How much money can I make owning a Franchise?

How much can I make from franchising? 

The answer to this question depends on many contributing factors, higher investment franchises usually yield a higher return, McDonalds are priced at around £250,000 for the franchise, but you will see big returns (if the proven model is followed correctly). The drive of the individual is key too, you need to be able to follow the proven model and avoid going off track and taking risks. Franchising is supposed to be the less riskier option…. It is important to note that lower investment franchises such as work from home opportunities do present high profit margins as outgoings are minimalised.
There are a vast number of people who do not appreciate the size or scale of Franchising within the UK. And yet it has such an impact on our daily lives. 

To emphasise the point, here’s a snapshot of the current franchising scene:

  • There are over 44,000 franchise outlets in the UK
  • 600,000 people are employed in franchising in the UK
  • Franchising contributes over £15 billion to the UK economy
  • Just under 1,000 Franchises in operation (as of 2015)
  • 45% of franchise business witnesses a turnover more than £500,000 PA 
  • Only 3% of Franchised businesses witnessed a turnover below £50,000 PA

Franchising is a huge part of the UK, and we’re not just talking about the £15 billion it contributes to the economy. Everywhere you look on the high street there’s a recognisable brand such as; 

- Subway (44,000+ units)
- McDonald’s (32,000+ units)
- Kumon (26,000+ units)
- KFC (16,000+ units)
- Europcar (13,000+ units)
- Pizza Hut (13,000+ units)
- Burger King (12,000+ units)
- Dunkin’ Donuts (10,000+ units)


It’s difficult to avoid a franchise, the office you work in will have cleaners from a franchise, the vending machine you purchase snacks from will be supplied by a franchise, the coffee you purchase on your break will be supplied by a franchise, the restaurant you eat out at in the evening will be a franchise and so on. Franchising is everywhere, and there’s no surprise that 97% of franchisees are reporting in profitability. There’s money to be made in this sector, and there’s plenty of the pie left to go around. Franchising is a much safer option compared with a start up business, you have a model that has proven it works and more importantly has a track record of making profit! As a franchisee, you’re never by yourself, the support and training provided by the franchisor ensures that you’re fully equipped to make the most out of your franchise venture. On top of this, you’ll also have the support and backing from existing franchisees to help you. By purchasing a franchise you’ll have the ability to generate your own income, rather than a fixed salary like a typical employee. This will vary depending on how much time you put into the business, the sector, your overheads, the franchisor fee, and other costs. However, one of the leading advantages of owning a franchise is that you’ll have a high degree of control over how much you earn, as this will reflect how much time and effort you put into the business.

Key factors to consider when analysing how much money you can earn through franchising;

• How much time are you willing to spend working?
Some franchises are extremely flexible and offer the opportunity to work Seasonal, part time, or full time. Earnings will be dictated by how much time you’re willing to invest within the business.

• Utilise your existing Skillset & Experience
All franchises offer an extensive franchise training course and ongoing franchise support, but you should consider that it may take longer to adjust if you choose a sector or industry that’s completely new. This could impact potential earnings to begin with.

• Analyse all potential overheads
It’s key to look over all potential overheads that may be incurred through your franchise operation, Rent, Supplies, Staff, Vehicle, Accountancy fees etc as these will all impact your eventual profit.

Enjoy your time as a franchisee, you’ve become your own boss and you’re effectively in charge of your own destiny. Feed off other successful franchisees within the network, quiz them on what works best for them and any advice and guidance to help maximise performance for your franchise.

0 comments