Low cost doesn’t equate to low profit. Several businesses offer their profitable franchises at a low price and can still generate more sales to benefit them and their franchisees. This article will look at the top 5 low-cost franchise opportunities in the UK and several concerns you may have when purchasing and investing in this type of franchise.
1. The Flower Rental Co.
Like all successful companies, The Flower Rental Co. has a straightforward concept. They provide businesses with the most exquisite floral arrangements and switch out the design every four weeks. In exchange, their customers pay a rental charge that is a small portion of what a simple floral arrangement would cost.
Your starting expenditures for their franchise are solely determined by the number of displays you want to use as the foundation for your company. The Flower Rental Co. doesn’t require you to be a florist to succeed; all displays are created by a team of skilled florists and designers. What to anticipate from their franchise package is listed below:
- Exclusive territory
- Three sizes of floral designs: large, medium, and small
- An intensive training program at their headquarters in the south of Spain
- All the correspondence and promotional materials
- Everything you need to launch a business, including supplies and equipment
- Client relationship management (CRM) software
- Accounting programs
- Support and guidance for company establishment
- Software for operations management that is unique and focused
2.Fantastic Services
Fantastic Services has 530 franchisees and 36 area developers that serve 50,000 consumers per month. Fantastic Services’ industry-leading software lets customers find and book over 100 high-quality services from their sofa.
The franchise options can meet anyone’s field of expertise, aspirations, and resources, including cleaning, handyperson, removals, pest control, gardening, and garbage removal.
With over 100 standard services and an established business plan, you can quickly succeed by motivating your team to offer a unique experience.
Three franchise options are available.
- Master Franchise: Bring the Fantastic brand to a new country or larger territory as the central office guides you.
- Area Development Franchise: You own an exclusive zone where your teams can supply your chosen service(s). The head office team gives assistance, training, and direction, but you must be proactive and engaged.
- Working Franchise: Manage a small workforce and deliver services. It handles small businesses’ marketing, SEO, customer service, and bookkeeping.
Fantastic Services franchisees have a substantial competitive advantage. As a Fantastic franchisee, you may implement over 100 domestic services fast and efficiently. Fantastic Services’ ease attracts many customers.
Full training and marketing support help you develop a successful home services business. Fantastic Services will give you the tools and assistance you need to become the local leader.
3. Coffee-Bike
Coffee-Bike is Europe’s fastest-growing franchise. The bikes operate without power or water. Due to its mobility, it serves organic, artisan coffee in unexpected places.
Coffee-Bike has won several honors for creativity, business model, and goods since its 2010 launch in Germany. Coffee-Bike has 250 operational bikes in 13 countries, including the UK.
As a UK franchise partner, you benefit from Coffee-European Bike’s expansion, ten years of operational experience, and a clear marketing strategy. With only 20 motorcycles in the UK, you can become a significant franchisee in your area. The company’s robust foundation will support your Coffee-Bike business.
Many folks want their café or coffee business. Lack of finance often prevents achieving this dream. Meanwhile, the Coffee-Bike franchise model is quite a good investment because it allows you to operate your mobile coffee shop on three wheels without fixed costs and significant upfront capital – the lowest investment starts at just £12,490.
Many fixed coffee shops and mobile models demand over £70,000. Coffee-Bike enables entrepreneurial freedom by meeting demand in unique locations. During the COVID-19 outbreak, many businesses couldn’t trade in office buildings. With its mobility, franchisees may sell coffee or hot chocolate in public parks to catch folks on their daily walk.
4. Concept Claims Solution
The concept has helped disadvantaged policyholders for 20 years. Vision has helped policyholders receive a fair deal swiftly, their homes repaired, and their life back to normal, all at no expense to the insured.
The brand’s experience and years of expertise set Concept apart. Three franchised networks and three non-franchised enterprises under the Insurance Solutions Group add strength. This collection of successful enterprises has built specialities, and its franchise partners benefit from their connections, experiences, longevity, innovation, and success-promoting brand.
As a Concept Claim Solutions franchise partner, you’ll manage policyholders’ property damage insurance claims.
Concept Claim Solutions’ licensed contractors provide free service from the initial survey to the repairs.
A consolidated phone centre and claims handling support team help with contractor appointments, assessing insurance claim validity, and negotiating and settling client claims.
