Learn Which Franchises Are the Most Profitable

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Your Path to Financial Independence Revealed

What are the most profitable franchises to own? Our list is displayed right here on this page for your convenience. Considering starting your own business instead? In addition to finding out what the most profitable franchises in the UK are, you’ll also discover the advantages of investing in a franchise over forming your own operation.

Franchise Vs. Startup – What You Need to Know

Look below and discover our comprehensive list that covers all buying a franchise vs starting a business pros and cons.

Success Rates

Franchises fail far less frequently than independent startups. It’s a fact. Recent studies suggest that approximately 90% of franchises succeed, while only 15% of businesses started from the ground up, do the same. The reasons for this are simple…

A franchisee receives training and ongoing support and follows a proven business model. An independent business owner has no outside assistance and must create their own model usually through trial and error. What’s more, a franchisee is able to capitalise on the pre-established reputation of their parent company. While an independent owner must build their own reputation brick by brick. A process that can take many years. During this time, the owner will struggle to attract potential customers to their outlets, and therefore will find it very difficult to create reliable revenue streams – most startups fail while attempting this.

Reputation & Recognition

It could be argued that there’s nothing more important in the business world than brand recognition. Imagine for a moment that you’re a consumer looking for a particular product or service. Needless to say, you want to get the best quality possible while paying a fair fee. As a result of this, it’s very likely that you’ll automatically go to a brand that you recognise, which is also well-known for consistently achieving the highest standards. You may not even notice the new, independent startups that offer the very same products or services.

This is just one of the many advantages that franchises have over startups – a franchisee inherits the hard-earned reputation of the franchisor that they’ve partnered with immediately upon signing a franchise agreement. Consequently, potential customers will see the branding above the franchisee’s door, and know that they can deliver what they require.

Financial Assistance

A point often raised in the franchise vs. startup debate is the fact that prospective franchisees are far more likely to get funding from moneylenders. Almost all franchises and startups need some level of financing to get off the ground. Capital is required to cover property rent, staff wages, equipment, vehicles, supplies, insurance, and so on. But aspiring entrepreneurs who want to start up their own operations often struggle to get the financial support they need. This is because lenders are aware of how frequently independent startups fail, and accordingly, are reluctant to commit any of their own money. On the other hand, franchises are known to regularly succeed and are supported by well-known, successful franchisors. Due to this, lenders feel more comfortable providing assistance.

On average, prospective franchisees are able to secure up funding that covers up to 70% of their initial investment into a franchise. You should also know that some franchisors are actually able to offer direct financing to franchisees. This is highly beneficial as no one knows what’s required better than the franchisor – they’ve been there and done it. They’re also likely to offer more favorable lending terms.

Training & Support

Business owners have many responsibilities. They must hire and train staff, market their operation, facilitate the completion of services, and that’s not all. But if an owner has limited experience with these tasks, what chance of success do they have? This is another advantage that franchises have over startups. Before they open their businesses, franchisees are trained in all aspects of the operation by their franchisors and are then given ongoing support with marketing, and more. Some are even provided with specially designed, bespoke franchise software systems that streamline daily business processes and improve productivity. An independent business owner, meanwhile, must learn on the job. More often than not, this leads to failure.

When you’re looking into which franchises are the most profitable, you’ll discover that the franchisors involved all offer extensive, ongoing training and support to their franchisees. There’s a direct correlation between this and franchisee success.

Suppliers, Equipment, & Resources

If your operation is to go smoothly, you must have connections with reputable, reliable suppliers who can provide you with the equipment and resources you need. Franchisors are able to introduce their franchisees to nominated suppliers who’ve proven they can be trusted, and who’ll only charge fair fees. Independent business owners need to carefully assess potential suppliers and then approach them in the hopes that they’ll be able to help them. Plus, as these owners have no previous relationship with the suppliers, they’ll almost certainly be charged full price.

Return on Investment

When it comes to franchise vs. startup, the potential return on your investment should play a key part in your decision process. Generally, franchises provide a far faster return on your investment. This is simply because it takes less time to build a customer base and establish revenue streams. Many franchisors will actually provide realistic estimates of how quickly a new franchisee will start making a profit – on average, between 18 and 22 months after launch. While independent startups usually don’t become profitable until at least their third year.

Get Moving

Once you’ve read the above detailed guide you’ll be familiar with all the various buying a franchise vs starting a business pros and cons. What’s next? Finding a franchise opportunity that’s right for you. If you’re unsure how to get started, connect with the Franchise Fame team and request specialist advice and guidance.

Want to know what our top 10 franchises are? See them here.

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Low investment
eye-level-franchise-logo

Eye Level is a leader in the supplementary education industry.

Min. Investment

£8,000.00

Low investment
Kidslingo-Logo

Kidslingo specialises in language education. The company offers fun and interactive classes suitable for young children up to the age of 11.

Min. Investment

£3,000.00

Low investment
Sweets and Treats Vending logo

Sweets and Treats Vending installs vending machines in offices, factories, schools, and other kinds of commercial premises.

Min. Investment

£9,950.00

Featured
Walfinch franchise logo
Care & Elderly Services

Walfinch Franchise

Customers come to Walfinch when an elderly relative requires hourly-care or live-in services.

Min. Investment

£35,000.00

mail-boxes-etc-logo
Courier Franchises

Mail Boxes Etc. Franchise

Mail Boxes Etc. offers a wide range of services to both businesses and individual customers.

Min. Investment

£25,000.00

junk hunters logo

Since 2017, Junk Hunters, rubbish removal and collection company, has delivered specialist services throughout London and Birmingham. Highly profitable and successful.

Min. Investment

£20,000.00

Low investment
fantastic-services-logo
Cleaning Franchises

Fantastic Services Franchise

Founded in 2009, Fantastic Services has grown from humble beginnings to become a highly regarded global enterprise with over 500 franchisees.

Min. Investment

£5,000.00

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