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This Is Why Franchising Is So Popular In The UK

November 30, 2018
This Is Why Franchising Is So Popular In The UK

The stats are hard to ignore. In 2018, the UK’s franchise scene was worth £15.1bn. The same data set shows that 97% of every surveyed branch reported a profit; quite an astounding number. It’s clear that our country is performing very well with this earning model; according to Business Matters, franchising’s economic contribution has risen by 43% in recent years.

Why? What makes the UK such a hotbed of franchise activity? Furthermore – are smaller brands, without a huge B2C customer list, making their own waves in the industry? Companies like Starbucks, McDonalds and KFC may rule the roost in terms of sheer numbers, but other, disruptive franchise opportunities are opening up too.

Follow us as we explore the trends in greater detail. Franchises rising in popularity can only mean one thing: a wider array of potential opportunities for budding business owners…

The benefits of franchising

First, let’s recap on the advantages that running a franchise business gives you in comparison to an independent startup. These are a huge part of why franchising is so coveted around the world, not just in the UK. Here are the benefits:

–       There’s a ready-made framework designed to produce a profit. Nothing is left to assumption or guesswork – you’re in charge of a business model that works, and will continue to do so if you manage it well.

–       Franchisees can run the day-to-day operations how they see fit. Hiring, equipment purchase, networking, admin, finance control and performing the core service is still down to you.

–       Support stays with you as long as you need it. Head office will be available should you wish to ask any questions. But before you sign the dotted line, the franchisor should allow you to meet, query and learn from those who have undertaken the same journey and made a success of it.

–       Franchise opportunities can be an adventure – taking you to areas of the UK you’ve never visited before. From the tip of Scotland to the foot of the South West, there are often many territories available to choose from. Whether you prefer cities, towns or pastoral communities, a good franchise business will have a broad presence, so you can find a location to suit you.

With such points in mind, the argument for franchising is tough to refute. Business owners get security, advice, and a proven route to making a profit. They don’t have to rely on themselves for every detail; a common stumbling block for startups. Whilst you retain most of the control over what happens within your business, you also have an abundance of expert resources to fall back on. All the franchisor requires is a monthly fee, a business plan, and the capital to back your investment.

Read more about how a franchise works for further advantages and an explanation of a franchising agreement.

Why are franchises rising in popularity?

The momentum behind UK franchises can be pinned to a couple of causes. We can’t deny that businesses run under this model make up a significant chunk of the economy – but that’s not the only evidence for why franchises thrive here. In a 2015 article by Franchise Direct, 48% of US-based companies viewed the UK as the best of all European locations when they’re looking to expand.

This isn’t likely to change anytime soon either. For one, the UK has extremely generous tax laws. Income Tax is the third lowest out of the 36 member countries in the Organisation for Economic Co-operation and Development – just behind Hungary and Ireland. Businesses can earn more from their activities than they otherwise would in competing nations. The financial system is kind to the companies operating within it.

In a 2018 interview with Bird & Bird, the global technology law firm, the UK was marked as a place with “a comparatively light-touch regulatory regime”. Our political framework welcomes new business, wherever it comes from. That means it’s simply more profitable, in many cases, to seed a British franchise presence instead of going elsewhere. Plus, since Great Britain is relatively small, contracts can be negotiated for the entire country, as opposed to one or two regions in a larger environment.

Coupled with this, we have the increasing diversity of franchisors. As more and more brands have met success with their UK branches, the professional landscape has been widened tremendously. It can cater for almost any taste or professional aim. Look at some of the top franchises of 2018 for proof:

–       Angela’s Swim School (aquatic lessons)

–       Barking Mad (dog sitting)

–       Home Instead (senior care)

–       Tutor Doctor (private student tuition)

–       Riverford Organic Farmers (delivery service)

–       Driver Hire Nationwide (logistical transport)

You may not recognise these names. They are resolutely not the same gigantic companies that we see everywhere, like a Burger King or Costa Coffee. It seems that the bigger brands are giving way to more agile or unique businesses, ones that focus on a specialism and offer a rewarding service that people come back to in times of necessity.

Find a franchise for you

So, we’ve explained why franchising is rising in popularity. There’s never been a better time to join a network – in the UK, we’re spoiled for choice. And that’s a very good thing for your future leadership aims.

Specialist cleaning, for instance, is amongst the most reliable industries for your bid. Along with fast food, fitness and pets, it’s been identified as a fantastic area for franchise investment. Rainbow International is a leading force in this group, and is well known throughout the UK and beyond for its specialist and professional cleans as well as disaster restoration.

Since the UK’s franchising outlook seems rosy – and sure to build on current trends – it’s only sensible to explore what’s out there. Leave your details with our recruitment team for more information on a Rainbow offer. We’re a global brand, but we’ve made a home here – and we have a variety of opportunities available for you to make your own mark on the industry.