The British Franchise Association (BFA) has revealed the two biggest misconceptions about franchising in the UK, following a poll of its members that included franchisors, franchisees, advisors and suppliers.
The poll asked members what they believed was the biggest misconception about franchising. The results showed that 43% cited ‘it is not a local business’ as the most common myth, while 41% pointed to ‘you need serious money to start’ as the second most prevalent misconception.
Pip Wilkins, CEO of the BFA, said: “The myth that franchise businesses are not real local businesses is one that has plagued the industry for decades; but it is the very fact that they are franchises, that makes them such successful, local businesses.”
Wilkins explained that a franchise operates like a branch of a national brand but is wholly owned by the franchisee, who can sell it at any time. It employs local people and delivers goods and services to local customers, while benefiting from the competitive advantage of an established brand.
The poll also revealed examples of franchisees being excluded from local business events on the grounds that they are not considered sufficiently local. Kate Ball, franchisor owner of Mini First Aid, said: “Franchisees can be excluded from local business events as they are not considered local, forgetting that the franchisee is a local person providing employment and delivering services to their local economy.”
On the financial barriers myth, the BFA noted that its more than 350 franchisor members offer a wide range of investment levels, with many franchise opportunities available for under £10,000. According to the 2024 British Franchise Survey, sponsored by NIC Local, franchise businesses have a less than 6% failure rate, compared to 50% of all start-up businesses which fail within the first three years.
Tracey Cockerton, head of franchise sales and development at Metro Rod, added: “Franchising is not just for those with deep pockets. It is one of the most accessible routes into business ownership, and the support structure means you are never starting from scratch.”
