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.
Is opening a franchise a good financial investment?
John Pratt writes:
It is simply not possible to refer to taking a franchise as an “investment”, whether good or bad. All that franchisors can do is to provide a tried-and-tested system and to confirm that if franchisees strictly follow the system that they will be profitable. The question is how profitable?
Whilst franchisors provide the system, of course, how well a franchisee’s business performs will depend on the extent to which a franchisee complies with the franchisor’s system, how good he or she is at business, and how much time and effort a franchisee is prepared to put in to their franchise business.
Generally, very few franchisees of established and well-known systems fail, although a tiny minority do – unlike the very high failure rate in non-franchised businesses. Starting your own business is inherently risky. Franchising substantially reduces that risk and that is as much as can be said.
As in the case with any business owner, the aim is to make a trading profit during the term of the franchise agreement and also to be able to sell the franchised business at a profit when the time comes for a franchisee to move on. Unprofitable businesses are hard to sell and obviously the more profitable it is the higher the payment that a franchisee would receive from a purchaser.
John Pratt is senior partner at specialist franchise firm Hamilton Pratt and has advised franchisors for over 25 years.
You might also be interested in
Answered by Louise Harris
Louise Harris writes: Richness or wealth is relative. We always want more, I guess. So, what is... read more
Answered by Shelley Nadler
Shelley Nadler writes: A concern that businesses may have when deciding to franchise their business, is the... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: There are two elements to consider here. First is the franchise fee itself, and... read more
Answered by Louise Harris
Louise Harris writes: It’s quite a lot like choosing a life partner. You need to be interested... read more
Exciting Franchise Opportunities
Companies to Consider
Laser Clinics United Kingdom
From £18-20,000 per week. First year R.O.I 40%
Third party through banks
BT Local Business
£1-2m t/o, 10-20% profit
The Design Print Distribution...
Turnover circa £120,000. 30% profit level
Personal ROI to be within 24
School of Rock
The Travel Franchise
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 3 years ago | 2 min read
Added one day ago | 2 min read
Added 2 days ago | 2 min read
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
What Franchise Newsletter
Keep up to date with all the industry news