Finding a franchise to suit your requirements is vital, not just to ensure your franchise investment is a wise decision but to ensure the franchise you choose suits your skill sets and achieves the motivations you have for running your own business.
Here at Approved Franchises we provide expert advice to help you select a franchise that is best suited for your needs. Here you can search for franchise companies and save time and money as you can compare a range of franchise companies all in one place. To use this FREE service that allows you to compare franchise companies, please enter your details in the form above, it takes less than a minute.
We have pre approved a range of franchise companies, which put the success of their franchisees at the forefront of their thinking. They offer:
Full training and support to new franchisees
A proven business model that can be replicated
Franchisees achieving the projected level of income
Ongoing assistance to help you achieve your goals
More and more individuals are turning to franchising as a way to start their own business and therefore here at Approved Franchises, we have made it our number one goal to connect you with the highest quality of franchises that best suit your requirements.
Let Approved Franchises connect you to the very best franchise opportunities currently available
Thanks to minimising the risk using an already tested business idea and the support of more experienced entrepreneurs, franchising is a great way to start your adventure with business. If you feel that you are enterprising, but you do not have a specific idea on how to use your potential yet, be sure to read our guide and check if franchising is for you.
However, the process could be a bit overwhelming if you don’t know where to start. Luckily, we have some useful tips for you, that will assist you when looking for a franchise business suitable to your needs.
There are many good reasons for buying a UK franchise instead of starting your own business from scratch.
You have the ability to open a business which is already regionally or nationally recognised. You will be offering a product which is already in demand. The market you will be selling to will already know your company name.
You will have a company which has tried and true methods for making money. The formula created by the company has been implemented, refined, and tweaked to create the optimum business formula for success.
They are perfect for someone who wants their own business that comes supplied with step by step instructions.
There could be substantial costs involved with buying a UK franchise . You are not just purchasing an outlet. You are purchasing the right to have an outlet. There is usually a fee involved for the right to use the company name.
This can be thousands of pounds or more and may not be refundable should you want to close the business later. You will want to determine whether you need to build the outlet to suit the owner company.
Other costs include inventory, licenses, and equipment. There are many available at low cost, and ones that suit your passion or personality, such as a pet franchise, so there will be one to suit everybody.
It is common for the recruit to pay a royalty fee. This means you will be paying a percentage of your weekly or monthly earnings. This fee is for the use of the brand name. Because an agreement was made at the time of purchase, you may have to honour the royalty payments for the term of the agreement should you choose to cancel the agreement.
Many times a company will charge an advertising fee to all the recruits. This helps to pay for national advertising campaigns. The campaigns could be to advertise for franchisees as well as promoting the chain itself. The campaign rarely focuses on one particular outlet.
When buying a franchise in the UK, you may have to have the approval of the company as to where you put your outlet. Some companies demand a certain look or design for the outlet for uniformity. This could cost serious cash if the corporation decides to update or make seasonal changes.
A franchise ownership means selling only what the company wants you to sell. Many restaurant franchises offer one set menu. There are no deviations allowed.
If it is a service type, you may be restricted to what services you can perform. For instance, a silencer type may not allow you to work on anything but silencers. This may limit the income you are used to getting.
There are certain aspects that you should investigate before you buy. The first thing to look at is competition. If there are many of the same type of franchises or businesses in the area, you may want to consider how much competition you can afford in order to be successful.
Speak with other UK franchise owners to determine what type of income their business is generating. You also want to know about the parent company. Ask about the training and support that was offered versus what was given. Find out if the company owner lived up to the contract obligations.
Find out how many hours you will need to put into it. Do you want a full time business or a part time flexible one.
There are times when a company will buy back a franchise which has failed. This outlet becomes a corporate store. If you are purchasing this type of outlet, the company must present the previous five years ownership for your inspection. Beware if there are numerous owners. This may be an indication the outlet is not in a good location for this type of business.
There are many ways to investigate a UK franchise before you buy. Asking the right questions to the right people should give you almost all the information you need to make a wise decision.
Full Guide to UK Franchising
There is no doubt that signing up for and running a new UK franchise takes a lot of work and dedication and earning the trust of the owner is crucial, but the rewards can be considerable.
To reach your goals though, you have to go through all the appropriate stages.
What is franchising?
Franchising is the permission to use the business model of another company. A fee is payable to the owner that goes towards the use of the brand name, training and supplies that you need.
You will need to work your way through a full training schedule, during which time you will be taught about their business procedures, operations, stock list and promotional methods.
When you sign the agreement for this, and decide upon the insignia, design and everything else, they will give you the entitlement to manage the business from ten to twenty years, typically.
After deciding this is the right way forward for you, they will supply you with the position and supplies. An advisor will call in on you frequently to assess how you are getting on with your new venture and supply you with everything that makes the brand tick.
