Biggest Group of New Recruits Ever Join the Caremark Network

December 31, 2018

Caremark welcomed its largest ever group of new franchisees to the network earlier in the month.

Six new franchisees recently completed their initial franchisee training and are now awaiting registration with the Care Quality Commission which will allow them to open their doors and trade.

The new business owners have taken territories across the UK further expanding Caremark’s reach into the local home care market.

Joining the network are:

  • Herkesh Malhi – Caremark (Birmingham South)
  • Baljit & Jugjeet Bains – Caremark (Havering)
  • Arshad Farid – Caremark (Calderdale)
  • Vasilis Koutlakis, Abir Altali who join Ahsan Sajjad (existing franchisee of Caremark (Dacorum and St. Albans) in taking Caremark (North Herts & Stevenage)

New franchisees undergo comprehensive in-house training at Caremark’s head office which gives them a thorough grounding in the care sector, the complex legislation that underpins it and Caremark’s model, giving them a solid foundation from which to start their new business.

Related: Senior Care Franchise UK – Should You Buy UK Senior Care Franchises?

Reflecting on the course Baljit Bains said: “We found the training to be extremely informative and enjoyable.

“The delivery of the content was excellent. We have learnt a lot and we are looking forward to applying our new knowledge and training to our business.”

Related: Care company receives highly recommended award

Being back in a classroom environment can be quite challenging for some who may not have undergone any structured learning since University or even school days. However, Caremark’s training is designed to meet all learning styles, so that by the time the students come to sit their end of course exam, they are well equipped to sit the testing 2 hour examination.

The next weeks waiting for their CQC registration will be spent marketing their forthcoming service within their local community, as well as making contact with key stakeholders in their area.

“As new business owners we are most excited about being able to generate work for our local community and to making a difference to the lives of our local elderly folk,” Baljit concluded.

Source: Franchise Direct

énergie Fitness Scotland Doubles in Size in 12 Months

December 31, 2018

The low-cost fitness franchise has grown from 6 to 12 clubs in a very short space of time.

To double the size of your business in twelve months is a very ambitious target, but this was exactly the target Mike Carr set himself when he took over as Head of Franchise Sales with énergie Fitness franchise Scotland just over a year ago.

This ambitious target has now been met, with Energie Fitness Scotland’s franchise network growing from 6 to 12 clubs. It New fitness clubs will now open in Ayr, Glasgow, Dumbarton and two in Aberdeenshire, while the deal has just been signed to open number six.

“I knew we had a great product and that the demand was out there, so for me setting a target of doubling the size of the business in one year was realistic and I’m delighted that we can now say it has been achieved,” explains Mike Carr.

“I don’t see myself as a salesperson, I view my role as giving people an unbelievable opportunity to transform their lives on a huge scale. These franchisees are not coming on board by accident, we have a great product, with a proven model, that hits exactly what the booming fitness market is looking for. We will be looking to add another 6 – 8 next year in the coming year, and again I believe this is very achievable.”

Mike Carr has had quite a journey with Energie Fitness franchise Scotland since starting work with them over 7 years ago as a favour to a friend.

“Previously I was working with a high-end equity company which bought and sold hotels abroad, but when the bank slump occurred and investment went down, I decided to take a break. This was when the owner of énergie Fitness in Dundee, my local club, approached me and asked me to become manager. Initially I turned it down, but I was talked around and agreed to take over for three months… and seven years later I am still with the company!

Related: Fitness Franchises – Should You Buy a UK Fitness Franchise?

“The club in Dundee wasn’t doing as well as it should have been at the time, and it took me 18 months to turn it around. After that, I wanted more and that’s when I was approached by head office. I started first as operations manager, where I placed a huge emphasis on improved customer service and cutting attrition rates for members. I was also involved in training the managers. I then moved on to sales and marketing manager specific to membership sales and am now head of franchise sales for Scotland and Northern Ireland.

“Why have we been so successful in the last 12 months? The success we have achieved is purely down to our business model; we make gym membership affordable but also give people top quality customer service ensuring they enjoy their experience and want to come back. When I show potential franchisees our model, and the potential for success, most are instantly interested.

