Most Profitable Franchises in the UK

Currently, the UK franchise market is worth billions of pounds. But it keeps expanding annually.

Because it’s a good idea to launch your firm with an established support network, particularly in a world where financial crises and novel coronaviruses can emerge and shut down certain sorts of business.

You may already be committed to starting your new business while riding the wave of established brand recognition and receiving the thorough training that a solid franchise opportunity will provide you.

However, you could still be unsure of the sector to invest in for your franchise. In this article, we will be delving deeper into the necessary things you need to remember as you choose the most profitable business and franchise for you, identify UK’s most profitable franchise-offering companies, and other promising industries that may also consider as you make your way throughout your franchise journey. 

How to Choose the Right Profitable Franchise for You

Starting and choosing the right profitable business can be pretty overwhelming and stressful. But, on the other hand, if you know the basics ahead, the entire process will be a breeze as you move forward.

1. Establish a Budget

How much money do you put down as a franchisee? Owning a franchise can cost as little as £1,000 or as much as £500,000, depending on the nature of the business, its size and location, and how profitable the franchise is. Therefore, budgeting for your fee, startup costs, and working capital is crucial. Rent, salaries (your own and others), merchandise, and utilities.

Some franchises will provide new franchisees with financial support; in that case, the franchise agreement will contain more information regarding the money. However, obtaining a loan from a third party is also available. Therefore, presenting a solid business plan is vital if you apply for a loan from a financial institution. Most banks and other lenders won’t grant a loan without one.

2. Find an Industry That is Suitable for You

Since 2015, the following four franchise sectors have continuously grown: food, coffee, home care, and fitness.

 

The food sector leads the UK franchise market for a good reason! Excellent cuisine is constantly in demand. However, healthy food franchises face growing competition as more individuals seek healthier eating habits and food options. Fast food chains have held the top spot, but in recent years, smoothie and juice shops have expanded by 12.5%. The next ten years are expected to continue the health and wellness trend, so choosing a franchise in the healthy food industry is one way to ensure financial success.

The anticipated yearly turnover for coffee in Britain is £8 billion, making the coffee franchise market a great one to get to know. There are about 2,300 Costa Coffee franchisees operating in the UK, according to the 2018 BFA NatWest Franchise Survey. Costa Coffee first opened with just 170 units. In a sector that produces the most popular beverage on earth! The startling 2.25 billion cups of coffee consumed daily may account for the industry’s projected £15 billion revenue during the next ten years. Franchisees can run a prosperous coffee business or sell coffee out of a cart. Success as a coffee franchisee can be attained in a variety of ways.

Britain is getting older due to increased life expectancy and a drop in birth rates. Eighty per cent of those over 65 in the UK reside in their own homes, making up 18 per cent of the population. Therefore, it makes logical that there is a greater need than ever for home care franchises. They offer highly appreciated cleaning, personal care, and transportation services. To work in the burgeoning care sector, no medical background is necessary. As a franchisee, you may receive financial benefits, but you may also have the chance to improve the lives of others. It has never been simpler to launch a lucrative and fulfilling career.

What a large market to tap into: an incredible 9 million people claim to be fitness club members. It is impossible to overestimate the advantages of just 30 minutes of exercise. In addition, exercise lowers the risk of obesity, cancer, and chronic heart disease. So why not take advantage of the rising demand for top-notch gyms? The UK fitness sector has positively received the availability of 24-hour gyms, a large selection of exercise classes, and even online fitness training sessions. These are just a few services you can provide to your neighborhood. Fitness franchises have several advantages, including a fixed franchise price, recurring monthly direct debit income, and substantial assistance. Furthermore, none of these things is necessary to run a successful fitness franchise.

Furthermore, there are various industries and sectors to choose from, and we have listed them for you by the end of this article.

3. Establish a Work Schedule

You’re unlikely to go for a franchise opportunity with a demanding schedule if you’re taking care of young children or an elderly family member. Fortunately, the franchise sector offers services to anyone seeking a better work-life balance. Working from home or even part-time will allow you to make money from your business. Home-based franchises and part-time franchise enterprises are available in franchise industry segments like gardening, pet care, and home services. It is feasible to run a successful franchise while leading a balanced lifestyle.

