Who can become a franchisee?

Franchising can be an exciting way to run your own business. However, prospective franchisees often have questions about who can participate and what restrictions may apply. Here, we explore key eligibility considerations, with insights from leading franchise experts…

Are there any restrictions on who can become a franchisee?

Surprisingly, becoming a franchisee doesn’t require a high level of education or prior business experience. As John Pratt, senior partner at Hamilton Pratt, explains: “Being a franchisee is not dependent on high educational attainment or even business experience. However, prospective franchisees need to bear in mind that for the better franchise offerings, franchisors will only select franchisees who they believe will make a success of their business.”

Franchisors look for candidates with drive, ability and sufficient funding. Other qualities that franchisors value include relevant business experience, family support, enthusiasm and financial stability.

Can I buy a franchise with a business partner?

Yes, but you need to address several important issues from the start. Vicky Wilkes, head of legal at Aston Villa Football Club, explains: “A franchisor may want to interview all the potential franchisees. They might carry out background checks to ascertain financial history and business experience before agreeing to grant the franchise.”

Decision-making and management responsibilities should be clearly outlined in a partnership agreement, including the roles of silent partners and asset division if the franchise is sold.

Alan Wilkinson, head of franchise development at The Franchising Centre, adds that whether through a limited company, partnership or sole trader arrangement, “one person will be named as the principal and have ultimate responsibility for the operating of the business and any personal guarantees required.”

Can I buy a UK franchise if I live abroad?

It’s possible, but there are considerations around support and the structure of the franchise. Brian Duckett, former chairman of The Franchising Centre, says: “Firstly, you could acquire the master franchise for your country for a system that operates in the UK, but which wants to expand overseas… Alternatively, you could simply open a franchised outlet where you live and thereby have a direct relationship with the UK franchisor.”

The key is ensuring the franchisor is adequately prepared for international expansion and can provide the necessary support.

I’m an undischarged bankrupt. Does that prevent me purchasing a franchise?

Not necessarily. Shelley Nadler, legal director at Bird & Bird, explains: “There is nothing in principle preventing an undischarged bankrupt from purchasing a franchise. A bankrupt can own assets and operate a business.”

However, there are restrictions: an undischarged bankrupt cannot act as a director or shadow director, may face borrowing limits and must disclose their status to the franchisor. Funding may need to come from a partner or spouse instead.

I’m over 50 and want to invest in a franchise. Would my age count against me?

Age is generally not a barrier. Louise Harris, principal at Franchise Projects, emphasises: “Age is but a number – and that’s never truer than in franchising. The barriers come from a franchisee’s own aptitude, skills, ability and, I must admit, physical capacity for the work in the instance of an owner-operator-type franchise.”

What matters most is enthusiasm, adaptability, ability to use technology and physical capacity if required. Harris notes, “If you feel overwhelmed or concerned, it’s probable that you won’t be happy long-term, so perhaps look for an alternative.”

Do I have to personally participate in the franchise I invest in?

Participation depends on the type of franchise. Shelley Nadler explains three common models:

• Job franchise: The franchisee provides the service or product themselves, often without employees initially.
• Management franchise: The franchisee oversees staff and operations, focusing on administration and marketing rather than direct service delivery.
• Investment franchise: The franchisee invests capital and employs a management team to run the business, often without day-to-day involvement.

Choosing the right type depends on your skills, financial capacity and desired level of involvement.

Franchise opportunities are open to a wide range of people. Eligibility depends less on your age, experience or location, and more on having the right skills, funding, commitment and a clear plan to succeed.