“I tell all my potential franchisees the key to success in this market is to listen to what people want and most importantly give them choice. There are lots of gyms out there for people to go to now, so to stand out from the crowd you need to keep the costs low and deliver a world class service. People also want a gym that is constantly manned, where they are welcomed by a friendly face who can assist them if needed. Gym-goers want assistance from well-trained staff who can give them tips and encouragement. Members also want well-run fitness classes at convenient times and want enough of them that they do not have to put their name down weeks in advance. Excellent customer service is vital, you need encourage people to come back.”

Carr adds: “The statistics tell us that gym membership is increasing all the time, among all age groups, but especially young people. As a result, as these people get older the number gym members can only go up. So combine the exploding demand with an unparalleled level of service that Energie Fitness provides, and it is easy to see why we have so much interest. It really is the perfect time to become an Energie Fitness franchisee.”

énergie Fitness franchise Scotland are currently looking for franchisees across Scotland. For more information about this, please complete the form below!

Source: Franchise Direct

Inglot Ireland: what’s next for the family-run make-up franchise taking over London?

December 30, 2018

It was 2009 when a mother-daughter duo from Ireland met with Wojciech Inglot in London to discuss bringing the Polish makeup brand here.

Less than a decade later, Inglot Ireland has just opened its 20th store across UK and Ireland; this one in London – where the family franchise all began.

When serial entrepreneur Geraldine Swarbrigg and her daughter Jane met with Wojciech initially, he agreed on a partnership and took a chance on “the family from that lovely country from the west of Europe in the depth of recession”.

“We told him that if he was a partner, we’d find him the stores”. And the first Inglot Ireland store was opened in Liffey Valley in 2009.

“The standalone store wasn’t an experience as yet in Ireland. The Inglot stores were very big and bold with lots of colour,” said Jane, who takes the helm as company director alongside brother Peter.

“What was different about Inglot was that the customer could come in and the salesperson would know exactly what they were looking for [make-up]. They’d get that overall customer experience”.

Adding to Geraldine’s experience as a seasoned retailer, makeup artist Jane recognised what that the products would resonate with the younger demographic while “keeping the cost reasonable and the quality high”.

The face of Inglot Cosmetics, Jane now hosts brand roadshows and events, while running a makeup blog which has become successful on social media in its own right.

Related: All You Need to Know About Running a Spa, Beauty & Hair Salon Franchise UK (Health & Beauty Franchises UK)

Twelve months ago, the company broke into the international market with their first UK store in Newcastle, adding to the 15 makeup bars across Ireland, in addition to the online store.

Inglot Ireland’s expansion drive continued throughout the year, with a collaboration with reality tv show Love Island contestant Kaz Crossley helping the brand stay “relevant” with its target market.

“Our London store has only opened and it’s already proving a hit; we see it becoming the flagship UK store for us,” she told

“As for expansion in Ireland, we’re looking at wholesale, working with pharmacies. We didn’t look at this initially but we want to see how we can grow as quickly as possible. It’s not possible for a shop every time because of the investment required.

“One thing with business, we have to be really open minded; the industry is changing and we need to constantly up our game”.

Jane believes that now the brand is so well established, it allows more freedom for experimentation with the business: “we’re not afraid of doing that; at least take a look and try it out”.

With online sales a significant portion on the company revenue, the two sites – UK and Ireland – will be monitored over the next year so that the merging of the two runs as seamlessly as possible.

Inglot Ireland has also upped the ante in terms of what makeup courses that it offers at its academy. The newly ITEC accredited makeup artistry courses are available on a full and part time basis in Dublin, Galway and in Cork from early 2019.

“It’s not as easy to be be unique anymore, to be ahead of the pack as there is a lot more competition out there these days. We are ten years in business next year; we have expanded so quickly but we have to continually be thinking outside of the box.”

Source: Independent

Chick-fil-A is the fast-food chain of the year, and things are only getting better

December 30, 2018

It is a little bit scary how well Chick-fil-A did in 2018.

