BusinessesForSale.com and The Franchise Exhibitions conducted a joint survey, where 335 entrepreneurs offered their perceptions on franchising.
These viewpoints provide useful insights that potential franchise investors can reflect on and apply to their buying journey.
Finding a Better Quality of Life Through Franchising
Most survey respondents are young entrepreneurs, aged between 25 and 44. Taking the lead, 35% of respondents are aged between 25 – 34 and 32% are aged between 35 – 44.
This could indicate that young adults are looking for ways to control their futures without investing in high-risk opportunities or starting their own businesses from scratch.
The pandemic and cost of living concerns have refocused attention on achieving financial stability, particularly amongst a younger generation who are looking for comparatively low-risk ways to improve their quality of life.
Franchising is an attractive option for both first-time entrepreneurs and those looking to expand, with 37% of respondents currently employed and 36% existing business owners.
Investing in a franchise offers an established system with lower failure rates. Nearly 60% of start-ups fail in the first three years, and according to Beauhurst, 54.2% of the companies they assessed became stagnant within 5 years, and only 23% scaled successfully.
With a franchise, investors benefit from an established brand, a tried-and-tested business model and the ongoing support of the franchisor and wider network, helping to avoid some of the pitfalls of a start-up business.
With 75% of respondents agreeing that being a franchise owner has more advantages than disadvantages, it’s clear that those who are researching their investment options find franchising an attractive proposition based on the concept’s advantages.
What Makes a Franchise Brand Attractive to Entrepreneurs?
Entrepreneurs still expect certain standards and conditions in return for their investment. The following areas are what respondents perceive to be worth their investment:
- 57% of entrepreneurs believe a franchisor’s commitment to helping them succeed is crucial.
- 53% of entrepreneurs are looking for effective marketing strategies, and 49% are looking for ongoing training and support.
- 48% of entrepreneurs believe a franchise should have a commitment to environmental, corporate, and social responsibility.
- Finally, 47% of entrepreneurs are looking for a franchise with growth potential.
The Biggest Hindrances to Commitment
Investing in a franchise is a crucial decision, and entrepreneurs are transparent about their concerns. Data from the survey revealed that several areas hinder their commitment to investing:
- 48% of entrepreneurs find additional costs and commitments an obstacle. To manage these expectations, franchise investors should ask as many questions as possible before making a choice. Many franchisors have close relationships with funding providers, and will provide assistance with business plans, lease negotiations and supplier contracts to ease these pressures.
- 42% of investors are still looking for the right franchise brand. When searching for a franchise, entrepreneurs should consider their goals, finances, and skills in the first instance. BusinessesForSale.com works with various franchise brands, offering entrepreneurs the opportunity to find the right franchise to invest in.
Pinpointing ‘The One’
Before investing in a franchise, completing your due diligence is essential. Lots of information can be found online or in industry publications, but there’s no substitute for personally meeting the people you’ll be working alongside.
70% of entrepreneurs want to meet franchisors face-to-face before they make a decision. Likewise, 58% of entrepreneurs indicate that speaking to existing franchisees is important to them. The Franchise Exhibitions offer entrepreneurs the opportunity to network with franchisors, franchisees, and a whole community of industry experts under one roof.
Ready to Find The Right Franchise?
BusinessesForSale.com works with over 700 franchise brands across various UK regions. From food to education, these franchise brands offer something unique. Whether you’re looking for guaranteed ROI, a specific lifestyle, or you’re just exploring your options, you can find a franchise on BusinessesForSale.com.
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