4. Make wise location selections.

In what location do you wish to launch your franchise? The best place is essential for success. You won’t have many clients if your company is not situated in an approachable and noticeable area. Do some study on your customers before choosing a specific location. They, who? What do they do there each day? What do they frequently purchase, and why? How far are they prepared to go to use your good or service? It’s crucial to understand where your competitors are and how their locations affect their foot traffic. Are they at the ideal location, or is there another one you might take to attract more of your target audience? Once you’ve given these things some thought and done the necessary research, you’ll be one step closer to realising your business objectives.

5. Make the Right Inquiries

Make sure you comprehend everything in the franchise agreement before you sign anything. Make it clear what you understand and anticipate from the partnership by finding out exactly what the franchisor expects from you. Your conversation should touch on the following subjects:

  • Territory: Are you getting a region that is all yours? Is there room for growth in the future?
  • Support: What types of training and assistance are available, and how can you access them?
  • Other franchisees: How long have the operations of other franchisees lasted, and what lessons have they learned? If you can meet with one or two franchise owners, do so.
  • Fee payments: Exactly what must you pay, and how frequently? Exists a set payment date exist?
  • Limits of liability: What precisely is your franchise’s responsibility? Where are the restrictions on franchise performance?

The Most Profitable and Expensive Franchises in the UK

The food and beverage sector is home to the largest and most successful franchises in the UK.  But, remarkably, most of them work in the fast-food sector of the industry, such as KFC, Starbucks, McDonald’s, and Sonic.

 

These kinds of brands are well-known all around the world. They provide solid returns and robust brand recognition. However, a drawback that turns away the majority of prospective franchisees is the buy-in.

McDonald’s charges an increasing £30,000 franchise fee. You should also buy the space where your restaurant will be. Although estimates for how much money you’ll need to complete this vary, £800 000 is a number that is frequently offered.

You shouldn’t rely heavily on bank loans to pay for this expense either. McDonald’s argues that you need current assets to enter its doors for its brand to remain strong.

Because of this, even though they know that food and beverage franchises have a reasonable possibility of succeeding, most would-be franchisees seek other industries to make the most out of their fortune.

Industries With the Highest Franchise Profits

Outside of the top tier of the most profitable companies offering franchises, which have high extra charges attached, there is a wide range of successful possibilities with lower starting price requirements:

1. Cleaning and Home Renovation Franchises

There are currently roughly 2.5 million families in the UK that either employ domestic cleaning services regularly or are considering doing so.

People appear to have less time for themselves than ever due to the growth of the gig economy in recent years and the fact that current occupations entail ever-increasing time commitments.

As a result, the number of people hiring domestic services to free up their time has steadily increased. Moreover, this figure is still growing despite the shocks of the 2008 recession, previous financial crises, and, most recently, COVID-19.

This indicates that purchasing a franchise in the cleaning or home renovation sectors is significantly more reasonable than other choices while remaining one of the most lucrative franchises in the UK.

Choosing the appropriate industry doesn’t require you to be eager to engage in manual labour. Other franchisors offer growth opportunities and area development where y our sales, people, and financial management abilities may be more highly regarded and valued.

2. Gardening Franchises

A gardening franchise is similar to the other home services previously described, and it offers the following benefits: 

  • Incredibly affordable
  • It doesn’t require you to invest in real estate or acquire a building
  • Able to withstand shocks brought on by financial crises and (as we recently learned) pandemics
  • Potentially available to experts in sales and people management as well as environmentally conscious professionals
  • Constantly in demand

3. Financial services

Financial services are another profitable venture you should consider if you’re considering becoming a franchisee. This could entail offering a broad range of financial help to businesses, other organisations, and people, such as:

  • Accountancy
  • Cost management
  • managing debt
  • financial preparation
  • Retirement planning

The only drawback is that you often need prior education or experience in the UK financial services sector.

There are sure franchisees in finance that offer training. But if you have no background in finance, as you might expect, it’s pretty complex.

4. Home Care Franchises

Over 10 million adults in the UK over 65 can receive support through home care services.

This could entail aiding all home healthcare requirements, from helping those with disabilities or mobility issues to disorders like dementia.

Others offer general home care services that help older adults with shopping, cooking, cleaning, and money management.

Due to the rapidly ageing population in the UK, this industry will undoubtedly grow over the next few years. But it’s also a choice that should only be made by the most devoted and compassionate potential franchisees.

