Franchise recommendations

[Affinity2030]

Hey guys!

New to this forum. I'm a 27 yo entrepreneur. Currently have a limited company in sports industry but I am also looking into potential franchise opportunities in Brighton/London.

Where should I start to find information about picking a franchise and what would you say are key industries to get into post pandemic?

Got 10-20k to play with.

Thanks in advance.

 

[Mark T Jones]

You won't get much in the way of b & m franchises for that money

What type of thing are you looking for?
What are your mid-term plans?

There are some franchise shows coming up real ones I believe - they will be worth a wander

 

[WaveJumper]

Put this in your diary
https://thenec.co.uk/whats-on/national-franchise-exhibition/

 

[Affinity2030]

Thanks for the replies guys.

Looking to supplement my come and make around 40-50k profit.

Ideally would be online/managing a business. Some ideas I had were Gardening/ice cream shops/cafe/sport.

Let me know your thoughts....

 

[Mark T Jones]

Thanks for the replies guys.

Looking to supplement my come and make around 40-50k profit.

Ideally would be online/managing a business. Some ideas I had were Gardening/ice cream shops/cafe/sport.

Let me know your thoughts....

Far too broad for a meaningful response

As I said, your budget is too small for a proper b & m franchise

I'm never really sure what a gardening franchise offers

You need to be very clear on what you expect you put in and get out of a franchise- there is no easy money or guaranteed success

Most franchises exhibiting will he legit. Most will have capacity to generate an income- possibly quite a decent one.

There are 2 huge potential pitfalls you need to be aware of:

1 the way they are sold
2. The way they are bought

 

[mattk]

I'm never really sure what a gardening franchise offers

You give me ten grand and I show you how to use a lawn mower.

Also available for an additional ten grand (each) I can show you how to wash a window, clean a car, scrub an oven or any other simply household task masquerading as a franchise "business".

 

[KM-Tiger]

picking a franchise

I would be very wary of that approach, your risk is that you simply empty your wallet into the franchisor's.

Choose a business that you have good reason to want to be in, and then see if the franchise route has anything to offer.

IMHO the key test of a franchise is does it give you a competitive advantage that you cannot obtain any other way?

I speak having been a successful franchisee.

 

[WaveJumper]

You give me ten grand and I show you how to use a lawn mower.

Also available for an additional ten grand (each) I can show you how to wash a window, clean a car, scrub an oven or any other simply household task masquerading as a franchise "business".

I have outsourced most of this to the wife I am now going to look on this as her franchise opportunity ..... I just need to pluck up the courage and let her know

 

[Chris Ashdown]

If you grass the garden, (gardening service) buy a cow and insert into garden ( free milk for Ice Cream and milk shakes) and sell the produce (Shop)

Sorry can't help with the sport

 

[Mark T Jones]

There is a universal and reliable rule with franchises

If its any good, the franchisor will interview you to ensure you are the right person to represent the brand.

If they have to come and sell it yo you at every opportunity it's probably a duffer

 

[AllUpHere]

There is a universal and reliable rule with franchises

If its any good, the franchisor will interview you to ensure you are the right person to represent the brand.

If they have to come and sell it yo you at every opportunity it's probably a duffer

I said almost exactly that about 2 and a half years ago.
https://www.ukbusinessforums.co.uk/...ranchise-is-worth-buying.396108/#post-2914652

 

[JEREMY HAWKE]

New to this forum. I'm a 27 yo entrepreneur. Currently have a limited company in sports industry but I am also looking into potential franchise opportunities in Brighton/London.

Your not an entrepreneur if your looking to buy a franchise. A franchise is a glorified job
Hope this helps

 

[AllUpHere]

I wonder if it's worth setting up a service for people looking to buy a franchise. We must have the skills on this forum to give them everything they need at a fraction of the cost of buying a disadvantage (sorry. I mean franchise).

 

[roydmoorian]

If you grass the garden, (gardening service) buy a cow and insert into garden ( free milk for Ice Cream and milk shakes) and sell the produce (Shop)

Sorry can't help with the sport

Buying a cow is a v. expensive and time consuming way of creating “free” milk

 

[Chris Ashdown]

Buy a goat then

 

[roydmoorian]

Hey guys!

New to this forum. I'm a 27 yo entrepreneur. Currently have a limited company in sports industry but I am also looking into potential franchise opportunities in Brighton/London.