The chicken chain is set to become the third-largest restaurant by sales by the end of this year, according to Kalinowski Equity Research. Doing so would mean catapulting up from No. 7, past competitors like Taco Bell, Subway, and Wendy’s.

To do so, Chick-fil-A’s system sales would need to grow the 12% to 15% that analyst Mark Kalinowski has predicted. That’s a massive figure, as most fast-food competitors would be thrilled to hit 8% growth in a year. Domino’s is the only chain that is even close, estimated to grow sales roughly 12% in 2018.

Chick-fil-A franchise

The past few years have seen Chick-fil-A go from a Southern cult favorite to one of the most dominant chains in America.

The chain is entering new markets at an unprecedented clip, including opening its first store outside the US. It is doing a delivery push. It rolled out a new app. New items are popping up on the menu. The chain even tested a meal kit this year.

Related: Food Franchises – Find one in our Franchise Directory

Chick-fil-A is a private company, but according to industry estimates, things have never been better at the chain. The chain is still the most profitable fast-food chain in the country on a per-unit basis, with a single Chick-fil-A making an average of $4.1 million in annual sales, according to QSR Magazine. By comparison, the average unit volume at a KFC location is $1.2 million.

Yet some high-profile cases throughout 2018 hinted at the fact that, while Chick-fil-A is dominant, it could face some demons in 2019 that it has been able to dodge so far.

Chick-fil-A franchise

The chain has continued to experience backlash because of its perceived stance on LGBTQ rights.

A college in New Jersey banned Chick-fil-A as a dining-hall option. The chain’s expansion in Toronto sparked boycotts. And, Twitter CEO Jack Dorsey was slammed in June for eating Chick-fil-A during Pride Month.

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

“Chick-fil-A is a restaurant company focused on food, service and hospitality, and our restaurants and licensed locations on college campuses welcome everyone,” Chick-fil-A said in a statement in November, after Rider University excluded the chain as a dining-hall option. “We have no policy of discrimination against any group, and we do not have a political or social agenda.”

Then, there are questions as to whether it can continue to maintain quality as the chain grows. Much of Chick-fil-A’s power is tied to its impeccable customer service and unique franchise model, which limits how many locations each franchisee can run. Often, as chains expand, they lose the control over the quality that made them beloved .

However, these potential issues haven’t hurt Chick-fil-A’s sales yet.

Maybe in 2019 Chick-fil-A will need to confront backlash and over-expansion fears head on. But in 2018 the chicken chain was dominating the industry.

Source: Business Insider

This is when Burger King in Cheltenham is set to open

December 29, 2018

It’s a question all Burger King fans in Cheltenham have been asking – when will its new restaurant be open?

The fast food chain is revamping a unit in High Street, between Specsavers and David Clulow, and has teased the public with a sign in the window. It says ‘When is burger king opening in Cheltenham’ with ‘MUST BE SOON’ written underneath.

Gloucestershire Live asked Burger King when the shop would open but it was not able to tell us.

Earlier this month, it said: “All of the restaurants are operated and owned by independent franchisees so unfortunately we do not yet know when the Cheltenham store will be opening, but we will get back to you as soon as the franchise have confirmed an opening date.”

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Now though, a worker at the site has indicated when the site will be open to the public.

He told our reporter it would be in February.

So that is something for Whopper fans to look forward to as we head into 2019.

Burger King had been at another site in High Street, close to the Regent Arcade, until it closed three years ago.

Source: Gloucestershire Live

Business Awards: Couple forecasting growth across both businesses for 2019

December 29, 2018

Husband-and-wife Tony and Stephenie Altham have a gift for helping other businesses. As owners of AdGiftsOnline and the BNI Staffordshire franchise, the Newcastle couple support scores of companies – from large banks and Bentley Motors to micro-businesses and one-man bands.

Founded 28 years ago, AdGiftsOnline supplies promotional and corporate gifts to businesses across the UK, including advent calendars and USB sticks to golf balls and bone china mugs.

While BNI Staffordshire is a networking and business support company which boasts more than 200 members across eight groups.

Now, to celebrate growth across both businesses over the last 12 months, the couple have entered The Sentinel Business Awards in the Entrepreneur of the Year category, sponsored by APT Health and Safety Training Ltd.

