Napoleon once described England as “the nation of shopkeepers”, which, looking at the vibrant franchise industry, still holds true today.
There are more than 48,000 franchise businesses currently operating across the UK, which is twice the amount that was around a quarter of a century ago. They’re profitable, too, with 90% of franchisees stating that they are turning a profit. It’s no wonder that 33% of franchisees own two or more businesses. Such is the growth potential of this tried-and-tested business model.
That’s all according to the British Franchise Association (BFA) and NatWest’s most recent Franchise Survey report, which is the go-to resource for UK industry statistics.
So, the facts make it clear: if you’re looking to run your own business, a franchise is a safe and steady bet. But what are the most successful franchises in the UK? We have listed them below, including franchises that have the highest number of franchisees to showcase the networks that have robust, sustainable business models. These franchises not only continue to grow, but have stood the test of time, too.
Subway
Subway is one of the most popular franchises in the world, with around 2,500 stores in the UK. Its ubiquity doesn’t mean that the brand hands out franchises liberally, though. Becoming a Subway franchisee involves a thorough selection process, with prospective business owners needing to demonstrate that they are willing to follow Subway’s proven system.
The individual will need to have significant financial backing, too. The total investment for a Subway franchise in the UK starts at £180,000. This includes the franchise fee, which is currently £13,000 for new franchise agreements in the UK and Ireland. Prospective franchisees need to demonstrate a net worth of £150,000 and have £100,000 in liquid assets.
Ongoing costs to be aware of are a 12.5% royalty fee – which is made up of 8% on gross sales and 4.5% on advertising – and equipment and supplies costs, property costs and legal and accounting fees.
In return for your investment, Subway franchisees can earn a yearly gross profit of £35,000, with some franchisees generating up to £300,000 in annual revenue. These figures can vary greatly depending on location, market conditions and operational efficiency.
Subway also provides extensive training programmes, site selection and lease negotiation assistance, marketing support and materials, ongoing support from field consultants and franchise support staff, access to the University of Subway e-learning system and a comprehensive operations manual.
McDonald’s
McDonald’s is the first brand that comes to most people’s minds when they think about franchising. The fast-food giant has 1,300 restaurants in the UK and its goal is to have 95% of them operating by franchisees.
Becoming a McDonald’s franchisee entails going through a rigorous selection process, though. This typically takes around three to six months, including attending an Open Day, multiple interviews, restaurant work and extensive training – and that’s even before being offered a restaurant.
Prospective franchisees will need around £500,000 to £1.85 million for an initial investment as well, which includes the franchise fee and equipment costs. Prospective franchisees must have a minimum of £125,000 in unencumbered funds, which represents around 25% of the total investment. The remaining 75% can be financed through bank loans – McDonald’s has relationships with major brands and can help franchisees access these funds.
Despite the meticulous selection process and quite hefty initial outlay, it’s easy to see why so many people want to operate a McDonald’s franchise. A typical McDonald’s franchise in the UK generates annual sales of £2 million to £5.8 million. After the first year of operation, franchisees can expect to earn between £50,000 and £550,000. Return on investment over a 20-year term is estimated to be between 20% and 25%.
Dream Doors
Kitchen makeover company Dream Doors has grown to become one of the UK’s biggest brands in its sector. The company – now backed by home service behemoth company Neighborly – has around 100 showrooms across the UK and is looking to grow further with 20 or so new territories available.
It is becoming known as one of the best UK kitchen franchises to own due to the success many of its franchisees are currently experiencing. 16 Dream Doors franchises sold £1 million or more in 2023, with the highest performing branch selling £1.6 million worth of items.
The brand highlights individuals who are motivated and comfortable in a sales or managerial role are best equipped to be franchisees. Interested parties will need approximately £35,000 in liquid start-up capital – additional funding is available – making it one of this list’s most affordable franchises to invest in.
Anytime Fitness
Anytime Fitness is a rapidly growing fitness franchise in the UK, offering a 24/7 gym model. The company is currently experiencing strong results, seeing an 8.3% increase in revenue in Q1 2024, compared to the same period in 2023, along with a 4% increase in average member yield. It currently has 185 clubs in operation across the UK and Ireland and boasts over 200,000 members.
The total investment for an Anytime Fitness franchise ranges from £400,000 to £600,000, which includes a franchise fee of £36,000. Prospective franchisees must have a minimum personal investment of £170,000.
In return, Anytime Fitness franchisees receive assistance with site selection and property negotiations, a three-day training course, ongoing support from Franchise Performance Coaches, access to an internal training dashboard and a dedicated eLearning portal for staff development.
Costa Coffee
If you’re on the go and in need of a caffeine boost, one of the first coffee brands that will undoubtedly come to mind is Costa Coffee. That’s because the company has grown to become the largest coffee chain in the country, with over 3,400 outlets in the UK – and 2,467 of them are franchise units.