Where should I start to find information about picking a franchise and what would you say are key industries to get into post pandemic?

Got 10-20k to play with.

Thanks in advance.

If you have a successful existing business why not consider becoming a franchisor and create income from your own franchisees in an industry which you already know inside out ?

I doubt there are many franchises out there which will create what you desire (£50k income from £20k investment) without you having to take your eye off the ball on your existing interests.

 

[Washington]

Far too broad for a meaningful response

As I said, your budget is too small for a proper b & m franchise

I'm never really sure what a gardening franchise offers

You need to be very clear on what you expect you put in and get out of a franchise- there is no easy money or guaranteed success

Most franchises exhibiting will he legit. Most will have capacity to generate an income- possibly quite a decent one.

There are 2 huge potential pitfalls you need to be aware of:

1 the way they are sold
2. The way they are bought

Can you please expand on points 1 and 2 ?

 

[Mark T Jones]

Can you please expand on points 1 and 2 ?

1 good questions get good replies.

2 bricks and mortar franchises cost more than the OP's budget

I hope that helps

 

[MOIC]

For any decent franchise, 20k will just cover the legal costs.

If you’re an entrepreneur, then create a new business.

 

[AW-UK]

You should probably look into a sector that you are most comfortable with, whilst it is relatively easy to find out what is required to say open a franchised restaurant, if your background is in sports, do any of the large chains offer a franchise opportunity? You could look at drop shipping from an online store perhaps?

 

[Greg PW Shearman]

Hi - some really good replies and info on this pretty old post but very relevant as franchises are an increasing option for many.

F&B bricks and mortar are usually out of the equation for many and most decent brands want you to have multiple sites.

Grass cutting and oven cleaning and similar you are right if you do some decent local marketing why give someone else a cut ?

There are some low cost franchises under £20k but remember if that's the cost you will need working capital as well - check what the monthly fees are - what you have to buy from the franchisor and read all the contract !

If anyone wants to ask anything about franchising I am happy to answer away or send you in the right direction.


and to contra the negativity - franchising for the right people who need support and help setting up a business is a great thing !

 

[BubbaWY]

If its any good, the franchisor will interview you to ensure you are the right person to represent the brand.

Appreciate its an old thread which has just reared its head but this is spot on. I had a Snap On Tools franchise and it was quite an onerous application.

FIrstly I had an introduction meeting at home where the area manager was ,I assume, sussing me out, my ambitions, drive, etc.

I then had to spend three separate days with established franchisees to get an idea of what an average day was like.

Then it was off for a more formal interview with the Branch Manager where I also had two do a number of a tests.

Only then did they feel I was suitable to represent the brand but as said elsewhere in the thread, it was like a glorified job. Id happily do it again though.

 

[Greg PW Shearman]

Appreciate its an old thread which has just reared its head but this is spot on. I had a Snap On Tools franchise and it was quite an onerous application.

FIrstly I had an introduction meeting at home where the area manager was ,I assume, sussing me out, my ambitions, drive, etc.

I then had to spend three separate days with established franchisees to get an idea of what an average day was like.

Then it was off for a more formal interview with the Branch Manager where I also had two do a number of a tests.

Only then did they feel I was suitable to represent the brand but as said elsewhere in the thread, it was like a glorified job. Id happily do it again though.

That shows that franchise in a great light.
We could have sold many more area franchises but we want the right fit for our business model.

The reason people buy a franchise is often its a proven business model and they have made the initial mistakes.

The facts are so many businesses fail in the first 18 months but of them franchises are a very low percentage.

 

[Porky]

I fully accept the argument that you are following a proven business model and as a result I guess its probably a good way to enter a sector and make less initial mistakes especially if new to it.

However, I do wonder if in the majority of cases the only reason they offer the franchise model is because the business is either labour intensive or difficult to scale because you cant trust a local manager unless they have skin in the game.

Example 1: A friend has a Pizza Shop doing really well, he’s earning good money, £50k a year. He thinks I know I will open a second Pizza Shop and replicate what I’m doing in shop 1, employ a manager on £35k and earn £15k for himself. Only issue is he cant be in two places at once. He starts the new shop to build it up and installs a “friend” to run the first shop. He later discovers that revenues have fallen, worse much later he finds that the manager he trusted was a) giving pizza’s to friends at discount or freebies and b) not putting some of the taking through, skimming the till. Despite being well paid the “friend” took that bit more from him.

