Following the recent budget and an increase in NI contributions, redundancy could be around the corner for many. In this article, Ryan White, MD of pet care franchise We Love Pets, who recently made the finals of the BFA’s Franchisor of the Year Awards, gives advice about facing redundancy and considering investing in a franchise as a form of future employment.
Info: The reality of redundancy
“Whilst the word ‘redundancy’ can instil fear into even the bravest of hearts, it can also be a chance for reinvention and to start again, through the purchase of a franchise.
Franchising is full of extremely successful franchisees, who would probably never have thought of owning their own business. had they not been forced to confront the situation through losing their job. Fear not. The franchising sector is very familiar with helping people get back on their feet following redundancy; with guidance from the BFA (British Franchise Association), and plenty of due diligence, you are in safe and potentially profitable hands.
Why franchising?
A very good question; why franchising? Why not start up your own business from scratch? For one thing, franchising is hugely successful.
According to the October 2024 British Franchise Journal[1], franchising contributes £19.1 billion to the UK economy; this is more than the film and high-end TV industry [2](£4.23 billion) and the music industry (£7.6 billion) [3]put together (but less than the UK sports industry at £39 billion).
Franchising rarely fails
The survey also revealed that 99.5% of all franchisees succeed. Read that again. The ‘commercial failure rate’ of franchising is just 0.5%; compare this to the figures that 50% of all small businesses will fail [4]within their first three years of trading and there’s 99.5 compelling reasons to choose franchising right there.
A proven business model
Franchising is all about repeating a proven business model, perfect for someone who is leaving a career, who wants to work hard, but has no experience of running their own business. Fear not, your franchisor will teach you everything you need to know, allowing you to put your shoulder to the wheel from day one. Depending on the size of the franchise you’ll also have their support team beside you every step of the way and a bunch of other franchisees to chat to and get advice from, giving you the very best chance of having a successful business.
Regain control and trust
When we speak to people who come to us following redundancy, they all say the same thing; they felt their trust was broken. Conversely, franchising puts you completely in the driving seat, so you can regain absolute control of your working life and financial stability.
The worst thing about being an employee is not being able to see what is going on behind ‘closed doors’. When you run your own business, you see everything; if business is down, you budget accordingly and take remedial action; there won’t be any surprises; you’ll be in complete control.
Invest in yourself
When that redundancy payment hits, it may be tempting to put it in savings and try to look for another job. But why not use that money to invest in yourself for a change? You have been through redundancy once; do you really want to risk it again? How about investing in YOU this time?
The importance of research
Sadly, not all franchises are created equal (just like all former employers aren’t created equal either), so if you take nothing else away from this article, please let it be that you must do exceptional research into the franchise you are buying. Here’s how:
The BFA (British Franchise Association)
The first place to start is by looking at the BFA (British Franchise Association) website. They have all 350+ member’s franchise opportunities listed on there. Each one has pledged to abide by their ethical code of conduct, [5]which is worth a read before you start. They also offer a free online Prospect Franchisee Certificate[6], to give you a broad overview of what you should expect as a franchisee and from your franchisor.
Find your passion
I think the important thing is to find a franchise you can be passionate about. Obviously for us it’s people who love pets, but it could be something completely different for you. If you’re not sure, visit the BFA website; you can search by sector eg: Accountancy, Automotive, Beauty, Maintenance, Business Consultancy, Child Care and Children’s Activities, Cleaning Services, Domiciliary Care etc
Find your entry level
You can also search by what kind of franchise you want to buy, either a ‘start up’ franchise, which may give you great ‘early adopter’ purchase rates and your pick of locations but won’t have the long history of more mature brands.
Or you may prefer an ‘investment franchise’ where you are very ‘hands off’ or a ‘management franchise’ where you will run teams to provide the service, rather than doing it yourself, or finally, a ‘resale franchise’ that you’ll be buying as an ongoing concern (which will cost more but you’ll be able to see the books for the last few years and hit the ground running with an income.)
Find your market
You can also choose which market you sell to, B2B (Business to Business). B2C (Business to consumer) or both.
Find your experience level
Finally, you can choose how experienced you would like your franchisor to be, starting at the bottom with ‘emerging’, moving up to ‘Expanding’ and finally, the grandfather of franchises ‘Established.’
Rebuilding, rejuvenating, realigning
Although it is easier said than done; if redundancy has struck, try not to see it as a negative, but, as our headline suggests, a positive thing, a springboard into a fantastic new career as a self-employed business owner. There is a reason that 48,000 in the UK people have brought franchises and that 99.5% of them are successful; franchising works. Good luck!