5. Fitness and Exercise Services

A franchise in the health and fitness sector can be right for you if you already have training in nutrition or health or if you’re willing to do so.

A new gym opening always seems to be nearby, showing a significant demand for this industry. However, we might also anticipate a high turnover rate given that old gyms are permanently closing and being replaced by new ones.

6. Waste Removal Services

A small degree of physical conditioning is typically required if you plan to work on the manual end of a removal service franchise or waste removal service company. However, it may not be as “on-trend” as a fitness franchise.

Since it enables them to continue providing the same services they always have — or in which they have experience — they frequently become franchisees in the removal or waste removal industries:

  • So people are aware of a brand.
  • having access to improved procedures
  • Despite having access to a considerably larger consumer base already

7. Pest Management

Even though it’s not the most glamorous profession, a pest control franchise is a profitable one because it’s so vital.

Again, the low entry barriers, the minimal requirement for up-front money, and the strong demand for services are different motivating elements for people to enter the industry.

Various franchise systems offer the chance to enter the area development or master franchise level.

Instead of picking the most profitable companies, choose the industry that suits your skills, interests, and abilities.

Flower Rental Co.: A Profitable Franchise Opportunity

As of today, Flower Rental Co. is one of the most profitable franchises in the industry because your joining fees do not drive us. Instead, your starting costs are based purely on the number of displays you wish to start your business with.

Like many excellent businesses, the idea behind The Flower Rental Co. is relatively straightforward. We switch out gorgeous floral arrangements we rent to businesses every four weeks. In exchange, our customers pay a rental fee that is a small portion of the price of an actual floral display.

The Flower Rental Co. delivers an outstanding winning strategy by combining superior operational systems and unmatched customer service methods.

Interesting Factors to Help You Make an Easy Decision in Choosing Us

We’re aware that there are many franchises to choose from, but here at Flower Rental Co., we can offer the following to our franchisees:

  • Reduced Risk: The Flower Rental Co. is a well-known franchise with a systematic and tested business strategy.
  • Professionally crafted brand: The Flower Rental Co. is a registered TradeMark with HMRC. Building consumer loyalty and validating your firm are aided by a skilled brand marketing strategy.
  • Training: The Flower Rental Co. offers a thorough training program to teach franchise owners and managers—even those without previous business experience—about successful sales, operations, and marketing. Our methods and training are deliberate and purposeful, preparing you to run a profitable franchise.
  • Continuous Support: The Flower Rental Co. will continue offering managerial assistance and problem-solving techniques to its franchise owners. A fantastic way to keep owners engaged within a supportive family of franchise owners is through annual conventions and owner meetings.
  • Economies of scale: The Flower Rental Co. establishes cost savings on essential commodities needed to operate your franchise by utilising the collective purchasing power of our entire network. These savings may more than make up for the initial franchise price.
  • Exclusive Territories are made available to franchise owners by The Flower Rental Company.
  • Field Sales Trainer on-site: The Flower Rental Co. offers assistance during the startup phase, guiding you through your first week. We want to establish excellent habits immediately since getting started with a planned method is crucial.
  • Success Rate: Compared to isolated startups, companies that are a part of a more extensive system often have a far greater success rate. Any new independent firm with a steep learning curve risks spiralling out of control. A single phone call away from knowledge and assistance can help you expand your business more quickly, affordably, and with less guessing.

Research & Development: This is a continuous activity as we work to improve the Brand and its operational systems for the benefit of all franchises. The Flower Rental Co. is amenable to any innovations that may benefit the company.

In Conclusion

Overall, the most crucial “takeaway” is that you must be aware of the essential things to do before choosing and venturing into a new franchise. You must establish your budget, find an industry suitable for you, create a work schedule, select the wisest and most profitable location, and ask the right questions. Another thing is that despite possibly being the most profitable enterprise, the fast-food industry is by far the most expensive to start as a franchisee.

Meanwhile, selecting the most profitable franchise opportunity from a sector where customers constantly need your services is a good idea. In that way, you’ll always be prepared to make money accordingly.

Most importantly, it’s best to do your research now when it comes to choosing the most profitable and suitable franchise for you, and one that you should consider is Flower Rental Co. Our franchising opportunities are guaranteed to be a worthwhile investment for you because of the benefits we offer along the way. So if you’re interested in learning more about our franchise, don’t hesitate to contact us immediately!