Not saying the example is reality in every case, just saying it was in this case. Probably why there are numerous pizza shop franchises. Getting the owner to put a chunk of change up kind of helps reduce your expansion risks and being ripped off.

Example 2: My friend Keith took on a McDonalds franchise, brilliant high revenue proven model. However, McDonalds know the margins and maximise earnings from the franchise, he earns very little from one unit as a result, to make any decent money Keith needs to own six of them, that’s his plan. You order stock from them automatically at their prices and can only sell at the set prices so you are trapped and earnings per franchise are fairly small.

Alternatively, if I opened up “Porky Burgers” I would have total control over my prices and margins and could in principle significantly have more net earning per unit (something like 7 times as much) on like for like sales revenues. Or take far less but earn more. What I gain with the McDonalds franchise is the name, the marketing behind them and the know how to make the branch a success.

Interesting one, always a price to pay somewhere. Up to you which one is worth you that value add, that commercial advantage you can’t get on your own, if you go the franchise route.

Good luck

 

[RodneyUK]

Could be worth looking at something like Really Awesome Coffee. Similar to your cafe / shop type interests, but its a van based franchise. There are other examples out there too such as Coffee Blue and Triple Two Coffee.
The van based coffee one usually uses a converted van, but the reason I suggest is the entry investment is often reasonable compared to the storefront counterpart. Coffee van franchises typically around £30k. Banks like Barclays and Natwest are members of the British Franchise Association so would probably be able to help you given you've got business ownership experience already.

Like others have said, its a good idea to go to the shows. You seem to be from the Brighton area, so the April franchise show isn't too far to travel?
Maybe worth having a look there too, Really Awesome Coffee are attending, might be a chance to ask some questions.

 

[Volopa]

It being an old topic, but if there are people interested in franchises, the franchise show in the London Excel is happening on the 14-15 April. Tickets are free so could be a good place to do some fact finding.
YOu can also pick up some good advice from the QFA ( the Quality Franchise Association) who will be exhibiting there. I'll be heading to the show myself.

 

[EricGuys]

( the Quality Franchise Association)

Must be a new one, not heard of them before. Strange though, as their "members" directory is full of dissolved, dormant and businesses that simply put, aren't even franchising...

I will be attending so will be on the eye out. Be interested to ask a few of their members exactly what checks are involved with membership, I certainly wouldn't put my money into half their members.

Looks a lot like the approved franchise association which seems to have disappeared, is the QFA an AFA replacement

 

[Volopa]

Interesting, maybe a question to ask if you see them.
Think you might know more about them than I do?
Maybe I'll see you there EricGuys?

 

[EricGuys]

Are you exhibiting or are you a visitor ?
I live in London so can drop by any day. I'm looking to get into the food and beverage sector and there are a few brands that I'll go for anyway. I've run a few businesses in the past , looking for a challenge in a new sector.

The QFA appears to have a strong board so will find out a bit more about their ambitions. Just seems strange that their members directory is full of strange businesses. Auto cuts, need a hair makeover, oomph CRM, none of which appear to even be franchising.

 

[Volopa]

I'll be visiting. Live in London also?. However due to the show dates I'll probably go on the Friday.
QFA are affiliated to Franchise UK. I've spoken to Joel who is the CEO there and I know they are looking to expand internationally. He should be there so you should be able to get your questions answered.

Are you exhibiting or are you a visitor ?
I live in London so can drop by any day. I'm looking to get into the food and beverage sector and there are a few brands that I'll go for anyway. I've run a few businesses in the past , looking for a challenge in a new sector.

The QFA appears to have a strong board so will find out a bit more about their ambitions. Just seems strange that their members directory is full of strange businesses. Auto cuts, need a hair makeover, oomph CRM, none of which appear to even be franchising.

 

[EricGuys]

I'll be visiting. Live in London also?. However due to the show dates I'll probably go on the Friday.
QFA are affiliated to Franchise UK. I've spoken to Joel who is the CEO there and I know they are looking to expand internationally. He should be there so you should be able to get your questions answered.

Nice one cheers, all the while we're talking, I'm beginning to wonder whether the OP has taken interest in the April show, for the sake of digging up an old thread.

 

[Volopa]

Quite possibly. If you DM your mobile, I'll we'll go for a coffee