YOUR BUSINESS SPRING 2019 - 100

1

There are almost
1,000 franchise
brands operating in
the UK, ranging from
accountancies and
estate agencies to
drain care and sports
coaching. From your
morning beverage at
Costa Coffee to DPD
delivering a parcel to
your home, you'll almost
certainly have used a
franchise in your day-today life very recently.

2

A franchise is a
partnership between
a business owner
(franchisor) and an
individual (franchisee).
The franchisor is looking
to expand their business
and the franchisee wants
to set up an outlet that
is part of an established
brand with infrastructure
already in place.

5

Some 97% of franchises
are profitable, according
to the British Franchise
Association/NatWest
Franchise Survey,
enjoying £250,000
turnovers. The sector
has grown by 10% over
the past four years
and fewer than 5% of
franchise businesses
fail every year.

3

The franchisor or
brand owner licenses
a franchisee to run an
outlet of their business
for an upfront investment
and a slice of the income.
"If someone invests
their money and puts it
on the line, they'll have
more drive to succeed,"
says Emily Price, head of
operations at the British
Franchise Association
(BFA). "The franchisor
gets the benefit of the
investor's money, while
the franchisee gets a
brand and ongoing
investment in product
development."

4

More than 20,000
people owned
franchises in 2018,
employing 621,000
people and contributing
£15.1bn to the UK
economy. Half those
employed in franchises
work full time.

100

6

Entrepreneurs
can buy into a
franchise from as little
as £5,000, although
in other instances the
upfront fee could be 100
times more. You pay an
initial fee for the brand
licence, equipment and
support, and then invest
liquid capital and pay a
monthly management
service fee, usually about
10-12% of income.

7

Pip Wilkins, chief
executive of the
BFA, believes the ageing
population will lead
to a big boom in care
franchises. Currently,
18% of people in the UK
are over 65 and 2.4%

are over 85. Top-quality
care services for older
people are in demand,
and franchises such as
Radfield Home Care,
Kare Plus and Clarriots
Care are flourishing.

8

Franchisors choose
the location of
their outlets in order
to gain the highest
number of customers
at any one time, and
because the name is
well known they can
afford prime locations
on busy high streets
or in a well-traversed
shopping centres. This
means your customer
base is pretty much
guaranteed from the off.



YOUR BUSINESS SPRING 2019

Table of Contents for the Digital Edition of YOUR BUSINESS SPRING 2019

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https://europe.nxtbook.com/emp/EMP/jobsandcareerswinter2020/21/jobsandcareerswinter2020
https://europe.nxtbook.com/emp/EMP/yourbusinessmarch2020/yourbusinessmarch2020
https://europe.nxtbook.com/emp/EMP/YOUR_BUSINESS_Spring2019
http://europe.nxtbook.com/emp/EMP/2016SixnationsGuide
http://europe.nxtbook.com/emp/EMP/NationalExpress
http://europe.nxtbook.com/emp/EMP/SixNationFeb2015
http://europe.nxtbook.com/emp/EMP/National_Express_2013
https://www.nxtbookmedia.com