Pictured is Tony and Stephenie Altham - owners of AdGiftsOnline and the BNI Staffordshire franchise.
Pictured is Tony and Stephenie Altham – owners of AdGiftsOnline and the BNI Staffordshire franchise.

Tony said: “We currently have 12 staff split between the two businesses and our forecasts show growth to a 25-strong team over the next five years.

“The gift market is growing and is becoming ever more imaginative in terms of what companies can offer their clients and staff.

“While AdGiftsOnline and BNI Staffordshire appear to be very different companies, there is a strong ethos of supporting other companies running through both – and that is where our main satisfaction comes from.”

Related: Online And Internet Franchise UK – Should You Buy UK Internet Franchises?

He added: “I became a BNI member after we founded AdGiftsOnline and I used the referral marketing system it encourages to grow our business. When the chance became available to buy the franchise for Staffordshire in 2015, we seized the opportunity as we knew it had potential to grow.

“Now several of our chapters are on course to pass more than £2 million each in referrals in the calendar year and we have two Stoke-on-Trent groups with around 50 members each.”

Matthew Dashper-Hughes, managing director of Office Prime Supplies, is a member of BNI.

He said: “Staffordshire BNI offers a structured, well-organised, professional environment with business people who attend regularly so you can build up proper, meaningful relationships. The emphasis is on reciprocity; helping one another.”

Source: StokeonTrent Live

Charity thanks coffee shop for Christmas gift collection

December 28, 2018

A Melksham coffee shop helped to collect more than a hundred Christmas presents for vulnerable and disadvantaged children. The new Starbucks Coffee Franchise outlet in Commerce Way invited customers to pick a card off their Christmas tree and donate a gift for the child whose gender and age appeared on it.

The presents were then wrapped and delivered to local families supported by children’s charity Barnardo’s.

A spokesman for the coffee franchise holder, the Magic Bean Company, said: “This was our first Christmas collection for Barnardo’s in Wiltshire and we were delighted by the response from our customers.”

Related: Coffee Franchise UK – Should You Invest in a Coffee or Coffee Shop Franchise?

Together with their stores in Swindon, the team received more than a hundred presents. Melksham gifts included toys, books, puzzles, vouchers, chocolates, teddies and toiletries.

Barnardo’s regional relationships manager Julie Kemp said: “We’re very grateful for this wonderful support from Magic Bean and their Starbucks staff.

“It was heart-warming to see so many people supporting the appeal and taking the time to choose such thoughtful gifts.”

For further information on fundraising for Barnardo’s, or to arrange your own Christmas collection next year, call Julie on 07933 501175 or email

Related: Hampshire firm celebrates opening of its 60th Starbucks store

Last year Barnardo’s supported more than 300,000 children, young people, parents and carers across the UK.

This includes work with young carers, care-leavers, children affected by child sexual exploitation and abuse, and support for fostering and adoption.

Source: Wiltshire Times

McDonald’s criticised for not paying UK staff extra on Christmas Day

December 28, 2018

McDonald’s has been criticised by pay campaigners for its policy not to give staff more money for working on Christmas Day.

McDonald’s UK does not have a standard hourly wage for staff, with hourly pay ranging between £5.50 and £10 an hour depending on age and experience.

The fast food chain said there is no pay enhancement for employees who work on a bank holiday or Sundays, and that this policy also applies to staff working on Christmas Day.

A spokesman said: “Very few of our restaurants are actually open on Christmas Day, and we do not change our rate of pay.”

There are 1,261 McDonalds branches in the UK, and up to 100 will stay open on Christmas Day. These include branches in Haringey, north London; Small Heath, Birmingham; and Dunstable, Bedfordshire. Matthew Bolton, executive director of Citizens UK, which campaigns for higher wages, said: “It is disappointing that a global food chain that makes billions a year can’t find the extra money for the Christmas Day shift.”

How McDonald’s compares to other restaurants McDonald’s Christmas Day pay policy contrasts starkly with the policies of several other major high-street fast food chains.

