It’s a significant contributor to the economy and has a far lower failure rate than independent start-ups. While around 50% of independent businesses survive, a remarkable 99.5% of franchises do. That’s a huge variance, and it explains why franchising attracts so many aspiring entrepreneurs.
At its best, franchising combines the drive and energy of the entrepreneur with the experience and expertise of the franchisor. It gives you the chance to follow a proven model, be your own boss, and join a supportive network of like-minded owners. But buying a franchise does not guarantee success. You need to make sure you are buying the right franchise for you.
Running your own franchise is not the same as buying yourself a job. It requires a change in perspective. You’ll need drive, energy, self-motivation, self-discipline, and passion and the ability to think like a business owner, not just a technician.
Michael E. Gerber, author of The E-Myth Revisited, puts it plainly: “Just because you know how to do the technical work of a business does not mean you know how to run a business that does that work.”
In other words, a great accountant won’t necessarily be able to run a great accountancy business, nor will a great baker necessarily be able to run a great bakery. Make sure you understand exactly what your role will be and how you will be spending your time.
Franchising offers many advantages: brand recognition, a proven model, and shared expertise… but it also comes with constraints. You’ll need to follow brand guidelines, adhere to systems, and respect the franchisor’s rules. Those systems exist for a reason; they’ve been tested over time and refined to give you the best chance of success, but if you are too entrepreneurial these make feel too restrictive.
There are also risks. The brand’s reputation affects you—bad PR from one or two franchisees can damage the entire network. That’s why it’s important to choose a franchisor that is selective about who they recruit and proactive in managing the system.
Questions to ask yourself
Before you even speak to a franchisor, reflect honestly:
Can I see myself doing this day to day for the next five/ten years?
Is this an industry I can be passionate about?
Do I have the right skills and experience, or do I need to upskill before I start?
Do the franchisor’s values align with mine?
Would I prefer a brand-new franchise territory or a resale with existing teams and operations?
Do I want a new franchise, or a long established franchise?
Another crucial consideration is the level of competition in your chosen sector. Some franchise models operate in saturated markets. These can be lucrative but demand clear differentiation and strong local marketing.
Others, like Rise, are positioned in spaces with little or no direct competition. That can be an advantage, giving you the opportunity to pioneer a concept in your territory. But it also requires careful evaluation: how ready is the market for this new model, and how well does the franchisor support franchisees in educating customers?
The right answer depends on your appetite for competition versus your comfort with innovation.
Questions to ask the franchisor
What does a typical week look like for a franchisee?
What is the franchise fee and ongoing management service fee?
On average, how long does it take to reach breakeven?
What training and ongoing support do you provide?
How do you support franchisees that are struggling?
How do you help franchisees stay compliant in regulated industries?
How often do franchisees meet to share best practice?
How many failures have there been in the network (and why)?
What support do you offer when it comes to resale?
And be honest about where you’ll need support, be it marketing, finance, or people management, and ask what support is available in those areas.
Meet multiple franchisors in your chosen sector to compare cultures and approaches. Understanding the competition is equally valuable, you’ll learn what makes different brands stand out.
Once you’ve selected a franchise speak to several of their franchises (successful and not so successful) to make sure what the franchisor is telling you is reflected by the network.
Buying a franchise could be the best business decision you ever make. Select based on the model, brand, culture, and leadership team, then commit to working hard and smart.
Remember: franchising is a long-term investment. As Bill Gates famously said: “Most people overestimate what they can do in one year and underestimate what they can do in ten.”
Don’t expect instant success. Build steadily, stay committed, and your franchise could become not just a business, but your legacy.
This feature comes from Rise, the UK’s trailblazer in inclusive sport—on a mission to help everyone, no matter their age or ability, enjoy the benefits of physical activity and personal growth. For more information, please visit our Opportunities page. (link)
