London is the capital of England. The city has a population of more than 9,000,000 and is home to over 24,000 separate businesses. It’s estimated that 72% of London workers have high-skilled, well-paid jobs.
If you take a franchise opportunity in this city, you’ll have access to a truly immense customer base!
There are many franchise opportunities in the UK. But what are they exactly?
A franchise is a license granted to a business person by a company. This license allows the business person, otherwise referred to as the ‘franchisee’, to use the company’s, or ‘franchisor’s’, branding and systems as well as sell its products and services.
There’s a very good reason why entrepreneurs rarely pass up franchise opportunities in London – they succeed 90% of the time! Studies also show that 60% of franchises in the UK earn over £250,000 every year. What about independent startups? That’s a different story. Just 15% of these unsupported businesses survive. While 50% fail within just two years.
Franchises provide aspiring business people with something that’s absolutely invaluable – a reputation. For instance, if you were to take a franchise opportunity in London, you’d be able to put the branding of a prominent, perhaps even famous, organisation above your door. Your parent company will have spent years creating a successful track record, but when you partner with them, you’ll get it instantly. Customers will see your outlet and recognise it as somewhere they can buy premium standard products or book a high-quality service. Before you know it, you’ll have a robust revenue stream and become financially independent. What’s more, as you grow, you’ll be able to take more and more business opportunities.
Keep in mind that as a franchisee, you’ll be entitled to ongoing support from your franchisor. The brand’s support team will help you find a property that will act as your outlet or office. They’ll also train you to perform your role, implement marketing initiatives on your behalf, provide you with software that will make you more productive and that’s far from all. The majority of franchisors won’t set your targets either. They will let you maintain full control of your operations. You’ll decide how much time you put in, which means you can enjoy an improved work-life balance.
If you get past the recruitment process and invest in a franchise, your parent company will assign you a territory. This area will be packed full of potential clients. The support team will train you to identify all these business opportunities in London and then capitalise upon them.
Your daily responsibilities will likely extend to recruiting and then training new staff members, performing basic accounting tasks, protecting your franchisor’s brand image and marketing your operations in your exclusive area.
You won’t necessarily have to perform services yourself. If you partner with a prominent brand, it’s almost certain that you’ll take a managerial position and delegate jobs to your team. But, needless to say, if you choose to buy a small business for sale in London, you’re likely to have more hands-on responsibilities. You’ll have a limited number of employees, and as a result, you’ll have to deliver services personally.
Before you invest in a business for sale in London, you must first check everything involved in the transaction – you’ll have to make more than just one payment. It’s true that franchisors only require a flat fee at first, but you’ll then also potentially need to cover the cost of office space, furniture, equipment, software, vehicles and so on. Plus, you may well have to put a portion of your turnover towards advertising and royalty fees. These normally must be paid monthly and usually range from 5% to 10%. But remember. In exchange for these ongoing expenses, you’ll get the full continuous support of the parent company you decide to partner with.
Of course, if you were to purchase a small business for sale in London, you wouldn’t have such substantial overheads. You may even be able to stay home-based. In this case, you wouldn’t pay office rent and your path to profitability would be more streamlined. Another alternative is to buy an existing franchise business, otherwise known as a ‘franchise resale’. You’d make a payment directly to the existing franchisee and take over their territory and customer base. In some cases, this will be less expensive than starting up a brand new operation. So don’t forget, when you’re searching through franchise opportunities in the UK, make sure you have a clear picture of exactly how much you’ll need to pay initially, and on an ongoing basis, before you make a commitment.
What about funding? You may be able to get financial aid from your franchisor. But you must be aware that this is only possible in rare scenarios. Most prospective franchisees get the capital they need through a bank loan. The process is easily understood. You’ll be required to go to a bank’s franchise department and talk to a reputable lender. At this meeting, you’ll be asked to present a business plan…
This is a document that will show the lender exactly how you plan to use the money they lend you. You’ll have to describe the specific franchise opportunity, provide a market analysis, show your proposed organisational structure, deliver detailed financial analysis and more. Guides for creating professional business plans are readily available. After your presentation has concluded, the lender will take several working days to evaluate your request. They’ll take into account what you’ve said and shown and then also look at your credit score and income level. If these are at acceptable levels and your presentation went well, you’ll be granted a loan. How much will you get? This will depend on your particular circumstances, but generally, you can expect to get funding that covers up to 70% of the initial investment requirements.
All franchisors train their franchisees. You’ll experience an intensive training programme that goes over subjects such as marketing, customer service and daily business procedures. These courses can take anywhere between two days and one month. The length of your personal training will depend on your skills, level of experience and the requirements of your parent company. On top of this instructional period, you’ll be given in-depth manuals that contain a detailed breakdown of the business model you’ll be expected to follow. You can be sure that once your training is over, you’ll be ready to take on all the business opportunities in London!
Following the launch of your franchise, you’ll be able to reach out to your parent company’s head office team whenever you choose. In fact, your franchisor may even assign you a dedicated mentor who will guide and advise you for your first few months.
Found a business for sale in London that suits both the current skill set and future goals? The next step you need to take is easy – just reach out to the franchisor. Don’t worry, you won’t have to make a commitment yet. All you’ll need to do is send an enquiry and request more information about the franchise opportunity.
This is free, and you’ll be under no obligation to proceed any further. How do you do it? Find the franchisor’s page on Franchise Fame and use their enquiry form! It’s really that simple. If you like what you’ve read in the prospectus you’re sent, you can move onto the next phase. This will involve the organisation of a Discovery Day. Simply stated, this is a chance for you and representatives of your potential parent company to meet. These kinds of meetings usually take place at a given brand’s headquarters and they’re normally attended by other prospective franchisees, too. You’ll be able to ask any questions you want and you’ll then also likely be provided with the contact details of active franchisees. It’s vital that you take this opportunity to speak with them, as they can tell you what it’s really like to work with the company in question. If everything checks out, you can consider signing an agreement.
However, you should know that in order to take certain franchise opportunities in London, you may need official qualifications or previous experience. The Discovery Day will be a chance for the brand to evaluate you as well. The team will question your professional background and determine whether you’d be a suitable franchisee.
Unsure of which franchise opportunity is right for you? Contact us today.
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