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Best Retail Franchises For UK Franchisees
It’s a well-known fact that the retail sector is ever-so-hungry for capital. You need to keep investing money regularly while the business grows, and the returns may not always present themselves fast enough.
Quite naturally, individual investors prefer to stay away from getting into this sector. That, however, isn’t the case with retail franchises. Franchisees can buy ready-to-trade franchise units, bypassing the groundwork. Much the reason why, there now exist hundreds of retail franchise opportunities, covering nearly every industry in existence. In turn, it becomes important for franchisees to choose carefully. On this page, you’ll find our selection of some of the most promising retail franchise opportunities in the UK.
Retail Franchises Help You Solve The Investment Puzzle
Inexperienced business owners usually fail to grasp the enormity of work that needs to be put into the building of a successful consumer-facing business. It’s never as easy as renting a high-street location and hoping for the best. Retail franchises help investors solve this puzzle by handing them the advantages of branding, scale and reputation.
The UK retail sector is massive – it generates over £360 bn each year in revenue. By combining the franchisor’s business model with your experience and skills, you can turn your retail franchise into a profitable venture that can consistently claim its fair share of the retail pie.
How Much Do Retail Franchise Opportunities Cost?
It’s very difficult to zero in on the investment range for retail franchise because there’s unparalleled diversity of options to deal with.
A small to mid-sized retail franchise requires an initial investment of £25,000 to £40,000. Larger and more established franchises require you to invest over £100,000 upfront. Up to 50% of the initial working capital can be raised via franchise finance.
Territory And Location
Not all retail franchise opportunities are made equal. The territory you want to claim and the location you want to operate from will always be the decisive factors. Therefore, it’s important that you factor these in while conducting your market research and franchisor due diligence.
What Do Franchisors Expect From You?
Most retail franchisors will require you to have at least a basic understanding of the industry and some experience at managerial/administrative level. Apart from that, you will need to have good communication skills, ability to lead your team and foresight to reinvest wisely.
Retail franchises can take up to 24 months to break even, although smaller franchises tend to break even within the first year of trading.