Looking for a profitable franchise business? Starting a new business is a dream for many of us.
But, we all know that these ambitions come with a few risks. The first thing that comes to most of the entrepreneur’s mind when assessing opportunities, is profit.
That is why, first-time entrepreneurs look to invest in a franchise business rather than a startup. Entering into a market seems to be very challenging for every business.
Franchise business opportunities offer a pool of advantages, showing you the path to success.
So, keeping that in mind, in this article, I am going to put together an understanding of franchise models, and criteria for selecting a profitable franchise.
Here are the 10 best profitable franchise businesses in the United Kingdom, and the legal aspects of franchising in the UK.
Let’s dive into the deep!
Understanding of Franchise Models
When a business wants to increase its geographical area and market share at a low cost, it may franchise its brand name and products.
A franchise business is a joint venture between a franchisee and a franchisor. The franchisor is the original business holder, he sells the right to use its name and thought.
Whereas, a franchisee buys the right to use the brand name and ideas of the business.
A franchisee can sell the products of a franchisor under an existing business model and trademark.
These are the types of franchise models:
Single-Unit Franchisee
A franchise with a single branch of business is known as a single-unit franchise. This is the most typical type of franchisee business model.
Multi-Unit Franchisee
After establishing a successful business branch, a franchisee may decide to establish more locations under the same franchisor. Multi-unit franchisees are those franchises that own multiple franchises.
Market Franchisee
A market franchise acts like a middleman between a franchisor and a franchise.
Market franchisees resemble multi-unit developers who must open a certain number of branches within a specific period.
Market franchises can sell the rights to other franchisees.
Criteria for Selecting A Profitable Franchise
When choosing a profitable franchise, you must look for certain criteria, including:
Proven Sales record
The benefit of investing in a successful franchise is to capitalize on a successful enterprise. It would help if you looked for a franchise with proven successful sales with their existing franchises.
Competition
One of the good signs of an excellent franchise business is a lack of competition. There may be coffee shops in every corner but still, there may be a need for massage therapy.
Repeat Business
You may look for a franchise business that can bring repeat customers. So, it allows you to grow your business.
Growing Market
You must move towards an industry that is growing. You might be looking for a market that is developing each day.
So, when selecting a franchisee business in this digital era, just go forward with the trending businesses.
Personal Interest
An essential sign to go forward with a franchise business is if you are passionate or interested in the products or services.
You should not pick the franchise business without having an interest, otherwise you can not boost your business.
Healthy Living
If well-being and health are most important to you, then your business must reflect these values. You must choose a franchise business that promotes health and must be aligned with profits.
Financial Consideration
The initial franchise fee is the amount that a potential franchise pays the franchisor to become a licensed operator.
It is the amount that you need to pay the franchisor to join the system. You can earn all the trademarks, brand exposure, and business processes.
Another financial consideration is the franchise’s royalty fees. This fee is determined as a fixed or variable percentage of gross sales. Generally, you need to pay this fee to the franchisor monthly.
Lastly, franchises require their franchisees to pay marketing, advertising, or promotional budgets. this amount was also calculated to a certain percentage.
10 Best Profitable Franchise Businesses in the UK
1. Action COACH UK
Action COACH UK is the world’s number one business coaching team and it has only a handful of franchises in the UK.
So, you can start your business coaching with one of the reputed industry ones. The Action Coach UK has more than 3,500 strategies and tactics for your business.
you and your business employees will work with Action COACH UK, which help you in various areas to develop your business. Action COACH UK teaches you how to develop your business, and increase your profit.
Action COACH UK has developed the world’s best business growth system and has the best team to support business growth.
You can use the system and grow your business in every aspect to grow your commercial, and profitable enterprise both.
2. MC Donald’s Franchise
MC Donald’s seems to be one of the most recognized brands in the world, it has restaurants in over 100 countries. It serves billions of customers every year.
It is one of the global leaders in the food and service industry, and food quality is the most important for McDonald’s.
McDonald’s is very proud to work with its dedicated franchises and the company is always looking for new franchises.
The passion for people, the ability to work in fast-paced environments, and serve quality food day-in, and day-in; sets this company apart from its competitors.
They offer comprehensive support and training to successful franchise applicants to assist them in their new business journey.
If you are interested in going forward with the McDonald’s franchise business, you must understand more about the role and the financial commitment involved.
You also look for whether it is suitable for your long-term business aspiration.
3. Domino’s Franchise
Domino’s Pizza Group is the UK’s leading pizza-serving brand.
Domino’s franchise is one of the most profitable franchise businesses in almost the entire world. There are more than 1,200 franchised stores throughout the country.
As a Domino’s franchise, you will be serving a variety of Pizzas, sides, and desserts. Your store automatically gains a brand reputation and is known for consistent quality and taste.
Customers can order the items by phone, through the websites, or an app. Customers can visit your store and experience hot, tasty, and handcrafted pizzas.
Domino’s will offer comprehensive training to its franchise partners on how to run the business including local marketing, and supply chain management..
The initial investment for opening a Domino’s franchise will be approximately 280,000 Pounds. However, you can expect a potential profit.
4. Swarovski Franchise
Swarovski is a reputed brand, that designs, manufactures, and sells high-quality crystals, created stones, and finished products such as jewellery, lighting solutions, and accessories.
This brand was founded by Daniel Swarovski, he is a Bohemian jeweller. Swarovski Group now comprises Swarovski Optik, Swarovski Crystal Business, and Tyrolit.
Swarovski franchisees are known as Retail partners, these Retail Partners are independent while representing the brand.