The one caveat for interested entrepreneurs is that the company is not currently offering franchise licenses in the UK. However, it is looking to grow its footprint on the international stage.
Lucky investors that have franchises currently are stated to make substantial returns. While individual profit figures aren’t available, the company did turnover £1.1 billion in 2022.
The total investment required ranges from £250,000 to £800,000, with a minimum personal investment of £250,000. The initial franchise fee varies depending on location and specific market conditions.
Domino’s Pizza
Domino’s Pizza is a well-established franchise network in the UK with over 1,200 franchised stores. It also offers a lucrative franchise opportunity with strong brand recognition and comprehensive support. However, it requires a significant initial investment and a rigorous selection process.
The total initial investment ranges from £280,000 to £350,000. This includes a franchise fee, equipment and inventory costs. Prospective franchisees must have a minimum of £120,000 in liquid funds.
While those costs may seem steep, the rewards in return can make it worthwhile. Domino’s franchisees generate sales of £14,000 per week, and one in three franchisees own a business worth £1 million or more.
Domino’s has a thorough franchisee selection process, which can take nine to 16 months from selection to store opening. It is also focusing on its “Homegrown Heroes” programme, which aims to find franchisees from within the company’s workforce.
KFC
With over 900 outlets in the UK – 95% of which are franchised – KFC is one of the most renowned franchise brands in operation today. Recognised for its “finger lickin’ good” fried chicken, the company offers budding business owners the option of standalone restaurants, food court outlets and drive-thru locations to invest in. The company expects franchisees to open multiple outlets.
To get in on the act, entrepreneurs need to pay an upfront franchisee fee of approximately £38,000 to £42,000. The total investment range, however, is £1.2 million to £2.5 million, and investors are expected to have minimum assets of £5 million and liquid capital of £2 million.
Annual revenue is between £50,000 and £100,000, with potential for higher earnings for well-run franchises.
Pizza Hut
Pizza Hut offers a franchise opportunity that budding business owners are eager to grab a slice of. The company has over 650 restaurants and delivery units currently operating in the UK and is aiming to expand the delivery side of the business from 300 to over 700 stores in the coming years.
To meet its bold growth ambitions, Pizza Hut is looking for franchisees who can open five to 10 locations within a two to three-year period. Candidates will also need to have experience in the restaurant industry and at least £130,000 to £150,000 in liquid funds. The total investment required to open a Pizza Hut franchise is approximately £1 million.
Burger King
Another fast-food favourite on British highstreets, it’s no surprise that global icon Burger King also appears on this list. With 533 restaurants in the UK, and around half of them being operated by sub-franchisees, the brand is the third most recognised quick-service brand in the UK.
The application process to become a Burger King franchisee generally takes around 12 months – from initial contact to first store opening – and the brand is currently on the lookout for investors willing to open multiple locations.
The initial investment required to open a franchise in the UK ranges from £250,000 to £800,000, and prospective franchisees should have at least £250,000 in liquid capital to invest.
ChipsAway
ChipsAway is a recognised as the largest automotive repair franchise network in operation in the UK, with over 200 franchisees. Many find it an enticing investment prospect due to its low-cost entry – total investment is around £29,995 + VAT, but prospective franchisees only need £15,000 + VAT in liquid funds to get started. Other appealing aspect is its flexible working model and potential for expansion.
Due to being backed by parent company Franchise Brands, franchisees benefit from an average of over £150,000 worth of repair leads respectively per year. ChipsAway franchisees are also provided an initial four-week technical training, ongoing business support, advanced training, operational support and financial assistance for expansion and access to the network of fellow franchisees for advice and support.
Helpful FAQs
What is the most profitable franchise in the UK?
Major fast-food brands like McDonald’s, KFC and Domino’s are among the most profitable franchises to own in the UK, but it can be tricky to invest. McDonald’s is notoriously stringent and thorough with its recruitment process. Cleaning services like Molly Maid and Fantastic Services are also popular choices.
What is the easiest franchise to open?
Home- and van-based franchises are renowned for being simple, business-in-a-box concepts that have minimal barriers to entry. This is because you operate them from your own premises or vehicle, meaning there are low overhead costs.
How can I invest in a franchise?
You first need to determine your budget – the style or type of franchises available to you will be dictated by the amount of money you have to spend on purchasing a franchise. Do your research, going through helpful guides and insights articles, then contact the franchises that interest you most. Make sure to contact a franchise lawyer to run through the franchise disclosure documents once you’ve received them.
Why are franchises so successful?
Established brand name, marketing power, proven business model, economies of scale and comprehensive training and support are just some of the reasons why franchise businesses are often considered a safer bet than starting an independent business.
What is the average salary of a franchise owner in the UK?
The salaries of franchisees in the UK can fluctuate wildly due to the different formats of franchises out there. For example, Indeed states that the average salary of a UK franchisee is £85,000, whereas TotalJobs says £35,000. The most standard answer is £50,000.