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 Louise Harris
Louise Harris writes: The initial investment in a franchise varies greatly across the industry, but it’s one... read more
Answered by John Pratt
John Pratt writes: As with all franchises, you have to ask yourself: Is this the sort of... read more
Answered by Alan Wilkinson
Alan Wilkinson writes: One of the attractions of franchising is the resilience it shows through hard times... read more
Answered by Phil Archer
Phil Archer writes: The Bounce Back and CIBILs loans brought in last spring originally replaced the Enterprise... read more
Exciting Franchise Opportunities
Companies to Consider
Deluxe Window Cleaning
Year 1 - £29,309 Year 2 - £48,306 Year 3 - £53,387
Recognition Express Ltd
Third party and personal investment
This would be discussed at interview stage
The Eaton Practice
In excess of £70,000
Jackson Fire & Security
Mr Simms Olde Sweet Shoppe
Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
Added 2 years ago | 2 min read
Added one day ago | 2 min read
Added one day 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