Business & Professional Services Franchises For Sale

Business & Professional Services Franchise Opportunities

What is a business franchise?

A business franchise will usually offer professional services that other businesses rely upon to conduct their day-to-day operations. This includes business coaches, marketing, financial services, HR and recruitment, as well legal and compliance.

As a result, most franchise brands will operate a business-to-business (B2B) model which means your customers will be businesses rather than individual members of the public.

Types of business and professional services franchises

Business consulting and coaching franchises

The franchisee will usually work with other businesses, providing strategy and guidance on how they can solve their problems and reach their goals. Sometimes these services can be conducted remotely, or they may involve travelling to various locations rather than working from an office. Franchises here include: ActionCOACH (£90,000 total investment), Chrysalis Partners (£39,950 total investment), and BizSmart (£50,000 total investment).

Financial services franchises

The business will provide a range of services such as accounting, financial risk assessment, investment management, or insurance. Some brands service individual members of the public as well as other businesses, and often they will require a physical bricks and mortar store. Franchises include: Woods Russell (£20,000 total investment), Brokerplan Academy (£13,995 total investment), and Certax Accounting (£26,750 total investment).

Marketing, advertising, and PR

These businesses vary in offering, focusing on specific niches that aid in promoting brands further. Marketing and PR services don’t always require a physical location, but signage and printing services will usually require retail space. Franchises include: activ Digital Marketing Franchise (£50,000 total investment), Signarama (£110,000-£135,000 total investment), BforB (£25,000 total investment).

HR and training franchises

These businesses will either act as a business’s HR department, but on an external basis. Others provide training courses which enable businesses to upskill their staff. Franchises here include: Sales Geek (£40,000 minimum investment), Sandler Training (£55,000 minimum investment), and Pitman Training (£80,000-£100,000 total investment).

Recruitment agency franchise

These businesses are key to tackling staff shortages for clients and will often require franchisees to build up a network of candidates and clients. Franchises here include: Driver Hire (£70,000 total investment), Robocore Recruitment and Technology (POA total investment), and Kenect Recruitment (£19,950 +VAT total investment).

Law franchise

These businesses will provide legal and compliance services to businesses as well as members of the public. Sometimes, these brands will specialise in specific areas. They will usually require a bricks and mortar office location and legal professionals. Franchises include: APS Legal & Associates (POA total investment) and Family Law Assistance (£10,000 total investment).

How does a business franchise work?

The way a business franchise operates will depend on the brand you’ve chosen to invest in. However, there are some general trends in how these types of businesses operate.

Business franchises will typically be selling to other businesses, but brands such as accountants or law firms may also service individual members of the public.

A lot of brands have a business model that enables franchisees to work without a set location. For example, virtual assistant brands often give franchisees the flexibility to work from anywhere so long as they comply with regional tax requirements and have access to internet.

Elsewhere, face-to-face communication may be considered a key part of the brand’s experience and will require franchisees to either travel to their clients or set up a premises to operate from.

For example, a business coaching brand (like ActionCOACH or GetAhead) will likely visit their clients for one-on-one training. Meanwhile, highly regulated industries such as law firms and financial services may need to operate from a set office location to ensure the safety of its data.

What business franchise is most profitable?

There are multiple types of business franchises that can perform well financially. For example, technology, law, marketing, and financial services can all yield sustainable levels of income as many brands will enable franchisees to work for clients on a retainer basis. This means the level of revenue you’re earning from each customer is likely to be a lot higher than if you were working in consumer industries such as food and beverage or children’s services.

Make sure to ask brands for their financial figures, their average ROI for franchisees, and the typical revenue levels for franchisees within the network (aim to speak to these franchisees directly). This will help you to understand the profitability, what factors have been necessary in creating that profitability, and whether it’s a viable financial opportunity for you.

Most importantly, always seek independent financial advice and make a long-term investment plan before parting with your money.

What are the financial requirements for a business franchise?

Investment costs for a business franchise will vary depending on the brand you’ve chosen to invest in, what location you’re looking to service, and what kind of services you’re offering.

However, fees incurred usually include:

- The initial franchise fee which is typically paid when signing the franchise agreement: £15,000, £40,000.

- Total investment fee which will cover everything you need to start your business from office rental, equipment, marketing, and working capital: £40,000-£120,000.

- Royalty fee which you’ll pay as an ongoing fee: 5-10% of gross revenue.

- Advertising fee which you’ll pay ongoingly: 1-4% of gross revenue.

(Please note, these figures are averages and may be more or less than what’s stated here.)

While these figures could look startling, responsible franchises will usually have a support plan in place to help franchisees deal with the financial investment of starting a business. This usually includes staggered payment plans, and partnerships with banks to secure loans.

What are the advantages of a business franchise?

The business and professional services market can be a very lucrative space in the UK. Benefits often include:

- Recurring revenue: services such as accounting and HR will be an ongoing requirement for businesses, which means you’re likely to gain long-term clients.

