The cost of a franchise | How much does it cost to own a franchise? (2024)

Investing in this concept has many benefits, but it's essential that you understand what the average costs are, what commitments you assume as a franchisee and what benefits you can expect in the short and medium term.

There are many questions, aren't there?

But don't worry, there's always an ally to help you out (us, obviously).

We've gathered all the information you need in order to know once and for all how much a franchise costs.

So take out a piece of paper, a pencil and a calculator to find out how much the investment that will lead you to financial freedom will cost you.

Elements to take into account when buying a franchise

There are several elements to evaluate before investing in a franchise project. Before making the decision, it's essential to look at the numbers carefully so that this alternative is truly the vehicle that will lead you to your dreams.

Let's look at some of these points together:

1. Research

The first thing to do is to research the opportunities in the market. The best thing to do is to go to specialised franchise sites to find out which companies offer you the opportunity to invest in them.

Take a look at the biggest ones, look at their numbers, sales history, board of directors, estimated investment amount....

Once you have done this you can move on to the next step.

2. Know the market

It's also important to keep an eye on the market in general. Evaluate which niches are most in demand in the country and what the characteristics of the customers are.

The UK is characterised by many high-level companies, so users are used to high-quality products. However, the daily stress and hectic pace of life has diminished the quality of life for many people.

Focus on products that are on trend and have a sustained demand over time and you will see the money pouring into your pockets.

3. Get advice

It's important that you seek advice from companies that know the franchise market so that they can recommend the best alternative for you.

Nowadays, there are companies that are in charge of franchising businesses, but they also provide advice to prospects like you who want to buy their first business.

Find out which one is available and ask all the questions that come to mind.

4. Premises and operating expenses

When evaluating a franchise, you need to keep an eye on the size of the premises as it will be essential to operate. It's true that not all models are retail, but in most cases you will need an operations centre.

In this regard, ask yourself the following questions:

What features should the premises have?
Estimated size.
Regular staff to maintain the location.
Estimated operating costs.

Once you have the answers, you will know whether or not it's a good opportunity for you.

3. Terms of the contract

A franchise is a business in which a contract is signed between two parties that involves duties and rights for both. Therefore, before you begin it's essential that you take all the time you need to read this document.

Check the clauses and the small print, as this is where the most important parts are usually to be found. In this sense, investigate the payment times, royalties, entry fees and advertising payments.

4. Estimated profitability

It's true that profitability depends on many factors, but a reputable company will give you projections of how long it will take you to get your working capital back if you do what they tell you to do.

It's important that you study the market to see if these deadlines are really met or if they are pure fantasy. This will be a key factor in making your final decision.

How much does a franchise cost in the UK?

Have you already decided to buy a franchise in the UK? Then the following list will help you choose the best one for you.

Let's see which are the best alternatives you have at the moment:

1. Angela’s Swim School

First we start with Angela's Swimming School, which is owned by Angela Wilson, a former professional swimmer who represented the country in many competitions.

Once she retired she decided to take her passion to the business world and what better way to teach the youngest children how to train in the most complete sport of all.

The academy has been running for more than 10 years and gives swimming lessons to people of all ages, regardless of their abilities.

What catches our attention is that its founder offers a 300% return in three months. Therefore, if you are a lover of this sport you should take a look at the following numbers:

22.000 euros minimum investment.
50.000 euros total investment.

2. Auntie Annes

Can you imagine investing in the world's largest soft pretzel chain? Well now you can, because Anne Beiler developed the product in Pennsylvania and expanded it to multiple countries including the UK.

They are currently enjoying a good time thanks to a new breakfast bun menu that they are offering throughout the region. They offer you numbers like:

135.000 euros total investment.
18.000 euros franchise fee.

3. Bagel Corner

It's a quick service restaurant that emerged in 2010 in the city of Bagel.

They now have up to 30 shops across the market, proving that they have a time-tested business model. Part of the key to their success lies in their menu, which offers everything: salads, soups and bagels.

In addition, their system is so fast that they can dispatch an order in up to 70 seconds, a strength that the competition has not yet been able to replicate.

500.000 euros minimum investment.
15.000 euros franchise fee.
5% royalty.