The Insurance Solutions Group answers the phones seven days a week, 24 hours a day, and handles 30,000 calls yearly.
5. Fun Fest for Children
Fun Fest for Children franchises include the following children’s services franchise systems:
- Fun Fest Holiday Clubs
- Before-and-after-school Fun Fest clubs
- Children’s Fun Fest Parties
This allows franchisees freedom in terms of business kind and investment level.
High-quality holiday childcare is crucial for families and the economy: it allows parents to work and gives children access to suitable activities they might not otherwise have.
All Fun Fest services are child-led, allowing children to select what to do, learn, or explore and supporting their choices. Parents want quality childcare, education, and entertainment. Children are savvy shoppers. They’re not frightened to say what they want. Fun Fest listens to children to provide child-centred services.
Their franchise works by having the franchisee own a postcode-based territory in the UK where they are the single Fun Fest operator. The franchise agreement outlines the franchisor’s and franchisee’s responsibilities.
The Fun Fest franchise package includes training, an operation manual, resource packs, support and mentoring, a school/ setting finding service, an Ofsted license, and a Digital marketing package.
Advantages of Investment in a Franchise Business UK
Franchisees operate under a recognised brand with proven mechanisms to supply a product or service to a commercial or residential customer base.
In most cases, you don’t require franchise experience because a franchisor will give initial and continuous training.
As part of the first franchise fee package, you’ll receive a complete operation manual (a guide to running the firm) and help launch your business, market and promote the franchise, maintain clients, business development, sales, invoicing, and collect payments.
While franchisees manage their businesses, they have the support of an experienced franchisor who has stress-tested the company over many years in numerous places.
In the UK, 1,000 franchisees operate in practically every field imaginable. The £17.3 billion franchise industry employs 710,000 people.
Franchisees are getting younger and more female. 18% of franchisees are under 30, and 37% of new franchisees are women, up 20% since 2015.
Transform A Low Cost Franchise into A Profitable Venture
While most low-cost franchise possibilities in the UK involve hands-on work, with the franchisee performing all administrative and operational duties as well as marketing and delivery of the product or service, purchasing a franchise is different from buying a job.
The success of your low-cost franchise business greatly depends on how much effort you put into it and how closely you adhere to the method you have chosen to follow. Yes, the franchisor is there to support, help, and offer guidance, but ultimately it is your job to launch and expand the franchise by giving customers the goods and services they require.
Researching For Affordable and Low Cost Franchises in The UK
When purchasing a franchise, you must research the company you want to buy into. This entails investigating the industry the company operates in, the franchise’s origin story and founders, the value of the offering, and the rivals in the field.
It’s also a good idea to talk to as many established franchisees as possible to learn more about the industry and whether or not their expectations have been reached.
Any information about future earnings reviewed by a skilled accountant is essential to your investigation.
You must consult an industry-experienced lawyer to analyze the franchise agreement and a legally binding contract and get financial guidance. Several franchise-focused law firms in the UK are also members of the British Franchise Association.
Additionally, you consider whether you are qualified to own a franchise. Are you self-driven, tenacious, ambitious, challenging, and able to adhere to a tried-and-true company model? If you say yes to each of these, you have what it takes to be a successful franchisee.
There are numerous profitable low-cost franchises available. The key is to pick the one that best fits your needs and interests as an individual and work with a franchisor to develop a fruitful, long-lasting business relationship
Preferable Franchise Opportunities with Low Startup Costs
Affordable franchises are accessible in many industries, and low-cost UK franchises provide a wide range of investment prospects.
Personal services, mobile franchises, food and catering, health and fitness, and aged care have all seen significant growth in the UK.
However, you should invest in a company you are enthusiastic about to be a successful business owner. You established a positive working connection with the franchisor and head office staff entrusted with helping you while you are a franchisee. You must also have faith in the brand’s goods and services.
Franchises with low fees and above-average returns
According to the 2018 British Franchise Association NatWest industry survey, a new franchise unit’s average total start-up cost was £56,500, 60% of franchisees had annual sales above £250,000, and 93% were profitable.
For instance, a low-cost restaurant franchise or a low-cost realtor franchise offers a viable opportunity for someone with limited funds who wants to start small, minimise the risk element, and build a business at their own pace that can, over time, provide a healthy return on their investment. The survey, however, also revealed no significant differences between smaller and larger businesses in terms of profitability