Learn more about franchising before investing

Opening a franchise business is a first-rate way to start and run a successful business. Nowadays, business franchises opportunities are increasing globally, but especially in the UK. That said, not everyone is able to run a successful business, so there are a number of factors to consider before investing.


There are different types of business arrangements and the meaning of franchising differs with each of them.

Business format is one of the most common forms of franchising, occurring when the owner of the business (the franchisor) is ready to grant a license to another person or business (the franchisee) to use the business data. This is usually for a specific area.

After buying the business, the franchisee can sell the services or products of the franchisor but they need to follow franchisor’s trademark or trade name which will ultimately benefit the franchisor. The franchisee can expect to profit from the franchisor’s name whilst paying them a fee as well as a percentage of royalty on sales.

Some other types of franchises

Distributorship and dealership – Franchisees sell products, but not necessarily under the franchisor’s name. They may also have more freedom in running the business.

Agency – Franchisees sell goods or services on the behalf of the supplier.

Licence – A licence gives franchisees the right to make and sell products of the franchisor. In these cases, there are no restrictions on how the franchisee runs the business.

Common opportunities for UK franchises include pet food deliveries, printing, drain clearance, fast food, cleaning chemicals and automotive repairs. Consider the type of franchise that suits you best before embarking on your venture.