You will have to pay the agreed service fee and fixed rental from your sales every month. The money that you earn will be down to brand reputation and convenience of the outlet’s or restaurant’s locality. The success of the venture will be down to how you run and operate the franchise and your employees.
By utilising the business strategy and benefitting from the name of the brand, it is certainly possible to create the income that you are aiming for. However, you have to bear in mind that you are still answerable to the franchisor and it is not your own business.
Basically, it is about creating a chain of outlets or stores and having successful units is crucial to the success of the company in general.
The most common form is the unit model. With this model, the company owner, who has control over branding, distribution and product development, will recruit, train and support individual units.
Franchisees pay a percentage of the profit to the owner.
When you are considering opening a unit in the UK, you are going to have to think about the type of sector or industry that you want to go into, the amount of time that you are willing to devote, and also your financial resources.
Basically, there are five different options of franchise types from which to decide:
This type very often operates from offices in various districts. This is where the administration, organisation and development of service providers and product suppliers take place.
The administration and promotion is carried out by the company, whilst the workforce is responsible for sale and service maintenance.
This is where the business requires a sum of capital for investment and the recruit operates as a consultant to the owner. Knowledge and skill in supervising a large volume of people is essential. The franchisee will delegate the administration of the business to the management team.
This type is where you will form a relationship with a company that needs their products or services. They don’t have any direct contact with customers and they are in the creation and assembly section of the venture such as manufacture, communication and printing.
This one means that you are joining with a brand in order to use their reputation and sell their merchandise at a physical outlet or online store. It is common in different sectors such as tools and machinery, leisure, clothing and food.
To increase the rapidity and total of return of investment, selecting the best position and offering excellent customer service is vital.
This is where the franchisee will independently operate the venture, offering a service or products for a certain sector. The company provides the brand reputation, equipment and promotional resources so that they can launch the brand in the particular location.
It is ideal for a work at home or business start-up because it doesn’t require a lot of investment to get started. Due to the brand name and quality of products, it won’t take long to achieve a good profit.
Pros and Cons of Franchising
If you want to become a franchisee, you will have to evaluate the pros and cons of before going ahead and purchasing a UK franchise; to establish if it’s a suitable option for you.
One of the biggest benefits is that the risks to your investment are very low. Because you are following an already proven and successful business model, you will have knowledge of how to manage the venture that will prevent you making significant errors.
This enables you to run the business smoothly and profits will come in fast. Buying into a franchise lets you follow a proven business plan that have been tested and demonstrated to produce impressive returns.
Another big benefit is the immediate brand recognition. People will generally go for names they recognise that offer the best services and products. If someone has just arrived into a new town and searching for somewhere to eat, it is more probable that they will look for a Pizza Hut than a local pizza restaurant.
An already established brand will have a large and devoted legion of customers. This means that customers are already awaiting your product or service before you have even opened up your outlet. They already know that they like what you will be offering and they know what to expect.
Some potential recruits are uncertain about purchasing a franchise because strictly speaking, you aren’t the owner of the business. There are processes, rules and methods that you have to abide by when you sign the agreement.
Also, there are limitations concerning the pricing structure, locality and the products and services that you can sell, which can be a major downside.
Apart from the initial fee, you will also need to shell out for marketing costs and regular royalty fees.
When one unit is not performing very well, the brand image can be negatively affected and this could lead to closure. Additionally the length of the agreement can run up to twenty years, so if it closes, you will have a limited course to follow.
To manage the business competently and successfully, the recruit has to deliberate the backing and regulations of the company owner.
Choosing the Perfect UK Franchise
When you are considering buying into a franchise, you first have to establish what your skills, needs and desires are. Another point that you have to address is that you team up with a quality and reputable business brand.
To begin with, think about what type of working environment that you want. Do you enjoy dealing with your customers directly? Can you manage a large amount of individuals? Will you be happy to be working late into the evenings?
You need to contemplate your way of life and what will be a good match for it. Write down a list of your objectives because this will help you to identify what you are really looking for.
Once you have decided upon the sector you want, you can have a look at some websites of possible franchises that match up to your business desires.
They will supply information about their conditions for joining them and some let you know what the total investment will be.
Finally, get in touch with the ones that appeal to you. Take into account that while you are searching for the top ones, they are also seeking the best recruits for their business.
They will have as many questions for you as you will have for them. You have to approve of and accept their conditions and policies for you to be able to say you have found the ideal match.
Keep your objectives in mind and adhere to them to maintain a high amount of integrity and appreciation of the brand. This is advantageous to both parties.
How to Select the Right Location for a UK Franchise
As with any other business, choosing the ideal situation is crucial to ensure the new unit has the best chance as possible of generating the anticipated outcome.
