Franchising in the UK is BIG.

I’m going to guarantee you’ve heard of brands that are franchises (and may not know it). I’m pretty sure you’ve bought from one over the last week too. Just these facts should give you an inkling about how successful and prevalent this model is, as well as a clue about the opportunities that are out there:

There are more options open to you than either working as a paid employ or going it utterly alone.

Franchsing is a diverse and dynamic industry. It offers opportunities for budding entrepreneurs and established businesses alike. It’s a business model that has stood the test of time, providing a proven formula for success and given a huge number of people both the satisfaction of running their own business while enjoying the benefits open to them.

This is all well and good. Because many people aren’t clear what franchising is and don’t appreciate why is it such a powerful business tool.

I’m going to explore the above (and more) in this blog post. I’m going to talk about the history of franchising, how it has evolved globally and within the UK, and take a closer look at some of the most notable franchises operating today, from household names to emerging stars.

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What is franchising?

Let’s start with the basics. What even is `franchising?’

At its core, franchising is a partnership between two parties: the franchisor, who owns an established brand or business model, and the franchisee, who operates a branch of the business under the franchisor’s guidance.

This relationship allows franchisees to benefit from the reputation, support, and systems of the franchisor while still running their own business. A good franchise is one that is a win-win for everyone – if the franchisee is doing well…so is the franchisor. For franchisees, it’s an opportunity to start a business with a lower level of risk compared to starting from scratch. Meanwhile, franchisors expand their footprint and revenue without taking on the responsibility of running each location directly. This win-win setup has made franchising a cornerstone of the business world and particularly important in the UK economy.

That’s it in short. The concept is simple – the detail is usually more…detailed (of course). But that’s it.

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A brief history of franchising

The global beginnings of franchising

Franchising isn’t a modern invention—it has deep historical roots.

Some trace its origins back to the Middle Ages, when local authorities granted individuals rights to operate businesses, collect taxes, or maintain order in specific areas. This was a primitive version of franchising, where individuals operated under a larger system’s authority.

In the 19th century, franchising took a more recognizable form.

One of the first structured franchise agreements can be attributed to Isaac Singer, who franchised the rights to sell his sewing machines in the United States. Yes – those ones. You’re almost certainly to have heard of this brand and it’s quite possible you know someone who has one of these machines. A franchise that started over 170 years ago in 1851 is still alive, kicking and famous.

This marked the beginning of a structured business relationship where training, branding, and operating procedures were all part of the package.

The United States also witnessed the rise of large-scale franchising in the automotive and food industries. Companies like Coca-Cola and General Motors granted franchises to expand their reach, setting the stage for the modern franchising boom. Just about every fast food chain you’ve heard of is a franchise, as well as gyms, hotel chains, DIY stores and more.

These franchises are huge. Again…this is a testament to their success.

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Franchising in the UK: From pubs to fast food giants

Franchising, initially kicking off in the US quickly crossed to the UK.

In the UK, franchising began to take shape with tied pubs, where breweries would license pub owners to sell their products exclusively. This was an early form of business franchising, though it lacked the structured support systems we see today. Pub chains you’ve probably heard of include Marston’s, Fullers and Greene King.

The real franchising boom in the UK started in the mid-20th century. American fast-food chains like McDonald’s, KFC, and Burger King entered the UK market, bringing with them their tried-and-tested franchise models. These brands introduced the UK to the benefits of franchising: uniformity, quality control, and rapid scalability. Over time, franchising expanded beyond fast food to include industries like retail, education, home services, and even legal and financial consultancy.

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The current state of franchising in the UK

Today, franchising is a thriving sector in the UK.

And yet despite having heard of the many brands that are franchises…they seem to slip beneath the radar of many people.

Perhaps it’s because when you visit a franchise’s location that branding and products are so standardised you’d be forgiven for thinking you’re in just one of a large business’ premises and it’s directed from a large office somewhere. It could be argued that this means the franchise sector is a victim of it’s own success in this respect…visibility can be a problem.

But consider this.

According to the British Franchise Association (BFA), franchising contributes over £19 billion to the UK economy annually and supports more than 700,000 jobs. There are now over 900 different franchise brands operating in the UK, ranging from small local businesses to global giants.

One reason for franchising’s success in the UK is its versatility. From gyms to tutoring services, dessert parlours to estate agencies, franchising spans a wide array of industries. This means there’s something for everyone—whether you’re an aspiring entrepreneur or an established brand looking to scale.

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Why franchising is popular in the UK?

1. Lower risk: Franchising offers a proven business model, reducing the risks associated with starting a business from scratch. Franchisees receive training, marketing support, and a recognizable brand name, which can significantly boost their chances of success.
2. Scalability for franchisors: For businesses, franchising is a cost-effective way to grow. By licensing their brand and processes, they can expand without the overhead of directly managing each location.
3. Consumer trust: British consumers tend to trust established brands. Franchising allows new business owners to tap into that trust, giving them a competitive edge in the market.

