How to Buy a Franchise in 2024: Full UK Guide


1. What Does It Mean to Buy a Franchise?

Buying a franchise means purchasing the rights to operate a business under an established brand. You benefit from an existing business model, brand recognition, and ongoing support—ideal for those who want to start a business with reduced risk.


2. Why Buy a Franchise Instead of Starting from Scratch?

  • Established brand with customer trust
  • Proven business systems and operations
  • Ongoing training and support
  • Lower failure rate compared to startups
  • Marketing and supply chain advantages

3. Types of Franchises Available

  • Food and Beverage (e.g., McDonald’s, Subway)
  • Retail and Services (e.g., The Body Shop, Anytime Fitness)
  • Cleaning and Maintenance (e.g., Merry Maids)
  • Education and Childcare (e.g., Kumon, Tutor Doctor)
  • Automotive and Repair (e.g., Snap-on Tools)

Choose based on your interest, experience, and budget.


4. How Much Does It Cost to Buy a Franchise?

  • Initial franchise fee: £1,000–£50,000+
  • Setup costs: premises, equipment, stock, insurance
  • Ongoing fees: royalties (5–10% of revenue), marketing fees

Total investment varies from £10,000 for a home-based franchise to £250,000+ for high-end brands.


5. How to Find the Right Franchise

  • Use franchise directories (e.g., British Franchise Association)
  • Attend franchise expos and discovery days
  • Research industries with strong demand
  • Match with your skills and financial capability
  • Speak to current and former franchisees

6. Legal Considerations

  • Franchise Agreement: A legally binding contract outlining rights, obligations, and fees
  • Territory rights: Check if you’re guaranteed a specific market area
  • Renewal and exit terms: Understand duration, transfer options, and termination clauses

Consult a franchise solicitor before signing anything.


7. Financing Your Franchise Purchase

Options include:

  • Personal savings
  • Bank loans (many high-street banks support franchise loans)
  • Government-backed Startup Loans
  • Franchisor financing (some offer payment plans)
  • Investor partnerships

Prepare a business plan and financial forecast to support your application.


8. How to Apply for a Franchise

  1. Choose your preferred franchise
  2. Contact the franchisor and submit an application
  3. Attend a discovery meeting
  4. Review the Franchise Disclosure Document (FDD)
  5. Conduct due diligence
  6. Sign the agreement
  7. Undergo training and prepare to launch

9. Success Tips for Franchise Owners

  • Follow the system exactly—it’s proven to work
  • Maintain high standards and customer service
  • Network with other franchisees
  • Stay on top of your financials
  • Engage in local marketing and community events

Frequently Asked Questions

Can I own more than one franchise?
Yes, many owners expand with multiple units once they succeed.

How long does it take to start?
From initial inquiry to opening can take 3 to 6 months, depending on setup and training.

Is franchise income guaranteed?
No, success depends on effort, location, and market—but franchises have lower failure rates.

Do I need experience in the industry?
Not always—franchisors provide full training and support.

Can I sell my franchise later?
Yes, most agreements allow reselling with franchisor approval.

What support will I receive?
Most franchisors offer training, marketing, operations manuals, and ongoing business advice.


Conclusion

Buying a franchise in 2024 can be a smart way to start your own business with less risk and more support. With a proven brand, structured operations, and the right preparation, you can launch and grow a successful business in nearly any industry.

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