So you’re thinking about owning a franchise? Maybe you’re unhappy with the 9-to-5 routine, dreaming of being your own boss, or looking for an investment that might actually pay off better than your pension. So, is owning a franchise actually a good idea?

It’s a brilliant question. And like most brilliant questions, the answer isn’t a simple yes or no. Let’s look at the good, the challenging, and everything in between.

What You’re Really Investing In

First off, let’s clear up what a franchise actually is. You’re not just buying a business; you’re buying someone else’s successful formula, their brand recognition, and their ongoing support.

Think about it like this: when you buy a franchise, you skip those messy first few years of business where everyone makes expensive mistakes. You’re paying for a shortcut.

The franchise gives you their playbook, their methods, their systems, and their marketing materials. You follow it, and in theory, you get similar results to other successful franchisees.

Why Franchising Works – And Keeps Growing

Let’s look at why franchising has become so popular across the UK.

According to the British Franchise Association (BFA), the UK franchise sector has grown to 50,421 units in 2024, contributing £19.1 billion to the economy. Those aren’t small numbers. So what’s the appeal?

Lower Risk Than Starting From Scratch

When you launch your own independent business, you’re testing everything from scratch. Your brand? Unproven. Your business model? Untested. Your marketing? A shot in the dark.

With a franchise, someone’s already done the trial and error. They’ve worked out which adverts pull in customers, which products sell best, and which operating procedures actually work. 

The stats back this up, too. The commercial failure rate for UK franchises has decreased from 0.9% in 2018 to just 0.5% in 2024, indicating that fewer than 1% of franchises fail annually. In contrast, approximately 50% of independent businesses fail within their first three years. That’s a pretty compelling difference.

Built-In Support Network

Running your own business can be lonely. With a franchise, you’ve got people to call when you’re stuck.

Most franchisors offer training, a comprehensive operations manual, marketing support, and regular check-ins. The good ones offer mentoring, regional meetings with other franchisees, and annual conferences where you can share ideas and challenges.

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Instant Brand Recognition

Starting from zero means nobody knows who you are. With a franchise, you could be open on Monday with customers walking in on Tuesday because they already know and trust the brand.

That instant credibility is worth its weight in gold, especially in competitive markets like food, retail, or services.

Is It Right for YOU? The Questions to Ask Yourself

So let’s bring this back to you. Is owning a franchise a good idea for YOU specifically? Here are the questions you should be asking yourself:

Are You a Rule-Follower or a Rule-Breaker?

Franchise systems work because people follow them. If you’re the type who’s always thinking “I know a better way,” franchising might not be the one for you.

What’s Your Financial Situation?

Franchises require capital, not just for the franchise fee but for working capital until you’re profitable. Some banks are willing to lend, but you’ll still need a decent amount of your own money in the game.

Consider these costs carefully:

• The initial franchise fee
• Equipment, stock, and shop fittings
• Staff costs before revenue covers them
• Your own living expenses while the business grows

If losing this investment would be financially devastating for you, proceed with extreme caution.

How Much Industry Experience Do You Have?

One of the beauties of franchising is that you don’t necessarily need experience in the industry. The franchisor teaches you their methods.

However, some understanding of the sector definitely helps you evaluate whether the franchise opportunity is realistic. If you’ve never worked in food service, for instance, you might not recognise whether a restaurant franchise’s projected numbers make sense.

Doing Your Homework: Essential Research Before You Commit

If you’re still keen on the franchise route, here’s how to separate the good opportunities from the not-so-great ones:

Talk to Existing Franchisees 

The franchisor can put you in touch with current franchisees. 

Ask to speak with:

• • Someone who’s just started out
  • Someone who’s been in the system 2-3 years
  • Someone who’s been running their franchise for 5+ years
  • Someone who’s in a similar geographic or demographic area to your target location

And ask tough questions: What’s the hardest part of running this franchise? How long did it take you to break even? What support did you get when things got difficult? Would you buy this franchise again, knowing what you know now?

Understand the Total Investment

The franchise fee is just one component of your investment. Get clear on ALL the costs:

• Initial fee
• Equipment and fit-out
• Initial stock or inventory
• Staff training
• Legal fees for reviewing the franchise agreement
• Working capital requirements

Then add 20% as a buffer, because unexpected costs always crop up.

Check the Financials – Yours and Theirs

Review the franchisor’s financial health. A struggling franchisor might not be around to support you in a few years.

Also, do a detailed cash flow projection for your own business. When will you break even? How much can you realistically take out of the business as salary or dividends? What happens if sales are 30% less than projected?

The Best of Both Worlds? Finding the Right Balance

For many people, the ideal franchise strikes a balance: enough structure and support to reduce risk, but enough autonomy to feel like you’re genuinely building something of your own.

So, is owning a franchise a good idea? It can be an excellent idea if:

• You want to run your own business, but appreciate having systems and support
• You’ve found a franchise with a genuine track record of franchisee success
• You’ve done thorough due diligence, and the numbers stack up
• You’re comfortable with the balance of independence versus following the system
• You have adequate financial resources to get through the startup phase

It’s probably not a good idea if:

• You’re fiercely independent and hate following other people’s rules
• You’re looking for a completely passive investment
• You don’t have enough capital to comfortably cover the startup phase
• You’ve fallen in love with the concept, but haven’t done a  proper financial analysis

Like many big life decisions, success in franchising comes down to a combination of choosing the right opportunity and being the right person for that opportunity.

Curious whether ROOMS® could be the right fit for you? Get in touch to request our free information pack and start exploring what it really means to build your own business, backed by a proven brand and a support team that’s with you every step of the way.