The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
In a five-year franchise agreement, typically how soon does a franchisee start to make a profit
Much does, of course, depend on how good the franchise, franchisor and franchisee are. Nevertheless, the reason the great majority of franchise agreements in the UK last for five years is that historically franchise owners have made a substantial loss in the first year - so you need to have sufficient working capital to allow you to trade through the loss making stage - make a small loss/break even in the second year, break even or make a small profit in the third year and are in substantial profit in years four and five.This timescale set out above is attractive to franchise owners, bearing in mind that they will be able renew their franchises at least once, provided they have not been in breach after the five-year term. In some franchises, such as McDonald’s or KFC, which involve very high initial expenditure, a longer term franchise agreement is offered to cater for the fact that it will take longer for the franchise owner to trade at a profit in view of the very high property costs that will have been incurred.
You might also be interested in

Answered by John Pratt
John Pratt writes: First, you have to work out who is responsible for the poor performance because... read more

Answered by Louise Harris
Louise Harris writes: In respect of renewal fees, every franchise is different. Prospective franchisees are guided to... read more

Answered by Alan Wilkinson
Alan Wilkinson writes: An experienced franchisor will know what works and what doesn’t work when marketing its... read more

Answered by Shelley Nadler
Shelley Nadler writes: It’s possible, even if a franchisee is granted an exclusive territory. The nature and extent... read more
Exciting Franchise Opportunities

Start your own PGH Beegone franchise
Yes
Find Out More£134,000-£210,000+

Request Free Information
Send a free enquiry to PGH Beegone for further information!

Start your own World Options franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to World Options for further information!

Start your own Footlights Theatre School & Academy franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Footlights Theatre School & Academy for further information!

Start your own TaxAssist Accountants franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to TaxAssist Accountants for further information!

Start your own Caremark franchise
Yes
Find Out MoreN/A

Request Free Information
Send a free enquiry to Caremark for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Brexit property investment myths BUSTED!
Added 2 years ago | 2 min read
-
Shining the spotlight on women in business
Added 14 hours ago | 2 min read
-
How being your own boss can boost your health and happiness
Added one day ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news