A spokesman for Pret A Manger said that, while the majority of its outlets will be closed on Christmas Day, staff will be paid double if they do work. Workers at pub chain JD Wetherspoon will also receive double pay, while staff at the Slug and Lettuce pub chain will be paid time-and-a-half.

There is no legal requirement for UK workers to receive extra pay on bank holidays, and therefore UK workers are not entitled to receive a bonus for working on Christmas Day.

The Bakers, Food and Allied Workers’ Union, which represents workers in the fast food industry and argues all workers should be paid double on Christmas Day, said: “Global corporations like McDonalds who pay no extra for bank holidays or anti-social hours should recognise the sacrifices that their workers are making.”

Related: Fast Food Franchises in the UK – 10 Things Every Would-Be Franchisee Must Know

Rights: Bank Holiday pay While there is no legal requirement for companies to pay staff extra for working a Bank Holiday, workers do have some rights when it comes to negotiating their pay.

The job advice organisation Work-Smart – backed by the TUC – says any extra payment is up to your employer, and must state this in your contract when you agree to take the job.

“If your employer has regularly offered you double pay in the past, such that it has become ‘custom and practice’, and they are now refusing to honour that norm, it could count as a breach of contract,” it said.

If you suspect a breach, WorkSmart recommends consulting your union representative or seeking legal advice. McDonald’s rival, Burger King, did not comment on its Christmas Day pay policy while coffee giants Starbucks and Costa did not respond to requests for comment.

KFC, Nando’s and Caffè Nero do not open any of their UK branches on Christmas Day. McDonald’s UK operates on a franchise model, meaning most of its branches are run by independent owners. A restaurants costs between £400,000 and £800,000 to buy.

Source: iNews

Women and Millennials Help Drive £17bn+ Franchise Sector to Record Levels

December 27, 2018

New research on UK franchising has revealed a business sector operating at record heights, with much of the recent growth driven by female entrepreneurs and the under-30s. There are now nearly 50,000 franchise businesses collectively contributing over £17bn and 710,000 jobs to the country’s economy, according to data from the British Franchise Association (bfa) and NatWest in the 2018 bfa NatWest Franchise Survey.

In the last two years, more than one-quarter of franchisees starting their business were aged 30 or under at launch, and 37% of all newer franchisees are women.

The infographic below highlights some of the key stats.


Pip Wilkins, the bfa’s chief executive, said: “Thanks to franchising, more people are starting their own business and more jobs are being created. These figures show that whatever your background, with the right attitude and ambition you can thrive.

“The rate of female entrepreneurship is well above the national SME average, testament to the franchise community’s drive to empower women into business. We’ve come a long way since 2005, when more than 80% of newcomers were male.

“And the sharp increase in under-30s starting their own business is thanks to the franchise model bridging the gap between experience and ambition. I’m delighted to see so many younger people realising they have a choice between going it alone or being employed.”

Related: How franchising enables the next generation of entrepreneurs

Regional economies have also benefitted from the expanding sector, with economic growth since 2015 of 7% in the North East (to £800m); 18% in Wales (£500m); 11% in Yorkshire (£1bn) and 14% in the East Midlands (£1.2bn).

The data also revealed the continuation of a long-term trend: around 90% of franchisees – who own and operate their business using the brand, systems and support of a larger company – have reported profitability annually for over 20 years running.

Wilkins added: “Franchising now covers a huge range of businesses, from hair care to healthcare, but is still to reach anything like the levels seen in the US for example. With so many younger people now entering the sector, the future is in good hands.”

Source: Digital Journal

Setting Up A Franchise Business – Choosing the Right Business Structure

December 27, 2018

Running your franchise within the right business structure is not just a matter of paperwork – it has the potential to affect your personal life, too. Choosing the right business structure is all about limiting the liability and maintaining control.

Disclaimer: The information in this post does not constitute legal advice. 

Franchising is perhaps the most popular business model, especially among consumer-facing businesses. The UK franchising sector has grown at 10% in the last four years – a period when the national economy struggled to break past the coveted 1.5% mark.