4. Baguette Express

If you're a lover of healthy food, it's time to pay attention to the offer they have for you. This is a business that was founded in 2009 and has become one of the most important players in the market.

You will love the fact that they offer fresh and healthy dishes at a very good price. In addition, they give the customer the possibility to make their own sandwich, so you should come and have a proper meal.

The total investment is 60.000 euros.
7% royalty rate.

5. Baskin Robbins

Did you know that the ice cream market in the UK is one of the few to exceed £1 billion? It's definitely a niche to pay attention to and nothing better than to do it with Baskin Robbins, one of the current leaders.

It's an international brand that offers different flavours and frozen delicacies to delight the most exquisite of tastes.

They currently have 150 shops in the country and you will be surprised to know that they are growing fast, so you could be the next person to have their own ice cream shop.

If you are thinking of investing, check out the following numbers:

500.000 euros investment.
2% advertising fee.

6. Bella Italia

Is there anyone who doesn't get excited about eating pasta or pizza? Italian food is definitely one of the most popular and loved cuisines in the world and now you can turn this passion into a cost-effective business.

Bella Italia is a brand that has been spreading the best of Italy all over the old continent for 40 years. Each location is characterised by attentive and friendly staff who make you feel at home.

Currently, they have up to 100 different restaurants and all of them have De Cecco pasta, which is their own brand of spaghetti.

The numbers are as follows:

700.000 euros estimated investment.
25.000 euro franchise fee.
6% royalty fee of the net sales of the business.

7. Café Rouge

Café Rouge has a competitive advantage that catches the attention of any investor. It's the only French brand of casual dining restaurants with a presence in the UK.

They currently have up to 90 different restaurants and they serve up to six million meals a year. Their menu is so varied that they offer everything from bistro cuisine, wine and coffee in beautifully designed venues.

If you long to go back to Paris you must visit this restaurant, it will be like having a little piece of France all in one place.

Do the maths based on the following numbers:

700.000 euros investment.
25.000 euros franchise fee.
6% royalty on the net sales of the business.

8. Cavavin

We continue with French products and now we go to the wine sector. Cavavin has been founded several years ago and gives you the opportunity to be one of its franchisees to sell its wines and spirits through a differentiating concept.

At the moment they have an inventory of up to 2,000 liquors from associated winemakers who offer a quality product at a very low price.

If you want to invest, bear in mind the following numbers:

70.000 euros total investment.
16.500 euros franchise fee
Royalties of 2.5%.
Average turnover in 24 months: 260.000 euros.

9. Cinnabon

No matter what country in the world you're in, we're sure that at some point you have tried Cinnabon.

It's a father and son business that decided to create the best cinnamon roll in the world. The first shop opened in Seattle and gradually expanded to other cities and nations.

Later, the corporation was sold for more than 30 million euros and became what we know today. So, if you are passionate about the sector you should take a look at the only financial requirement:

Minimum investment of 1.400.000 euros.

3 Reasons to buy a franchise

Still not sure if investing in a franchise is an ideal alternative for you? Let's take a look at some of the reasons why you should consider it:

1. The business is already set up

It was impossible to start any other way: franchising offers you an assembled, turnkey business. This means that you don't have to inject resources into setting up the structure, creating the logistics or building the brand because a third party did it for you.

What you have to do is follow the guidelines of the mother company, sign the contract and let them guide you in each of the trainings they give you. With a little patience you will see how the numbers start to come in.

2. It's a supporting brand

The most important thing is not the infrastructure provided by the franchise, but the brand behind it.

That intangible element is what keeps everything on its feet even in the darkest of times. By making the cash injection, you are investing in a brand that has the backing of the entire market. Make the most of it.

3. Expected returns

There's nothing better than investing knowing that in an estimated time, you will have your money back along with a profit. Serious franchises give you projections of when you should get your investment back if everything goes according to plan.

Yes, we know, there's no such thing as a safe investment in the business world, but it's true that there are alternatives that give you a better chance of making a profit.

So, if you don't want the headaches and the stress of starting a business from scratch, start researching franchise costs to fulfil your dream of owning your own business.