The world of franchising is booming in the UK, even though we are still far from the founding countries of franchising, such as the United States or France.
Franchising attracts many businesses because it allows them to grow more quickly than their own businesses and with less investment since the franchisee assumes part of the financial risk.
It attracts many entrepreneurial candidates because it allows them to create their business while benefiting from a whole set of elements that make them move faster and more efficiently : an image, a concept, an offer, operating tools, negotiated prices, easier access to recognised suppliers and expensive technologies, training and ongoing support in all areas of the activity.
In short, from day one, the franchisee has everything they need to operate, allowing them to focus on business and managing their team and business.
Franchises available in the UK
There are some in all areas and for all budgets.
Recent news has focused spotlights on the growth of franchising in the Food and drink sector . GDK, Pizza express, Costa and many others are expanding their franchise networks. Why? Because the figures clearly demonstrate that there is a demand for them in the UK, and franchised stores can be more profitable.
Some will highlight the cost differences because the joint committees are different. The reality is that a local business led by a passionate entrepreneur who is close to his teams and concerned about profitability is more efficient than a network run by managers who are often far removed from the reality on the ground.
Other retail sectors that tend to develop through franchising include Convenience stores (Co-op, One stop), Desserts (Ben & Jerrys, quick licks), home renovation (Magnet, Raison Home, KVIK, Schmidt, Kutchenhaus, greensleeves, Drain doctor ), Coffee (Costa, Starbucks, Cafe2u, ), real estate agencies (Your move, Re/max ). There are also fitness centers (Snap 34/7, My fitpod), automotive (Chips away, Autoglym) and other sectors.
Investments range from a few thousand to a few million Pounds.
How to assess your compatibility with the franchise?
It’s quite simple.
Franchising is only interesting and fruitful for both the franchisee and the franchisor if the relationship is based on a give-and-take. If the relationship is one-sided, with one party expecting everything from the other without giving anything, it won’t work and will lead to failure.
So, if your approach is solely based on individualism and a certain form of selfishness, don’t go into franchising to create your business. Do it yourself, alone or with partners. Otherwise, your franchisor will be frustrated that you’re not really participating in the life of the franchise network , and you’ll inevitably fall into the dissatisfaction syndrome because you’ll always consider that you’re not getting enough and paying too much.
Similarly, a franchisor who is oriented towards the principle of giving as little as possible for a maximum price will never be able to claim to develop the loyalty of his franchisees.
If, on the other hand, you value receiving from your franchisor everything that allows you to function in order to concentrate on the development of your business as well as ongoing support and in return to share the life of a network to contribute your knowledge and skills in order to make it progress, then you have the profile to consider entrepreneurship through franchising.
Choosing the ideal franchise
Let’s say you’ve clearly concluded that the franchise system is right for you, but you still need to identify which franchise is best for you.
Let’s start with the choice of sector.
Either you clearly know in which sector you want to develop your business, whether by taste, experience or training. In this case, you simply need to list the franchises existing in this sector and rank them in order of preference based on a few criteria such as financial solidity, the state of development of the network and remaining geographical opportunities, the reputation of the brand, market positioning, the evolution of the company, its culture, the necessary financial commitments and the quality of contacts with the franchisor’s representatives.
Either you are hesitating and thinking about a partial or total professional reconversion.
In this case, start with a personal assessment . What do you like to do, what are your main strengths and weaknesses, what are your financial means and what is your level of tolerance for financial risk?
Which sectors best match your criteria? Within these sectors, which companies best meet your expectations and aspirations?
What are the conditions for success?
First, inform yourself as thoroughly and professionally as possible. This starts with objective data: balance sheets from recent years, turnover trends, franchise network developments, e-reputation (consult online reviews), the phase the company is in (innovation, stability, decline), what are the main elements of this business and whether they apply to you, contacts with several representatives of the franchise, current franchisees, franchisees who have left the network, and customers.
This is essential. You need to have as complete a file as possible to get a complete picture.
Second, listen to your intuition. While the first step is rational, the second is much more emotional. Will you be happy in this profession and in this network? All entrepreneurs will tell you that their success depends above all on their motivation, perseverance, and courage. And also on a few good strategic decisions.
To have this energy, this desire, you must first and foremost feel good and find meaning in your daily efforts. How do you feel after each meeting with the representatives of your potential future franchisor? Do you share their values? Do you think you can always find a solution with them, even and especially when times are difficult?
To do this, trust your intuition .
Application and selection process
Of course, each franchisor has its own process.
The first step is generally the same: do you have the financial means? The idea is simple: avoid wasting your time. Depending on the investment required, the commonly accepted ratio is one-third equity and two-thirds financing.
Of course, as long as all the other boxes are checked, it’s sometimes possible to find arrangements. But if your resources are largely insufficient, there’s no point wasting your time or that of the franchisor.
Then, the objective of the first discussions and reflections must aim to answer as precisely as possible the following question: will you be happy in this profession and particularly within this franchise? Of course you want to earn a good living and build up assets but this is only the consequence of success which depends above all on the fact that you will be happy with what you do.
This step ends with both parties agreeing that this is the right choice and that you are infinitely more likely to succeed than fail.
Then comes the harder aspects. You will put together your business plan , you will investigate all the feasibility criteria (one of the main ones is often the availability of a good building in the right place and the possibility of finding the collaborators you will need), you will analyze the contractual rights and obligations of both parties and identify their effects and above all you will take your time, consult trusted people and informed advisors (lawyer, accountant, etc.).
Your intuition is positive, all objective aspects are positive, the financing is there? All that’s left is to sign your contract, take control of your professional life, and do the essential things right to make yourself successful.
The rest is a matter of contagious enthusiasm, courage, resilience, willpower and… a little luck.