- High demand: professional services are often critical for businesses.

- Specialisation: if you’re able to become an expert in a specific space (for example, SEO marketing) you could charge a premium.

- Reliant on networking: the business world is very connected, if you’re able to get your brand out there and show you’re doing a good job, word of mouth can propel your profits.

What is the disadvantage of a business franchise?

While professional services can be very profitable, they are also severely impacted by the economy. For example, if businesses decide to tighten their purse strings, retainers with external services are often the first to be cut.

Challenges you should be aware of include:

- Competition: the business services market is an attractive one and as a result it can be difficult to stand out without strong sales and marketing efforts.

- Unbalanced workload: a lot of your income will likely be generated by projects and retainers. This might mean you’ll be incredibly busy some weeks and very quiet during others.

- Pitching: you may have to do a lot of upfront work to secure a client via pitching - going up against other brands in the process.

Where can I find professional services franchise opportunities?

Business and professional services franchises often advertise their franchise opportunities in multiple places. You can look through directories such as at What Franchise, get in contact with the British Franchise Association, as well as attend industry events such as the International Franchise Show.

Some businesses may be operating on a smaller scale, and only be advertising opportunities on their own website and LinkedIn. In this case, it may be useful to look up some brands operating in the space and reach out to them directly should one catch your attention.

How to open a business franchise

Launching a business is a big investment, so it’s important you take time to consider what you’re trying to achieve, what you’re looking for, and what you need to make it successful.

If you’re looking to open as part of a franchise, you’ll also need to consider what type of franchisor you’re looking to work with, as well as if their values and business philosophy align with your own.

Here are the steps you need to follow to open your own business and professional services business:

1. Research franchises

Dedicate a good portion of your time to identifying what type of franchise brand you’re looking to invest in. For example, what line of work best suits your existing expertise? Where is the demand in the business services market now? Where is there a gap in the location you’re planning to operate in? Try to keep an open mind and explore multiple options before deciding on which brands are best for you to discover further.

2. Evaluate your options

It’s time to dissect the franchise brands you’ve shortlisted and leave no stone unturned. What makes these businesses work? What are the challenges? And what are the opportunities? Aim to attend discovery days, ask brands for their financial disclosure document, and speak to existing franchisees within the network. (If franchise brands are unwilling to connect you with their franchisees it could be a red flag).

3. Creating a funding plan

By this stage you should know the costs involved in your selected franchise. Now, you need to work out how you’re going to fund this, and whether there’s enough profitability in the business. (Remember, many brands say it takes about two years to achieve ROI, so you’ll need to ensure you’re financially buoyant in this period). The franchisor will often help you in applying for bank loans and may also offer a staggered payment plan. However, its vital you seek the advice of an independent financial expert too.

4. Deal with the legalities

You’ll need to sign a franchise agreement with your chosen brand. Make sure you read through this thoroughly and seek independent legal advice. You’ll also need to consider other regulations that may be linked to your chosen line of work. For example, law franchises and financial services franchises will require you to deal with multiple regulations, so ensure you know what these are.

5. Training and support

Your chosen professional services franchisor will likely require you to undertake a training programme as part of your franchise agreement. This usually involves spending several weeks working in different parts of the business, and potentially shadowing an existing franchisee in the network.

6. Set up your location

You should also be deciding where you’re going to conduct your new business from. Many professional services businesses work remotely, so you may not need to find a new location. However, it’s important you have all the equipment you need and discuss with your family what your quiet working hours will be. If you’re travelling to clients’ offices regularly – how are you going to get there? Otherwise, if you’re opening a physical office, where is an opportune area for you to open your doors? (This will be particularly important if you’re looking to service members of the public as well as businesses).

7. Build a customer base

Before you launch your business, start putting feelers out for potential customers. This may involve you attending networking events, raising your social media profile on LinkedIn, and setting up meetings with prospective clients. Consider what your customer service is going to look like, and how you’re going to retain those clients once you’ve onboarded them.

8. Operations

What do you need to make your business a success? Your franchisor will likely provide you everything you need to start running your business, including technology and systems. However, there may be additional tools that help you work in a way that’s helpful to you. You may also want to consider taking on staff members, depending on the desired scale of your business and whether you opt for a management role. (If this is the case, you’ll need to think about training).

9. Launch and grow

Congratulations, you’re ready to start your professional services business. It may feel a bit low-key launching your business sitting from a desk at home, but if this you, make sure you’re publicising your launch across your marketing.

Remember, the first year of business can be tough and it can sometimes take time to build your customer base and achieve your ROI. Monitor relevant KPIs, track your progress, talk to other franchisees, gain support from your franchisor, and read up on best practice advice when you’re feeling stuck. Plus, most importantly, celebrate the wins you achieve along the way.

Check out the What Franchise directory for a full list of franchise opportunities across the UK

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