even lose) trying to start up a business for yourself could end up costing a lot more than what it would cost to invest (buy) a franchise.

With many profitable types of home based, van based and storefront opportunities out there, it makes sense that if you're new to business ownership, you definitely explore the franchising sector. Franchising is very well supported - not just by banks, but by The British Franchise Association, many franchise consultants and UK legal advisors.

Even many experienced business owners opt to sell their business and go down the franchising route. You get full training and support, a proven business model and support, plus a fully-established, recognised brand name.

What Types of Franchises are Available in 2024?

As explained before, almost any commercial business can be franchised. If a business has a viable and commercially sustainable business model, it can likely be franchised. The 1,000+ opportunities across the UK aren't just made up of the same types of business competing, there are many smaller, niche business sectors with very little competition, with high demand, only just tapping into sectors set to boom!

Our franchise industry directory above lists many of the top searches from people looking to buy a franchise, such as

• Fast Food Franchises
• Retail and Storefront Premises Franchises
• Cleaning, Management and Hands-Off Franchises
• Opportunities that can be run by Parents
• Automotive, Van Based and Services Franchises

Outside of these busy, well-known and competitive sectors, you've got many smaller franchise sectors who's businesses work equally as well and are just as lucrative. Some of these you'll find underneath their parent categories above. Such as:

• Security and Premises Management Franchises - although niche, businesses such as security camera installation may also operate other services such as chimney sweep.
• Petrol Station Franchises - Despite the rise of electric cars, petrol station franchises are still in strong demand.
• Dog Grooming Franchises - While many pet businesses operate sitting and walking services, there are mobile and home based dog grooming franchises for sale in the UK
• Online Ecommerce Franchises - Stores on websites such as Amazon and Facebook Marketplace have all taken off in recent years. Operating as a B2C type merchandising setup, the dropshipping franchises allow franchisees to run the store but not hold stock.
• Plumbing and Gas - Including locksmith and handyman services franchises.

Head to any major shopping district and you'll see all sorts of different businesses - many of which are franchised! A decade or two ago, you wouldn't see bubble tea shops on the highstreet in the UK - at least as prominent as they are now. The same can be said for electric car charging points. These are both good examples of how franchising is helping businesses to reach wider parts of the world and grow their brand.

How to Invest in a Franchise in 2024?

Or to rephrase that, how to regain control of your future, be your own boss and get into business ownership in 2024.

The first step to buying a franchise is to explore the market. As with any type of purchase or investment, explore and compare different opportunities, shortlisting a possible ten that might meet your interests. Learn more about each one. If they're attending a franchise exhibition, attend yourself! Speak to the representative and ask questions to learn more such as about the investment, what's included and what the next steps are.

After shortlisting, compare investments and what you get, crossing off those that don't seem appealing. When you've reached 3 or so, attend discovery days or interviews with the franchisor. Once you feel strongly about a particular one, you'll later be able to go through the franchise agreement with a lawyer before proceeding with the investment.

Once the investment is paid, you will receive training and support, so that you are able to launch the business in complete confidence.

Take a look around the Franchise Planet website today and explore the directory of franchises for sale.