With retail and merchandising worth billions to the UK economy, it makes sense that such a lucrative sector should have opportunities within franchising. Franchising is a great way to be your own boss and with a wide range of retail and merchandising franchises for sale, there is something for everyone. Merchandising is a prime example of a home based franchise that can be run either on a part time or full time basis. Many merchandising franchises won’t need you to hold stock either, making them lightweight and low overhead businesses.
What is a Merchandising Franchise?
A sub industry of retail, merchandising franchises are businesses which purchase finished goods and resell them on to the customer. This could be solely to make a profit, but corporate branding solutions are also a fantastic example of merchandising. Corporate branding and merchandising franchises run in the B2B market, making them very profitable and recession-proof, while reselling of goods and products can be both B2C and B2B.
Merchandising and retail franchises can be a case of supply and demand, so it is important that you choose a well established business with a recognised brand name so that you stay ahead of competition.
Examples of Merchandising Franchises
The concept of merchandising can be tricky to grasp for those not familiar with franchising. With a few examples, it should be easier to see how these franchises work.
- Vending Tower Franchises – Vending businesses will typically purchase goods from suppliers and sell them on for a higher price to make a profit. As well as the franchisee making money from the machines they make money from the goods too.
- Branded Products and Corporate Branding – Mugs, pens, teddy bears and stationery are purchased from a supplier and branded to meet B2B client requirements. The franchisee makes profit from selling the branded goods to a client, profiting from the difference between the wholesale price of the unbranded goods, and the sale price minus franchisee’s own costs.
- Card Shop Franchises – Either operated as a retail store or a home based business, card franchises purchase greeting cards from suppliers and resell for a higher price. Resale of goods is a consumer driven market and is often a case of supply and demand as to whether a business is profitable. Therefore choosing a well recognised and established brand name is paramount.
Reasons to Invest in a Merchandising Franchise
There are many reasons to invest in a franchise business. Becoming your own boss, taking control of your career, everyone will have their own reasons but here are some reasons to consider a merchandising franchise as your next big career step.
1. Become a Part of a Proven Brand
Being a part of a proven and recognised brand is essential in such a competitive market. Demand for retail and merchandising is high and in order to stay ahead of competitors, a recognised brand name helps achieve this. When you become a part of a proven brand, you’re joining a business that has a track record. If you were to start up a merchandising or retail business from scratch, brand history and reputation is nonexistent and you’ll find it much harder to secure clients. Even with drop-shipping franchises, having an instantly recognisable brand is more likely to lead to sales than one a customer has never heard of, regardless of the prices you charge.
2. Full Training and Support Provided
As mentioned earlier, merchandising is a very competitive market but with the training and support of the franchisor, you’ll be able to trade effectively making sure your business runs smoothly. Training will usually involve either residential or on job training with another franchisee. It may be home based training or video conferencing, and support assets will usually be available to you ongoing.
3. A Business in a Box
If you were to start a merchandising business up by yourself, one of the challenges will be finding suppliers and partners to work with. You would need to source a wholesaler yourself who can ship products to you at a competitive price. You’d also need to create a brand and a business. If you have no past business ownership experience it is easy to make mistakes, some of which can be very costly. This is why franchising is a much safer way of going into business ownership. You get access to the franchisor’s brand, suppliers and partners plus initial marketing and products. Known as a business in a box, franchising provides everything to you in exchange for the initial investment.
4. Merchandising Franchises Are Usually Low Cost
Most merchandising franchises will be available to invest in for under £30,000. Thanks to bank funding, you may be able to get up to 70% finance meaning you can allocate more of your own funds as working capital.
Merchandising franchises, in the case of corporate branding, will usually be home based. Your role will be sourcing and working with clients, and working with the franchisor’s suppliers who carry out the corporate branding on ordered goods. Because of this you won’t need to hold stock, your overheads will be minimum and the franchise can often be run on a part time basis. If you’re looking for a low cost franchise that can be run home, look no further than UK merchandising franchises.
There are many low cost franchise opportunities in the UK, and vending is one of the most affordable sectors. As a merchandising franchise you’d purchase vending towers and purchase stock in line with your ambitions. Profiting from the sale of goods, you can scale upwards your vending merchandising business in line with how much you want to work, and how much you want to earn.
5. You Can Sell A Merchandising Business Later in Life
After you’ve built up the business, you can sell it. Whether you’re wishing to retire or pursue other business ventures, you will be able to sell your merchandising business for a good price. Often franchises can be sold for a much greater sum than what was initially paid for in the investment stage. This is because reputation and effort put in all contributes to the final valuation of the business.
Selling a franchise territory and its business is called a “franchise resale” and is attractive to experienced investors and entrepreneurs because of the turnkey nature in that cashflow is positive from day one.
Should You Invest in a Merchandising Franchise?
If you’re looking to run a retail business from home, or an internet based business which offers high returns and low overheads, merchandising is a great way to go. Unlike traditional retail bricks and mortar premises which are limited locally, a home or internet based merchandising business enables you to trade with consumers anywhere in the world. Corporate branding franchises can also be run from home, with the branding and print done centrally with the franchisor’s suppliers. Your role as a merchandising franchisee in this case would be sourcing clients, where the suppliers brand and ship the goods.
If you’re looking for a home based business that offers unlimited earning potential, merchandising franchises are a great choice. Discover a World of Franchises at Franchise Planet.
