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How much does it cost to join a franchise in the UK?

How much does it cost to join a franchise in the UK?

Many people ask, “how much does it cost to join a franchise in the UK” and seem surprised to learn there is no simple answer. If you’re thinking about starting a franchised operation, then you’re certainly heading the right way towards success in business. There are a lot of benefits and advantages of a franchise business. The most important one being that you are partnering with a brand that’s already successful. You need to bear this in mind when thinking about franchise costs. Obviously, it will cost you a lot of money to set up a franchised Pizza Hut Delivery outlet when compared to a vending machine franchise, such as Tubz Vending.

What are the top franchise UK opportunities?

Check all the different franchise opportunities available on an online franchise directory website to discover the business that’s just right for you. There are a wide range of franchise businesses out there, thousands in fact. Using the internet can accelerate your search for your ideal franchise.

How do I go about buying franchises in the UK?

It’s really quite simple to buy a UK franchise. You’ll become part of a network of committed franchisees looking to grow the national, or even international, brand they partly own. Most franchises are solely available in stipulated locations. If you wanted to set up a franchise business in your hometown, city, or village, you need to find out whether the opportunity is there. Different franchise owners offer the sole rights to their franchisees for stipulated periods of time, ranging from five to ten or even 20 years.

Once a franchisee is in place within an area, it’s unlikely the master franchise owner will sell any more franchises nearby. This is a way of protecting the brand and the franchisee. That said, existing franchisees often sell on their business as a going concern, so you could still luck out and have the ability to buy the franchise you’re after.

The great thing about buying into an existing franchise for sale on the open market is that it will already have a loyal customer base. This way you hit the ground running when it comes to cash flow. Granted, the existing franchisee may have come upon hard times with regard to health or family problems, so these existing franchise businesses could be a little lackluster and run down. Still when a new owner takes over, it doesn’t take too long to breathe life back into the successful franchise business model.

One more great benefit of buying into an existing franchise is that costs can be significantly lower than the fees being charged by the master franchise owner. Don’t forget, it’s worth discussing opportunities with franchise consultants before you invest, as well as speaking to your family and of course asking yourself if you truly feel it is the right path for you.

Potential costs for different franchise business opportunities

Taking the franchise examples noted above for illustration, you won’t see any change from £80,000 if you opt for the Pizza Hut Delivery outlet. Whereas you could be up and running with a Tubz Vending business from as little as £2,499. Both these franchise examples offer proven business models with loads of support provided to all new franchisees. The only real difference is that your Pizza Hut Delivery franchise is a full-time commitment, and you’re partnering with a recognized sector leader, while the Tubz Vending franchise can be launched on a part-time basis until you build up sales and expertise. Only you will know which opportunity is right for you. What’s more, you can search all out lists of franchise opportunities by cost alone, making it far easier to find the small franchises for sale, if required.

Depending on what’s included in the franchise fee, some franchises could cost less than £1,000, and home based franchises have minimal overheads with high returns.

Where do I go from here?

Once you decide exactly what you want to get out of your new franchise business operation, you’ll have more of an idea of the type of franchising opportunity you’re seeking. If you’re approaching retirement age and want to own and operate a part-time business, vending machine franchises and similar can be your ideal solution. These machines are your salesforce, working 24/7 to earn you money. Your only regular commitments are to fill and service your machines, and, of course, collect your cash! Discover your ideal franchise online to discover a franchise business within your price range, offering you chances to work the hours you want while earning profits 24/7. Win-win!

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by Dirk DeBie // Contributor to Businessing Magazine.

Opinions expressed by contributors are their own.