There are multiple reasons to this fascinating growth (and unbounded potential). The most prominent reason is the willingness of successful businesses to open up their operations to outsiders. Franchising allows businesses to expand – at someone else’s expense. On the other hand, it allows franchisees – most of whom are first-time business owners – to leverage a business plan that has been proven to work.

Given this massive appeal, it’s no wonder that more and more people are willing to try their hand at buying franchises. When the business know-how is served in a ready-to-deploy package, it’s easy to forget the basics.

One such basic factor is the business structure. There is widespread confusion among franchisees about which structure best fits the franchising model. In this post, we will try to clear the air by comparing all the options.

Before getting to this point, let’s take a moment to understand the franchisor-franchisee relationship – a vital link (legally, financially as well as professionally) that not a lot of franchisees take into account.

The Franchisor-Franchisee Relationship

When it comes to franchising, there are numerous misconceptions out there that make life difficult for franchisees. It all starts right here, with not knowing exactly what their position is in the whole game.

It’s simple – don’t let anyone complicate this for you.

As a franchisee, you will have a purely contractual professional relationship with the franchisor. You will never ‘work for the franchisor’, nor will you ever be ‘paid by them’. You will generate revenue on your own, through the assistance provided by the franchisor. Depending on the contract you have in place (the Franchise Agreement), you will either pay ongoing royalties or commissions to the franchisor, in addition to all other expense components.

So, it should now be clear that running a franchise business is exactly what it says it is. Of course, you will never have the sort of freedom that comes with setting up your very own business from the scratch, but that’s the price you have to pay to fast-track the growth with the help of the franchisor who can offer a well-oiled, ready-to-roll business plan.

If you haven’t already, we would urge you to go through our free franchising guides. They are an excellent repository of all-things-franchising and are updated on a regular basis.

Recommended: 4 Reasons Why Franchising Is Here to Stay in the UK

What Is The Business Structure? Why Should A Franchise Business Care About It?

The business structure is one of the most fundamental identities attached to any business. In many cases, you’ll see it being referred to as the ‘legal structure’ of the business.

“Almost every major legal and financial development that takes place within a business is dictated by its legal structure. So, there’s every reason for you to be careful – about the present and more so about the future – when framing your business within a particular business structure.”

To give you an idea, here are some things that the business structure has directly impacts:

How You Get Started

Quite a few entrepreneurs are put off by the idea of having to deal with a whole lot of paperwork when starting a new business. To be fair, it can get quite overwhelming – but it pays to get done with it the right way.

The paperwork involved in the process will vary based solely on the business structure you choose to go with. In addition, the permissions, licences and clearances you will require from various authorities will also depend on the business structure.

Raising the Capital

On our UK franchising blog, we regularly talk about how franchisees can raise money to get their business up and running. It’s a difficult enough process to start with – there’s no point in making it even more frustrating by choosing the wrong business structure.

Most lenders will refer to the trading history and credit scores before they decide on your loan applications. What they will refer to will, in this case, be determined by the business structure you choose.

Handling the Profits

There are many ways people choose to get paid from their business activities. Some take a regular, monthly paycheque, and others go for selling their equity. Some go so far as to putting in place elaborate profit-sharing contracts among all the partners.

As you can imagine, the kind of legal control you hold over the company will eventually dictate all these decisions. In other words, the business structure will be the sole factor that will decide how you get paid. Perhaps the most compelling reason to think the decision through!

Dealing with the Taxman

Franchise businesses are often found wanting when it comes to being ‘tax ready’.

Our experience tells us that there’s a common reason behind every such story – the lack of experience in running a business.

If you don’t quite know about the kind of taxes franchises are required to pay, we have it all put together for you in this free UK Franchise Taxation Guide.

The types of taxes your franchise business will need to pay (and the amounts, in most cases) will depend, again, on the business structure you choose. What’s more, your personal taxes will also depend upon how you got paid in the first place (the point we made earlier).

Managing the Liability (Very Important!)

Running a business has its risks – and these aren’t always strictly financial.

