How to find the right franchise

According to the latest research from the British Franchise Association, the UK franchise industry is worth £13.7 billion.

But with over 900 different franchises to choose from, selecting the right one can be a daunting experience.

A great place to start is by identifying something you’re passionate about. Also think about your lifestyle and why you are considering franchising as a new career. Are you doing it to improve your prospects and earn the rewards of running your own business? Or simply to be able to spend more time with your family? Different franchises will satisfy different needs.

Examine how well known each franchise and its product/services are. Find out the size of the franchisor’s market and if it’s still in the development stage or is reaching maturity. Identify whether you would be entering an already saturated market with lots of competition or if it is still growing, which may present better returns and the opportunity for you to expand further down the line.

Once you’ve narrowed down some potential franchises, it’s important to get under their skin to find out which is the one for you before taking the plunge - ideally by working alongside and talking to existing franchisees.

Get your plans in place

As with any new venture, a well-thought out business plan will be key to securing any funding you may need to get your franchise off the ground. Check the financial track record and potential returns of the business and if you’re taking over an existing franchise, always look at its back history too. How many previous owners have there been and why did they leave?

Good franchisors will most likely have existing relationships with the banks, which helps when applying for investment. It is also worth seeking professional advice from an accountant about income and profit projections, and from a solicitor about the legal agreement. Both should have a good understanding of franchising and preferably be affiliated to the bfa.

Franchisor support

Find out what support the franchisor will provide. This will vary depending on the franchisor and nature of business, but ideally, an experienced head office team can help in all aspects of running a business, from sourcing premises to IT.

New and existing skills

A great advantage of franchising is that you don’t need to have previously owned your own business or have any experience in the specific market sector to start a successful franchise. You just have to be passionate about what you do. Many franchisees bring existing expertise and skills from their previous jobs that can be applied to their new venture, too.

Future potential

By choosing a franchise with a proven track record and great future potential, there is good scope for expansion once your first store is established. This would prove difficult - and perhaps not even viable - for a stand alone business wanting to open another outlet in a different location.