What are the best small franchise businesses to start in the UK?

Starting a franchise in the UK can be a profitable venture, especially when you choose the right business. Many small franchise businesses offer excellent opportunities, whether you’re looking for a low investment or a niche market. Below is a list of some of the best small franchise businesses to start in the UK, including estimated costs, potential returns, and other key details.

1. Subway

Franchise Type: Fast Food (Sandwich Shop)
Initial Investment: £85,000 – £100,000
Royalty Fees: 8% of gross sales
Average Annual Revenue: £250,000 – £350,000
Details: Subway is one of the most recognizable sandwich chains in the world. With a low entry cost compared to other fast-food franchises, Subway offers a great opportunity for those new to franchising. The brand’s flexible store format means you can operate from various locations such as high streets, shopping malls, and airports.

2. The Cleaning Guys

Franchise Type: Cleaning Services
Initial Investment: £10,000 – £15,000
Royalty Fees: 10% of gross sales
Average Annual Revenue: £70,000 – £100,000
Details: The Cleaning Guys franchise is an affordable option for people interested in the cleaning industry. The franchise focuses on both residential and commercial cleaning services. The relatively low investment requirement makes it an excellent entry-level franchise, with great potential for scaling.

3. Popcorn Kitchen

Franchise Type: Food and Beverage (Popcorn Snacks)
Initial Investment: £30,000 – £50,000
Royalty Fees: 6% of gross sales
Average Annual Revenue: £100,000 – £200,000
Details: Popcorn Kitchen offers a unique business model focusing on gourmet popcorn. Their products are sold through various retail outlets, kiosks, and online. It’s an exciting franchise opportunity for food lovers and those seeking a business with a fun, niche product.

4. Costa Coffee

Franchise Type: Coffee Shop
Initial Investment: £250,000 – £350,000
Royalty Fees: 6% of turnover
Average Annual Revenue: £500,000 – £1 million
Details: Costa Coffee is one of the UK’s largest coffee shop chains, with a reputation for quality coffee. Although the initial investment is on the higher side, Costa has a proven track record and a strong customer base, which can provide a reliable source of income.

5. Ladbrokes Coral

Franchise Type: Betting and Gambling
Initial Investment: £50,000 – £75,000
Royalty Fees: 8% of gross sales
Average Annual Revenue: £300,000 – £500,000
Details: As one of the UK’s largest betting and gaming companies, Ladbrokes Coral offers an opportunity in the gambling industry. The brand is established and has a loyal customer base. The business model also includes sports betting, gaming machines, and online operations.

6. Baguette Express

Franchise Type: Fast Casual Dining (Sandwiches & Snacks)
Initial Investment: £50,000 – £75,000
Royalty Fees: 6% of sales
Average Annual Revenue: £200,000 – £300,000
Details: Baguette Express offers a delicious menu of freshly made sandwiches, soups, and snacks. Their affordable investment option makes it a viable choice for new franchise owners. They provide excellent support and a strong marketing network to help grow your business.

7. Jamaica Blue

Franchise Type: Coffee Shop & Café
Initial Investment: £150,000 – £200,000
Royalty Fees: 6% of gross sales
Average Annual Revenue: £400,000 – £600,000
Details: Jamaica Blue brings the flavors of the Caribbean to the UK with an appealing menu of coffee, breakfast, lunch, and desserts. The brand’s vibrant and casual atmosphere attracts a wide customer base. Their established system offers ongoing support and training.

8. Tutor Doctor

Franchise Type: Education & Tutoring
Initial Investment: £30,000 – £45,000
Royalty Fees: 15% of gross sales
Average Annual Revenue: £80,000 – £150,000
Details: Tutor Doctor is a popular education franchise that offers personalized tutoring services to students of all ages. The brand operates through a home-based model, allowing you to manage the business remotely. The tutoring industry has seen significant growth, making this a great franchise opportunity.

9. No Letting Go

Franchise Type: Property Services (Inventory Management)
Initial Investment: £20,000 – £30,000
Royalty Fees: 10% of turnover
Average Annual Revenue: £50,000 – £80,000
Details: No Letting Go specializes in property inventory management services, a crucial function for landlords and estate agents. This franchise offers an opportunity to tap into the growing UK property market with low startup costs.

10. Maid2Clean

Franchise Type: Cleaning Services (Domestic & Commercial)
Initial Investment: £4,000 – £6,000
Royalty Fees: 10% of monthly turnover
Average Annual Revenue: £30,000 – £50,000
Details: Maid2Clean offers domestic and commercial cleaning services. The low initial investment makes it ideal for anyone looking to start a business with minimal capital. Franchisees benefit from flexible working hours and the growing demand for cleaning services in residential and commercial markets.

Key Considerations Before Starting a Franchise:

Initial Investment: The cost to buy into a franchise can vary widely, from a few thousand pounds for service-based businesses to several hundred thousand for retail locations. Always ensure you have enough capital to cover the franchise fee, equipment, inventory, and working capital for the first few months.
Royalty Fees: Most franchises charge a royalty fee based on a percentage of your sales. These can range from 5% to 10% but should be considered when calculating your potential profits.
Support and Training: Franchises typically offer training, marketing support, and a proven business model, which can increase your chances of success. Check the level of support offered to ensure it aligns with your needs.
Market Research: Understand the local market conditions, competition, and customer demand before making a decision. This will help you choose a franchise that has growth potential in your area.

Disclaimer: This content is for informational purposes only. There is no guarantee of accuracy, and the financial figures and details provided are subject to change. Always conduct thorough research and seek professional advice before investing in a franchise.