Any liability that arises directly from your business operations – legal and financial – will be a direct function of the way the business is set up (i.e. the business structure). If the business, unfortunately, has to face bad debt scenarios, the business structure will decide how the liability is shared. Similarly, if there are any legal proceedings against the business, the business structure will dictate how the ramifications are addressed.

Types of Franchise Business Structures in the UK

There are no systemic distinctions between regular businesses and ‘franchise’ businesses.

So, the types of franchise business structures are the same as those for other businesses. In the UK, there are 4 major types of legal structures for businesses:

1. Sole Trader
2. Partnership
3. Limited Liability Partnership (LLP)
4. Limited Liability Company (Ltd)

We will discuss what these are and what they bring to the mix.

Sole Trader

This is the most common starting point for franchise businesses – and justly so.

Registering a business as a sole trader is the easiest, least expensive, fastest and most straightforward way, especially when you are starting out small. Professionals – especially service providers – have been using this business structure extensively for years. In fact, close to three quarters of businesses in the UK are sole traders.

Being a sole trader allows you to bypass most business hurdles as far as decision making is concerned. You will run the business with 100% control, meaning that you will be free to drive it in any direction you see fit. There will be no partners to discuss the matters with, no boardroom meetings to worry about. You will be able to employ staff, run the business as usual and keep things simple.

What Does Registering As a Sole Trader Mean?

Registering your franchise business as a sole trader simply means that you will be working on your own and for yourself. As mentioned earlier, this does NOT mean you can’t employ staff.

Read more: Registering as a sole trader in the UK.

Advantages of Registering Your Franchise As a Sole Trader

  • There are no lengthy procedures or no cumbersome red tape involved.
  • Registering does not cost you any money.
  • The process is quick – within a week of registering (or thereabouts), you will have your registration details (most importantly, the Unique Tax Reference Number, UTR).
  • Registering a business as a sole trader allows you to register the business name, too.
  • Most business expenses – from phone bills to business travels – will be tax deductible.

Disadvantages of Registering Your Franchise As a Sole Trader

  • The biggest disadvantage is the liability – you and your business will be virtually indistinguishable. You will personally be liable for all the business debts.
  • As an extension of this liability, your personal finances are exposed to business risks. In essence, being a sole trader means you expose your house, your other assets and the wellbeing of your family to all these risks.
  • As a sole trader, you will rarely get any tax benefits of running a successful business or employing people.
  • All business profits will be taxed as income. Being ‘self-employed’, you will need to follow the self-assessment procedures as usual.
  • Raising finances as a sole trader isn’t much different from borrowing money in your personal capacity. So, your personal credit history will always be at the focal point.
  • Even though sole traders can choose business names, these names aren’t available for general public to look up. Two or more sole traders can share the same name.
  • Since you assume the full control of the business, the business can come to a virtual standstill in unfortunate events such as your hospitalisation or death.

When Should You Register Your Franchise Business As a Sole Trader?

You should consider registering your franchise business as a sole trader when and if:

  • You are starting out with little capital and don’t expect to raise heavy loans any time soon.
  • You want to get your franchise business up and running quickly.
  • You are comfortable with the liability that comes with this option.
  • You want to retain the full control of the business.

Recommended: Thinking of Buying a Franchise? Make All the Right Decisions With franchise4u’s Free Franchise Checklist.

Business Partnership

A business partnership is an extension of the sole trader business structure.

Essentially, it’s a business structure where multiple sole traders assume the charge with the liability being shared between them.

A good example of this is a business run by a husband and wife. They can both register as ‘self-employed’ and form a business partnership with unlimited liability without much paperwork.

What Does Forming a Business Partnership Mean?

Registering your franchise business as a business partnership means that you put together a framework that decides the level of control, authority and profit sharing between multiple partners. Needless to say, you need to be very careful about your business partners. Thanks to the unlimited liability, their actions can hurt your personal and business prospects.

Read more: Forming and registering a business partnership in the UK.

Advantages of Registering Your Franchise Business As a Partnership

  • Like being a sole trader, registering a business partnership is fairly easy and quick.
  • Thanks to multiple partners, the capital raising prospects of your business grow proportionately higher. All partners can help raise finances towards common business goals.
  • Having access to multiple points of view is incredibly helpful – especially if partners bring on board great expertise in various fields.
  • The responsibility of running the franchise can be shared between partners. In one partner’s absence, others can take over without much hassle.

