There are multiple different Types of Franchises.

Here we discuss some of the most common types of Franchise businesses in the UK, how they differ and what each brings to the table.

types of franchises

Buying Your First Franchise?

Buying a franchise can be a great way to kick-start your journey in the world of business. In many ways, buying a franchise can help you solve business riddles that running your own business will take years to tackle. This is one of the reasons why franchising has become the go-to way for successful businesses to grow, expand and make more money. On the other hand, local businesses can use the power of franchising to register consistent profits without huge investments or cash outlays – but with so many different types of franchises, which is right for you?

Choosing the right franchise opportunity is the key to running a successful franchise. With such a large variety of low-cost franchise opportunities available, it is, however, very difficult to decide.

To help you make a more informed decision in this regard, franchise4u has classified the franchise businesses in the UK in a handful of broad categories.

Note: Please note that this classification is based on the nature of the businesses in question.


Types of Franchises

Retail Franchises

Retail franchises make up for a significant share of the overall franchising business in the UK. The very idea of franchising can be traced back to the expansion strategies employed by popular retailers.

While big-box retailers in the UK have drifted off the franchise model of business, many leading clothing, fashion, sports and medicine retailers rely heavily on their successful franchise networks. Retail franchises typically operate on the High Street and are largely dependent on the power of the brand involved. Compared to other types, retail franchising is a type of franchises requiring the franchisees to invest larger working capital in the form of personnel, inventory and advertising.

Restaurant Franchises

Restaurant franchises are just as popular as retail franchises in the UK. Restaurant businesses are some of the easiest to replicate businesses, provided that the market demand is healthy in a given location. It is, therefore, no surprise that many restaurant businesses choose to go the franchising way. To get started with a restaurant franchise, the initial working capital required is typically on the higher side. Having prior experience in running or managing a restaurant can also go a long way in helping your franchise thrive.

Premise-Based Franchises

Premise-based franchises, even though less common, can be quite profitable. If you own or have access to a commercial premise or facility, you can utilise it to house, store or operate a franchise business. The advantages of running a premise-based franchise involve lesser overheads and larger profit margins. Common examples of premise-based franchises include warehouse franchises, shipping franchises, product assembly franchises etc.

Office-Based Franchises

Office-based franchises aim to maximise the franchisor’s operations in a particular town, city or district through a franchised office. Although the idea seems peculiar, many businesses have started using office-based franchises as a part of their ‘domestic outsourcing’ programs to reduce administrative overheads. The franchisee has to acquire (purchase or lease) suitable office space to house the local operations of the franchisor and absorb the administrative costs such as staff salaries and utilities.

Services-Based Franchises

In recent years, services-based franchises have managed to gain considerable popularity. If you are looking for a low-cost franchise opportunity, this, perhaps, is the best place for you to start your search. From common, everyday services such as house maintenance, laundry and landscaping to niche services such as tutoring and consulting, many services have been successfully franchised by established franchisors. It’s worth noting that franchisors prefer potential franchisees who have prior experience in their areas of operation.

Home-Based Franchises

Working from home can be a tempting proposition for many. While it’s easier said than done, it’s certainly possible to supplement your income with a steady home-based franchise. Work from home franchise opportunities make themselves available across a wide range of businesses – from administrative help to creative arts.

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