Richard Pakey outlines why the UK currently offers great value and potential for budding franchisees, while illustrating how best to secure the business of your dreams.
The United Kingdom is witnessing a rapid growth within franchising, both in the number of franchisors and franchisees. And yet, the country is still lagging far behind other developed nations in terms of franchise businesses per capita. In total, the UK has approximately one thousand franchised systems in circulation. This represents around one-fifth of those in other big economies such as the United States and Australia.
Yet this is actually good news for those wishing to enter the industry in 2022, as it offers great potential to occupy the available space by starting up a fledgling franchise business. It also means this is the perfect time to take the plunge and become part of a successful business sector.
But don’t jump straight in as it’s vital to carry out detailed research beforehand. First, you must decide what you have a genuine interest in. Is it the food and beverage sector? Maybe it’s a white or blue collar franchise? Whatever takes your fancy, start your search by identifying a dozen or so franchises that fit your list of potential businesses? Then submit your requests for further information.
You need to take your time and check out each idea in depth. Never rush this particularly important task. You may soon find that a particular franchise you chose to research is not all it’s cracked up to be. Therefore, you can bin that idea. And never lose sight of the fact that franchisors will always want to engage with you.
It’s certainly not a one-way street, with franchisors willing to spend vast amounts of money on advertising and marketing campaigns to grab your attention. These men and women are keen to showcase their brand at every possible moment. Right from the start it is important to develop a good relationship with the franchisor. Both sides are seeking a perfect fit and it’s vital that regular dialogue takes place between the two parties.
You may discover that a franchisor will understand your needs and wants, and take a more flexible approach than normal in attracting you to their business. The franchisor will focus on explaining their training and on-going support systems, in a bid to capture your attention.
From your side, you will need to impress on the franchisor that you have a genuine interest in their brand. And they will want to discover if you possess a strong appetite to represent their brand in a positive manner. If you fail to show a serious ambition to become one of their franchisees, this is not a good look, neither is it a great way to start any relationship.
Funding your business can be tricky, depending on the amount of cash you have at your disposal. But don’t despair as there are many funding options available. With interest rates remaining at historic lows – despite the recent Bank of England rise – locating the best route for funding your venture should not be a major issue.
In addition to the high street banks, there are Government initiatives such as ‘start-up loans’ or even grants, to guide you along the path to becoming a business owner. There has never been a better time to join the world of franchising. Further information can be found online, with franchisors usually happy to point you in the right direction, or even make that first contact with a bank on your behalf.
You must make the right impression with franchise owners who may be in consultation with many other budding business partners at any one time Show them why you are the best choice of all. Meet them face-to-face as soon as possible – providing you have a genuine interest – while demonstrating your ambitions and skills.
Don’t hold back in your pitch to become a franchisee, especially if you really feel an affinity with a particular brand. You can even take expert advice from a franchise consultant, many of whom are paid by franchisors – so the cost to you could be zero or minimal at most. So stand up and be counted in 2022, and make it your big year.