Being a new recruit, it is likely that you won’t have sufficient experience in searching for and acquiring the best site, but with the appropriate backing from the franchisor, you will unquestionably be in safe hands.
The company has previously acquired a solid standing and built a faithful customer base, therefore you will also need to do your homework on the most appropriate profitable location.
There are surveys that show new franchisees will have a thirty percent increased failure rate because the location has been poorly chosen.
How to choose the perfect site to ensure the victory of the new unit?
Learn everything about the franchise
The ideal location is determined by the type of business you have. You have to establish who your customers are, do your customers visit you or do you visit them? Where do they live? Also establish the best time that customers visit you and if the position has high visibility to customers.
Work with the franchise owner
The owner has a series of established policies that will bring about an ideal location. This will be included in the disclosure document but it is still essential to create a solid relationship with the owner.
They will have a lot of experience and you should use this to your advantage, they will also have identified locations that they have targeted in which to operate. You could conduct your own investigations and should you uncover the perfect site, offer this information to the owner.
Link up with other franchisees
To find out about a broader view of the company’s business strategy, get in touch with other franchisees. This will help you to uncover the possible locations that are well-situated for customers and rewarding for your venture. This is because they will know their locality very well and will understand which type of location will be ideal.
Weigh up your target location
If you believe you have discovered the perfect location, then assess it straight away. It is essential to be on the correct side of the street. Customers won’t want to have to cross several lanes of traffic just to reach your location.
Space for parking is also an issue that needs to be taken into consideration. Investigate if there is a well-liked restaurant in the vicinity that takes up a lot of the parking spaces during meal times.
Check to see if there is any competition close by. Should there be different types of franchises that are making a good profit, then it is likely that yours will be a success too. If there are enough potential customers, then in all probability the return of investment will soon arise.
Think about the other franchises close by. It is good if they supplement your outlet. If you are acquiring a food service outlet, then you could be alongside an office.
Think through the cost of the location. It is only the ideal one for you if it is within your budget. Should the rent be way above your price range, you will have to check out other opportunities.
Finalise the deal
Once you have completed your own investigation and assessment, it is probable that you have located the perfect position. If this is the case, give a call to the estate agent and a franchise lawyer to get the site officially.
These experts will go over every minute detail and ascertain the things you may have not noticed whilst you were engaged searching for the ideal position. It is crucial that you seek advice from them for a successful outcome.
Trying to find the ideal location can be a long winded procedure so you have to be as flexible with your time as possible. Focus on the venture with a professional approach and carry out your due diligence to sidestep any bombshells as a new franchisee.
Managing the Franchise Effectively
Now you have located the perfect position for your franchise, you are going to have to run it in your own way but still within the boundaries of the business policy stipulated by the owner. Bear in mind that the answer to managing your business successfully are your personnel.
Determine the objectives
Goals are crucial because they maintain your focus in your path to success. They must be sensible and achievable to keep your venture evolving. Making modifications are also very important for the advancement of your business.
Acquire some finance
Banks and finance companies grant loans for businesses that have a lower rate of interest. To get your loan approved, you need a business plan and financial forecasts for the upcoming months. Financial assistance is necessary to make your dreams in the franchise business happen.
Employ the best workers
Pick the finest individuals in the sector who will be striving hard for the success of the venture. Coaching and guiding them is essential to develop their creativeness. Giving them plenty of encouragement to do their best is at the heart of a successful business.
The franchisor will arrange training and continued assistance to all their recruits. This could help in the improvement of managerial abilities to attract additional customers, develop reputation and grow the name of the brand.
How to Ensure its Success?
Franchising in the UK is a powerful way to attract more customers, still, there are things to bear in mind to help make it successful.
Maintain a good relationship with the franchise owner
A good relationship will bring about unrestrained backing from the owner in a bid to improve the business. You need to keep the relationship professional as it is advantageous for the prosperity of the business.
Locate the perfect site
You need to find the best location to make certain of success. Find out all you can about the preferred location and decide if it is lucrative. Selecting the wrong site will cause many to fail whilst others are successful because of being in the right location.
Develop a promotional plan
Promotion any business is crucial because it is a top method to successfully offer services and products to future customers. An absence of marketing is a problem for the brand so ensure to fix a budget for your advertising.
Keep an eye on your finances
A mistake in start-up and operational costs are the reason why franchises are most likely to fail of. It is vital to create a business plan with forecasts of your projected costs and income.
Be astute with your resources
A franchisor will provide their recruits with the entire resources so that you can start the venture. You must become skilled at managing all of them so that you can offer the finest product or service to your customers.
Bear in mind that a quality customer service means they will be back for more, so that is a major aspect for having a successful franchise.