Franchising is one of the most popular business models in the UK, because it combines the freedom of working for yourself and owning your own business with the structure and support of a regional, national or international organisation. With greater numbers of people leaving their jobs than ever before due to dissatisfaction with labour conditions – including an erosion of work-life balance and pressure to do overtime, among other factors – we expect to see a sharp increase in the volume of new franchises opening over the next few years.
If you are interested in launching a franchise business and taking control of your future, World Options can help. Here, we’ve broken down the advantages and disadvantages of some of the most common types of franchises so you can decide which type is right for you, and feel inspired to take the first steps towards owning your own business in 2022.
Fast food franchises
It is often the case that the most popular franchises for entrepreneurs are those that are most easily recognised by consumers. Fast food franchises, for example, are extremely popular because they are known and trusted by consumers, which leads to a degree of built-in demand. However, for first-time business owners, these franchises are not always viable for a number of reasons.
To start, food franchises are expensive. The upfront cost to purchase a McDonald’s franchise can exceed £1 million, which includes a physical store and the training and equipment you need to start. Regular outgoings are higher for bricks-and-mortar franchises and because profit margins are often limited, it can take a long time for your franchise to break even, let alone to start making a profit. For this reason, this type of franchise is not recommended for first-time business owners unless they have significant experience in the quick-service restaurant industry.
Parcel courier franchises
Parcel courier franchises are a fast-growing area, particularly as demand has grown exponentially over the last few years. The COVID-19 pandemic certainly impacted this, with the volume of online sales increasing during lockdowns. Even after things began to open up, online sales did not return to pre-pandemic levels, indicating a permanent shift towards e-commerce. Another factor has been a shortage of workers throughout the shipping and logistics industry, which is an ongoing challenge related to a variety of contextual factors.
The upfront investment cost for a courier franchise is often lower than those for bricks-and-mortar franchises, and for the most part parcel franchises can be operated from home. They are also cost-effective to operate, as outgoings are mostly limited to the cost of running and maintaining a delivery vehicle. Franchises such as Amazon Logistics are a great way to start in this type of industry.
Online franchises
If you are seeking to limit your upfront investment and make the operation of your business as convenient as possible, an online franchise can combine these advantages. Internet-based business can range from e-commerce to teaching or recruitment, and often require no specific industry experience or qualifications to get started. Instead, you need only bring your passion for developing and growing your business.
World Options is a shipping services provider with a successful franchise programme that is low cost, and enables our franchisees to work from home. It requires no prior industry experience as we provide full training and support, and we know the value this can have for first-time investors. If you have never owned a business before, it is important to do a lot of research into the type of industry you want to enter, and to check with your franchisor to see what types of training and support they can provide.
There are so many franchise programmes available that you should always be able to find a business model that suits you, no matter your specific needs from a franchise business. Through research, you may find that your skills are better applied to a different type of franchise than you expected, or that the best opportunity for you is one you had never heard of before.
Guest post by Sam Whittaker, Marketing Manager at World Options