Why buying a franchise, rather than starting a new business from scratch, could be a wise financial decision

In a world where starting up your own business is relatively easy, why do some people choose to buy a franchised ‘business in a box’, instead of going it alone?

CE of the BFA (British Franchise Association), Pip Wilkins, explains how the franchising model operates.

Franchise training
Fundamentally, when you invest in a franchise, you are paying for the training, support and the use of a brand. Over the years the franchisor will have made all the mistakes, ironed out the model so that it’s perfectly packaged, ready for you to get trained up, step in and go. All BFA members have their franchise model checked rigorously to ensure it is fair for all, although we do recommend you take legal advice from a franchise specialist solicitor before signing the franchise agreement.

20% of new businesses failed in the UK in 2023
Did you know that last year, 20% of all new businesses in the UK failed? Set that against the figures from our last survey in 2018, which revealed that less than 1% of new franchises closed because of commercial failure and you’ll begin to see why franchising is such a popular option. Investing in a franchise is without doubt a safer way of starting a business due to the training and support offered.

Tried and tested franchise model
Essentially, franchises are built on repeatable business models. As the franchisee, all you need to do, is to learn, follow and repeat. Whether that is selling burgers, washing vehicles, running a recruitment agency or a pet care company, the basic requirements are the same. Everything has been laid out for you in the model, you just have to follow it. 

If you would like to know more about owning a franchise after leaving the Forces, please visit our website: www.thebfa.org.uk to see details of our 300+ franchisors, whose business models have been assessed and found to meet our strict criteria for ethical, professional and sustainable franchising.

Selecting the right franchise…
Captain Mark Coldham Served as a Troop Commander with the 5th Regiment Royal Artillery from 2005 to 2011, including Operations in Iraq and Afghanistan with weapon locating radar, before working at the Army Training Centre (ATC) Pirbright, training recruits. 

Mark and his wife, Rachel, also ex-Military, own a franchise with ‘The Massage Company’ based in High Wycombe, that they launched in 2019.

What attracted you to buying a franchise? 
As ex-Military officers who had both transitioned into project and programme management, my wife Rachel and I figured we had the skills to run a successful business but didn’t know what kind to run. 

Franchising allows you to take on the challenge of running a business, but with the business model already created and ready to go. If successful, you can grow it or diversify into different models. The support of the wider franchise network gives you a wealth of advice and you can learn from like-minded businesses. Having managed our business through Covid, I can certainly vouch that this shared experience can be extremely valuable.

How did you find your franchise?
I was looking for a contract role at the time and saw a job advert which seemed intriguing. Rachel and I had been talking about starting a business but hadn’t considered franchising. I gave the franchisors a call, and it all went from there.

How did you know it was the right franchise for you?
We conducted a lot of due diligence, went for discovery sessions and asked questions to challenge the model and plans for the business. We had wanted to open a business in health and wellbeing as we know that the industry is growing, but having both been injured during our time in the Military, we knew the value of massage and wanted to help make it more mainstream.

How did you finance your purchase?
We had accrued a bit of capital, but we were also financed by a bank for a portion of the start-up costs.

What are some of the best things about being a franchisee?
It is good to be part of a wider network of business owners with the same challenges. It enables you to share the burden when times are tough, and to collectively strive for the betterment of the business. 

Why do Veterans make great franchisees?
Veterans are a ready-made package of organisational ability, professionalism, leadership, operational understanding, and a host of other qualities that are a direct correlation to business ownership.

What advice would you give to someone about to leave the Forces who’s thinking of buying a franchise?
Do plenty of due diligence. Scratch beneath the surface and ask the searching questions. Also, ensure you have some contingency in case things don’t go to plan. Clearly, everybody hopes that nothing like Covid will come up again, but although we got through the other side, it was a tough slog. Also, if you have a partner or family, ensure you are all collectively on board with the decision you’re making; it will be a collective journey.

Thanks to the British Franchise Association for their help with this article.
Visit: www.thebfa.org.uk