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Major franchises in the UK

The household names

Some franchises have become household names in the UK, thanks to their consistent quality and widespread presence. Let’s take a look at a few of the big players:

• McDonald’s: Since opening its first UK branch in Woolwich in 1974, McDonald’s has become a cornerstone of British high streets. With over 1,600 outlets nationwide, it’s a prime example of how a well-executed franchise model can achieve phenomenal success.
• Domino’s Pizza: Entering the UK market in 1985, Domino’s quickly became the go-to pizza delivery service. Its innovative online ordering system and consistently high-quality products have cemented its reputation as a leader in the sector.
• Subway: Known for its customizable sandwiches, Subway has expanded rapidly across the UK. It appeals to health-conscious consumers and those looking for quick, affordable meals.
• Costa Coffee: The UK’s love affair with coffee has made Costa one of the country’s most successful franchises. With over 2,000 stores, Costa has become synonymous with quality coffee and cozy cafes.

Notice how they’re all food retailers? Don’t be too surprised – food is (not surprisingly) big business and these are long established brands. All of these aside from Costa Coffee are American too – which meant by the time they arrived in the UK they were already well established enterprises.

The rising stars

While big brands dominate the landscape, smaller franchises are also making waves by carving out unique niches:

• Kaspa’s Desserts: Specializing in indulgent treats like waffles, sundaes, and milkshakes, Kaspa’s has tapped into the UK’s growing dessert culture. The vibrant, Instagram-friendly interiors of its locations make it a hit among younger customers.
• Snap Fitness: This 24/7 gym franchise has grown in popularity due to its convenience and affordable pricing. With a focus on flexibility and no long-term contracts, Snap Fitness appeals to modern lifestyles.
• Tutor Doctor: Operating in the education sector, Tutor Doctor provides personalized tutoring services for students of all ages. With education being a priority for many UK families, this franchise has seen consistent demand.

These are newer brands – and reflect a growing trend of the franchising model expanding into other sectors (aside from food). It represents the model maturing and again points to it’s overall success.

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Emerging trends in UK franchising

Franchising in the UK continues to evolve as a result of broader societal changes. The traditional models of either working for someone else/a business or otherwise starting your own business from scratch have been supplemented by the franchise system.

There definitely seems to be a move towards the benefits franchising provides.

Here are some key trends shaping the industry:

1. Sustainability: More franchises are focusing on eco-friendly practices, from reducing waste to using renewable energy sources. Consumers are increasingly prioritizing sustainability, and franchises that adapt to this demand are gaining a competitive edge.
2. Technology integration: Whether it’s app-based ordering, virtual consultations, or AI-driven marketing, technology is transforming how franchises operate and connect with customers.
3. Work-life balance: Many modern franchises cater to franchisees who want a better work-life balance. Home-based franchises and part-time opportunities are becoming more common, attracting a wider range of entrepreneurs.
4. Pet-based services: From dog grooming to pet photography people are spending increasing amounts of cash on their furry friends.
5. Legal services: The traditional solicitor-in-an-office is gradually moving into a series of individuals and teams who often work from home to drive down costs and improve customer offerings.

Like every other aspect of business (and society!) there are always new developments that mean there are opportunities for those who spot and capitalise on them.

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How to choose the right franchise in the UK

If you’re considering franchising, the options can feel overwhelming. Here are some tips to help you find the perfect fit:

1. Assess your interests: Choose a franchise that aligns with your passions and skills. If you love fitness, for example, a gym franchise like Snap Fitness might be a good fit.
2. Research the market: Look into the demand for the franchise’s products or services in your area. A dessert franchise might thrive in a busy city but struggle in a small rural town.
3. Check the support system: A good franchisor will provide comprehensive training and ongoing support. Speak to existing franchisees to get a sense of the level of assistance you can expect.
4. Understand the costs: Franchising requires an upfront investment, along with ongoing fees. Make sure you understand the financial commitment and have a clear plan for funding.
5. Read the fine print: Franchise agreements can be complex. Consider seeking legal advice to ensure you fully understand the terms before signing.

There are a huge number people who express an initial interest in franchising but never quite there for various reasons – but the opportunities are there for the right people with the right mindset.

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The future of franchising in the UK

The truth is that franchising in the UK shows no signs of slowing down.

More and more people are becoming franchisees, taking advantages of the benefits of how they work and the rewards can be very worthwhile – both in terms of finance remuneration, true. But also things like work-life balance, satisfaction, flexibility and more.

As consumer preferences evolve and new industries emerge, franchising will continue to adapt and thrive. With its combination of lower risk, brand recognition, and scalability, franchising remains an attractive option for both entrepreneurs and established businesses.

Whether you’re looking to start your own business or expand an existing one, franchising in the UK offers a world of possibilities. From fast-food giants to boutique services, there’s a franchise out there for everyone. So, if you’ve ever dreamed of being your own boss, now might be the perfect time to explore what franchising has to offer.