Disadvantages of Registering Your Franchise Business As a Partnership

  • Forming a thoroughly-thought-through partnership agreement is enormously important – a step many new businesses can’t seem to get right.
  • The liability is unlimited, meaning that any and every business debt will be the shared liability of ALL partners.
  • All partners are required to submit individual self-assessments to the HMRC.
  • All shared profits will be taxed as ‘income’.
  • Disagreements, loss of trust and many other ‘rapport’ problems can lead to standoffs that can paralyse business operations.

When Should You Register Your Business As a Partnership?

You should consider forming a business partnership to run your franchise business if and when:

  • You need to raise more capital to start off.
  • You have reliable business partners.
  • You want to eventually grow the business to a ‘company’ level.

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Limited Liability Partnership (LLP)

Just as business partnerships are an extension of the sole trading structure, limited liability partnerships are an extension of partnerships.

LLPs have been enjoying some new-found love from business across the UK, thanks to the combination of flexibility and safety they offer to business owners.

What Does Forming a Limited Liability Partnership (LLP) Mean?

An LLP is formed between multiple business partners the same way as business partnerships are formed. This involves setting up an elaborate partnership agreement that stipulates the profit and responsibility sharing details. Each limited partner is required to register with the HMRC as ‘self-employed’, while the business itself needs to be registered with the Companies House.

The key difference is that within an LLP, the liability of partners is limited (usually to their share of investments in the company).

Read more: Forming and registering a limited liability partnership in the UK.

Advantages of Registering Your Franchise Business As an LLP

  • The most obvious advantage is the limited liability. Partners share the liability that is proportionate to their investments and involvement in the company. This greatly reduces your exposure to debt recoveries and other legal troubles.
  • There is no limit to the number of partners you can have in an LLP.
  • You won’t be (fully) liable for the actions of other partners.
  • LLPs combine the best features of partnerships and corporates.
  • The tax burden lies on individual partners. This can give your business an edge in the long run.

Disadvantages of Registering Your Franchise Business As an LLP

  • All financials are to be submitted to the Companies House. These will be available in the public domain. For a small business, the public disclosure rarely makes much sense.
  • More paperwork, more regulatory control.
  • Like partnerships, LLPs are dissolved when all but one partner decide to exit.
  • To form an LLP, you need to choose a business name that isn’t already taken by other companies.

When Should You Register Your Franchise Business As an LLP?

You should consider choosing a limited liability partnership structure for your franchise business over other options when and if:

  • You plan on bringing on board many partners.
  • You need to raise multiple loans.
  • You need to limit your exposure to legal and financial liabilities. This applies particularly to franchise businesses in high-risk consumer facing categories like pest control.

Read More: Fast Food Franchises Are “Killing It” in the UK. Here’s All You Need to Know About Them.

Limited Liability Company (Ltd)

Since most franchise businesses don’t really go so far as incorporating a limited liability company (private limited company), we’ll keep this segment short.

What Does Incorporating a Limited Liability Company (Ltd) Mean?

Incorporating a limited liability company means registering a ‘full-fledged’ company with the Companies House. Usually, this is a move that best suits medium to large sized businesses with multiple shareholders.

Read more: Incorporating a private limited company.

Advantages of Registering a Business As a Private Limited Company

  • Limited liability (limited by shares)
  • Robust operations
  • Higher capital raising potential
  • More trust and credibility
  • Better tax management

Disadvantages of Registering a Business As a Private Limited Company

  • More expensive
  • High regulation and public disclosure
  • Unsuitable for small businesses

Franchise Business Structures in the UK: The Takeaways

  • Choosing the correct business structure is important to safeguard your personal interests.
  • It can also save you a great deal of hassle and money in the long run. In fact, choosing the wrong business structure is almost always guaranteed to cost you more.
  • The initial costs should never outweigh long term interests.
  • Always consult with an experienced, qualified professional before finalising the business structure.

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