A Swarovski Retail Partner must have a business mind and should have a keen interest in crystals, gems, and stones.
There are two ways to become a Retail Partner, the mono-brand retail format, and a multi-brand retail format.
A mono-brand retail partner is a shop dedicated only to Swarovski products. On the other hand, a multi-brand retail partner is a sop that only features selected products.
The initial investment for opening a Swarovski franchise will be approximately 130,000 Pounds.
5. Skechers Franchise
Skechers is one of the top-ranked brands in the footwear industry. Skechers originated in California, USA. It distributes Skechers brand footwear, accessories, and apparel throughout the country.
New franchises can start their business with the Skechers Retail Franchising Program. The franchise business partners can join the purchasing sessions and presentations on local and global levels.
The franchisor will help you with store design. As a franchise partner, you can access Skechers’s sales data, trends research, and more.
In terms of marketing, and PR, Skechers will provide you with the artwork and media. if you want to become a Skechers franchise, you will need a minimum investment of 44,000 pounds.
6. Sandler Training Franchise
Sandler Training is a consultancy business that helps businesses of all sizes resolve issues in sales, staff, recruitment, structure, and business strategy.
If you become a franchise partner of Sandler, you can apply the business system of Sandler.
So, you can easily attract their clients and deliver proven techniques to the clients. Your clients become more satisfied with your business tactics within a shorter period.
Sandler provides training to its franchises so that they can fulfil the client’s demand.
Sandler’s fast-track launch program is designed to help the new franchise partners generate client income within 90 days.
An ongoing personal development program with conferences held twice a month both in the UK and USA.
7. Autosmart Franchise
Autosmart is the UK’s ton-ranked manufacturer and distributor of professional vehicle and food processing cleaning products.
Customers come to the company from a wide range of industries such as car dealerships, hauliers, body shops, vehicle rental companies, food processors, and more.
Autosmart franchises are owner-operators and they work on their own.
The Autosmart franchise concept involves selling unique vehicle cleaning products to a diverse range of customers each month.
The franchisees need to sell their product within their exclusive territory. Every territory is now available for resale, so there is an exclusive chance for additional future growth.
there will be a 5-day induction course at Autosmart’s Head office. The franchisees get training on basic product and sales skills and a deep insight into the marketplace.
8. Anytime Fitness Franchise
Anytime Fitness is a 24/7 gym centre with state-of-the-art equipment, personal training for members, and a welcoming environment.
Anytime Fitness offers partner discounts to its members, who can access Anytime centres on their network.
Many franchisees are attracted to Anytime Fitness’s business models and consistent income stream. Many business owners appoint a club manager to run the club.
His roles involve sales, managing staff, a safe environment, and maintaining the entire club space including equipment.
If you want to become Anytime Fitness’s franchise partner, you can access the Free new franchise Training sessions. these training sessions are accessible by both club staff and franchisees.
The training session involves induction, property, pre-sale, managing performance, operations, sales and retention, and marketing.
Once, you will join a franchise partner, the experts will guide you in every aspect of running the business.
9. InXpress Franchise
InXpress is one of the largest international franchise-based transportation services providers in the world. The company offers freight, express, and mail services to the SMEs.
The Headquarters are located in Manchester. Since the demand for courier services is booming all over the world, InExpree partners offer competitive rates to its customer base.
the franchise’s job is to search for the SMEs that need transportation services.
As an InExpress franchise business can be run from a home, or a small office space; and the franchise does not need the space to store the parcel vans and parcels.
Also, the business is scalable, which means the business can grow if it wants. inXpress offers every new franchise proprietary bespoke training courses, online start-ups, and refresher modules.
10. Mr. Electric Franchise
Mr. Electric Franchise business provides comprehensive electrical services to both domestic and commercial markets.
Mr. Electric is a govt. approved charging points for electric vehicles. this is an innovative opportunity for franchises.
If you want to be a franchise of Mr. Electric, they will offer you initial training focused on franchise operations and customer service.
The franchisee also receives a startup franchise package with operational support, local marketing, personal policies, and branded and printed materials.
FAQ
Which franchise is the most profitable in the UK?
Ans: Some of the industries with the most profitable franchises in the UK include:
- Home care services
- financial services
- gardening services
- Pest controls
- Fitness services
Is a franchise a good investment in the UK?
Ans: according to some research, 97% of franchise-run businesses are profitable in the UK. While starting a new business is much riskier, the franchise business models are a tried and true way to step inside.
Can a foreigner buy a franchise in the UK?
Ans: there are no legal restrictions on foreign ownership of UK assets. Every new company must register with Companies House, the registrar for the companies in the UK. And, the business requires to fulfil the official requirements.
What are the common pitfalls to avoid in franchise ownership?
Ans: You must consider these common pitfalls before stepping inside a franchise business ownership, including:
- Not doing enough research
- Not consulting with business professionals
- Not assessing your skills and goals
- Not planning ahead
- Not evaluating the franchise system
Are there government incentives to start a franchise business in the UK?
Ans: There are government-backed start-up loans, which may help you to start a franchise business in the UK. You can apply for a personal loan to start a small franchise business and you can loan up to 25,000 Pounds that have viable business plans.
Conclusion
Franchise business is a good business option that will offer you quick traction. In a franchise business, there is an original business owner, but individual parties have bought into the business and will open their locations.
If you are considering starting a franchise business, you must be aware of its pros and cons. So, you need to spend a while researching it.
Here, I have provided almost every aspect of franchise business including a list of the 10 best profitable franchise businesses in the UK. you can go through my article and choose one franchise business from my article and go for it!
