What Is a Franchise and How Does It Work in the UK?

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Have entrepreneurial aspirations but aren’t sure what type of business to launch? Or have an idea of the products or services you want to offer, but aren’t sure where to begin?

Franchising might be right for you! Let’s dive into everything you need to know about this innovative business model, including how an ActionCOACH franchise consultant can help if you’re interested in launching a business consulting startup. 

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What Is A Franchise?

A franchise is a ready-to-launch business model. As a franchisee, you pay a licensing fee and ongoing royalties to your franchisor to operate under their name. Franchisors aren’t just any company; they have established brand recognition and a proven business model. This business model eliminates the guesswork of where to begin. 

We’ve all heard the staggering statistics surrounding startup failure rates. If you launch your startup solo, you’ll be up against the competition. As a franchisee, you are the competition! As such, franchises have much higher success, scale, and sustainability rates. The brand you’re considering can provide its internal statistics before you commit. 

How Does a Franchise Work in the UK?

Your franchisor wants to see you succeed. The more money you make, the more money they make. It’s a true win-win. So, in addition to licensing their brand name, products, and services—you’re provided with a proven business model and initial and ongoing support.  

Even with support, franchise agreements are legally binding contracts. The initial contract is typically a 5-year minimum, so they’re not to be taken lightly. For this reason, most turn to a franchise consultant. A consultant guides you through the process from start to finish, including helping you find a business concept that aligns with your objectives. 

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What Type of Franchise Opportunities Are Available in the UK?


Fast food restaurant brands are often the first thing that comes to mind, but you can find franchise opportunities in a variety of industries. If you have an interest, there’s likely to be a concept to consider. 

Top Franchise Industries 
  • Arts & crafts
  • Automotive services
  • B2B services
  • Business coaching
  • Convenience stores
  • Fast food 
  • Gas stations
  • Health & wellness
  • Home services
  • Mobile services
  • Package & Shipping
  • Pet services
  • Real estate
  • Senior care
  • Sports & fitness
  • Staffing & HR
  • Travel & excursions 
  • Tutoring & education
  • And more! 
Some of the top UK franchises in 2024 

Some of the concepts below have local brand recognition, while others are global.

  • ActionCOACH
  • Anytime Fitness
  • Kumon Maths & English
  • MollyMaid
  • ServiceMaster Clean
  • Starbucks
  • Subway
  • TaxAssist Accountants

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The Top 8 Benefits of Franchising vs Startup

At first glance, it might not sound like investing in a franchise is worth it. Why pay for licensing, working capital, royalties, and renewal fees when you can just go it alone? The fact of the matter is, that opening your doors may cost less on your own. However, it’s likely to cost significantly less in trial and error to invest in a franchise. This is due to the 8 benefits below. 

#1 Ease of Entry 

It will take hard work and dedication, but franchise business models are designed with everyday people in mind. Yes, tenured entrepreneurs are welcome, but the success framework provided is often designed for novice business owners.

#2 Roadmap and Business Plan

Determining where to begin and what needs to be done is eliminated, as you’ll be provided with a step-by-step roadmap. You’ll also be provided with an initial business plan. You can tweak some areas of your business plan, but the core framework is included with your licensing fee.  

#3 Initial and Ongoing Training

Once you sign on as a franchisee, most franchises will give you training to get you up to speed.  This helps you build your essential skills and familiarise yourself with the brand you’re joining. This training can be virtual or in person depending on the franchise.

#4 Marketing

No need to hire a marketing firm or create your own marketing content, as marketing is built in. From printed collateral such as business cards to flyers, mailers, menus and brick-and-mortar signage. You’ll also benefit from the brand’s digital marketing efforts and are often provided guidance for your solo digital marketing endeavours—such as how to leverage social media. 

With ActionCOACH, 5% of your revenue, capped at £500, is allocated to the dynamic marketing fund. This provides you with direct access to a skilled team of marketers who can help with everything from your website to documenting your client successes.

#5 Operations Plan

Once you’re up and running, you’ll need to have structured systems in place to maintain time and cost-efficient operations. No need to reinvent the wheel, as you’ll be provided with best practices for daily operations for you and your team. 

#6 Core Vendor Procurement 

No need to source, negotiate, and procure vendors for brand essentials, as your franchisor has already done this for you. You’ll still need to source everyday essentials such as office supplies, but your core products and operational essentials are sourced—at prices that you can only access with group purchasing power. 

#7 Easier Access to Business Financing

If you don’t have the cash for your initial licensing and working capital, you’ll need to apply for a business loan. In addition to assessing your credit, you’ll need to provide proof of concept with a business plan. Your franchisor has proven proof of concept and provides you with a structured business plan. This makes it easier to secure a loan and investors. 

#8 Brand Recognition  

In exchange for instant brand recognition, you’ll need to adhere to the outlined brand guidelines. Not to worry though, as there are plenty of ways to make your business your own. How this is achieved is unique to the industry and concept. For business coaching, you might have industries or demographics that you provide specialty coaching to.

Want to Learn More About Owning an ActionCOACH Franchise?

If you have a background in business and you have a passion for people, schedule a discovery call to learn more. Our business model is proven and it’s a career path that is personally and professionally rewarding. Join ActionCOACH in growing businesses, building communities, and changing lives! 

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