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.
What’s the usual length of a franchise agreement?
Most franchise agreements in the UK are granted for five years. A small minority are granted for 10 years and an even smaller minority are granted for longer periods such as 25 years. Longer periods tend to be granted by franchises such as McDonald’s, Burger King or KFC where there is a very substantial investment in property and where property is key, so that the lease of the property and the franchise agreement terminate at the same time. Franchisees are required to recover their costs in taking a franchise and make a return on their ‘investment’ before the expiry of the term. If, in the first year of operation, franchisees make a small loss, break even in the second year, make a small profit in the third year and then make more substantial profits in year four and five it would be unlikely that a franchisee would be able to recover his costs and make a profit if the agreement was to last, say, for three years. In addition to the initial term, franchise agreements should be automatically renewable, provided that the franchisee has performed its obligations under the franchise agreement. The British Franchise Association likes to see two guaranteed automatic renewals when a five-year term is granted and one when a 10-year term is granted. At the end of this period, even if a franchisee does not have an automatic right of renewal, franchisors will renew a franchisee who is performing well.
You might also be interested in
Answered by Vincent Anthony
Vincent Anthony writes: The property market has wide appeal because it is relevant to everyone: we all... read more
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
Exciting Franchise Opportunities
Companies to Consider
Chop & Wok
Profit between 27 to 33% of turnover
Fun Fest for Children
Amigos Burgers and Shakes
£480,000 - £1m (from 14% profit)
The Bike Fitters
Return of initial investment and an estimated £240,000 p/a in sales
Operational breakeven in the first month of trading and return on capital investment from approx.18 months
Platinum Property Partners
£50,000 to £150,000
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 weeks ago | 2 min read
Added 3 weeks ago | 2 min read
Added 3 weeks 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