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Why Investing in a Franchise in 2024 is a Smart Business Move
In today’s unpredictable economy, starting a business from scratch can be daunting. However, franchising continues to be an attractive option for those seeking financial independence with a structured support system. Recent data from the British Franchise Association (BFA) and insights from Elite Franchise Magazine’s “Franchising Facts in 2024” showcase why franchising is a low-risk, high-reward path for aspiring entrepreneurs. Below, we explore the key advantages of franchising in 2024, making it an ideal time to invest in a business with a proven model.
The Success Rate: A Key Advantage
According to the BFA’s 2024 survey, the franchise sector in the UK has maintained an impressively low forced churn rate, with less than 2% of franchises closing due to business failure. This means that over 99% of franchises succeed, a stark contrast to the roughly 50% of independent startups that fail within the first five years. The support, training, and established brand recognition provided by franchisors contribute significantly to this high success rate, making franchising a safer investment.
Economic Resilience and Contribution
The BFA report highlights that the franchise sector contributed £19.1 billion to the UK economy, up from £17.2 billion in 2018—a 12% increase despite the economic turbulence brought on by the pandemic and Brexit. This resilience demonstrates that franchising can withstand challenging economic times, giving investors a stable foundation to build upon.
Consistent Revenue Across Sectors
Franchise units in the UK generate an average turnover close to £400,000, with profitability rates of 89%. This consistency is evident across various franchise sectors, such as personal services, property services, and hospitality. Franchises like Haus Maids, which operate within the property services sector, offer a compelling opportunity to invest in a thriving industry that combines high demand with strong support systems.
High Employment and Multi-Unit Ownership Growth
The franchise sector is also a significant contributor to UK employment, providing jobs for over 770,000 people, with over half of these being full-time positions. Multi-unit ownership is becoming more popular, with around 35% of franchisees managing multiple locations. This trend underscores the strength and profitability of the franchise model, as franchisees continue to reinvest and expand within their brands.
A Diverse and Inclusive Sector
Franchising is increasingly attracting a diverse range of entrepreneurs. Women now make up 40% of franchise owners, a significant rise from 20% in 2005. This trend, particularly strong in sectors like personal services, highlights franchising as a flexible and appealing option for female entrepreneurs. Additionally, the BFA report shows a continued focus on diversity and inclusion (D&I) across franchise businesses, making the sector more welcoming and representative.
Accessible Investment with Varied Startup Costs
Startup costs for franchises in the UK are highly accessible, with more than 60% of franchisors offering opportunities under £50,000. The average startup cost has risen to £85,000, reflecting the varied investment options available within franchising. Whether you’re looking for a modest entry point or are prepared for a larger commitment, franchising provides options suited to different budgets and goals.
Strong Franchisee-Franchisor Relationships
Elite Franchise Magazine’s 2024 analysis emphasises the strength of franchisee-franchisor relationships, with over 85% of franchisees maintaining regular communication with their franchisors. Monthly check-ins are the norm, while around 28% communicate with their franchisors daily. This close-knit support structure, coupled with extensive training, operational guidance, and marketing support, is a primary factor contributing to the high satisfaction and success rates in franchising.
Stability in a Changing World
The BFA report shows that the franchise sector is highly adaptable to changes in the market, including the impacts of COVID-19. While 28% of franchisees reported trading conditions remained unchanged post-pandemic, an impressive 87% of franchisors are optimistic about business growth in the coming year. This outlook reflects confidence in the franchise model as a robust and reliable path to success.
Why Now is the Right Time to Invest in a Franchise
With 99.5% of franchises succeeding and independent startups facing a 50% failure rate, investing in a franchise is a safer and smarter path for aspiring business owners. The franchise sector’s resilience, consistent profitability, accessible investment costs, and supportive relationships make it an ideal choice for those seeking entrepreneurial freedom with minimized risk.
As Haus Maids continues to expand, our franchise model offers an excellent opportunity to join a reliable, growing business. For those interested in becoming part of the thriving UK franchise sector, now is the time to make a secure, informed investment in your future.
