This article was written just ahead of the Autumn Budget, and we hoped that by the time it was published the Government would have waved its magic wand and removed the country’s commercial woes. On the slim chance that that does not happen and people continue to find themselves being made redundant, we thought a guide on how to choose the right franchise might be timely.
Who is the BFA?
The BFA is the UK’s self-regulatory body for franchising and has been since 1977. Via our ‘Code of Ethics for Franchising’, which is available for download from our website, we lay down the standards for franchising in this country. We are regarded as the home of franchising in the UK, for educational and standards purposes.
Franchising after redundancy
In September 2026, through our ‘Question of the Month’ survey, we asked our nearly 2,000 franchisee members if they had come into franchising following redundancy. 19% of respondents said yes, they had.
Redundancy toolkits
Recently, we launched our ‘BFA Redundancy Toolkits’: downloadable information from our website for both those facing redundancy and their employers. We will also be proactively sending the toolkits to companies announcing redundancies.
Masterclass in research
As part of the survey, we asked our members what advice they would give someone who was facing redundancy and considering buying a franchise. There were some great responses but John Houghton, who now owns domiciliary home care franchise Right at Home Derby, Ashby, Burton and Uttoxeter, wrote a virtual masterclass on the subject.
Not buying a ‘job’
For background, John says he knew about franchising before buying his franchise, but he had not ‘explored all of the different brands available’. He says he is ‘very happy’ with his decision to buy a franchise and would absolutely recommend franchising to people facing redundancy, but with the following caveat: “If it is the right franchise for the right person, then absolutely. However, without the right guidance, people can end up buying the wrong franchise for them, or even just buying themselves a job.” We could not have put it better ourselves, John.
So, how did John end up as a franchisee and how did he find the right franchise for him?
Considering options
John explains: “I had a long and successful career with Enterprise Rent-A-Car before being made redundant, but I knew that I would not get the satisfaction or challenge I wanted by going back into regular employment, so I explored three things: starting my own business, professional investing and franchising.”
Finding the passion
John admits he explored just about every business sector he could think of and narrowed them down to the ones he felt he could be passionate about and, crucially, the ones he could scale to become more than just a one-person business.
Go it alone?
John reflects: “Firstly I looked at whether I could set up the business on my own and then I looked at all the franchise operators within that sector. Then I completed my initial high-level screening and met with the franchisors of the three best franchise operators within each of those sectors.”
BFA view
John’s attention to detail, identifying a sector he could be passionate about, plus one he could scale up, is a great testament to him and exactly the way we at the BFA would recommend potential franchisees tackle their search. Research is your friend and there is no substitute for personal effort in this situation.
Final choice
After such intense due diligence, John was ready to make his choice. He says: “I chose the home care sector as this would provide the job satisfaction I required within a regulated sector that had a high degree of longevity. I then chose Right at Home due to sharing similar beliefs, philosophy and values as the franchisor.”
Franchisee advice
John’s final advice to someone thinking about buying a franchise is: “Explore all options within and slightly above your investment range (including finance). Do not exclude any market segment initially, narrow it down to two or three segments and then complete due diligence on every brand within those segments.”
With a less than 6% failure rate for over 25 years, according to the British Franchise Survey sponsored by NIC Local, we know that franchising offers a safer route into self-employment but combine that data with first-class due diligence and research like John’s and it is no wonder approximately 14 years later he is so happy with his choice.
Key takeaways
- A BFA ‘Question of the Month’ survey of nearly 2,000 franchisee members in September 2026 found that 19% had come into franchising following redundancy.
- John Houghton’s approach shows what thorough due diligence looks like: he explored every sector he could think of, narrowed them to ones he could be passionate about and scale, looked at whether he could go it alone, and met the franchisors of the three best operators in each sector before committing.
- The BFA’s Redundancy Toolkits provide downloadable information for both those facing redundancy and their employers, and the BFA will proactively send them to companies announcing redundancies.
- Franchising can be a strong option after redundancy, but as John warns, without the right guidance people can end up buying the wrong franchise for them, or just buying themselves a job.
- With a failure rate of less than 6% for over 25 years, according to the British Franchise Survey sponsored by NIC Local, franchising offers a safer route into self-employment, especially when combined with first-class due diligence.
