What are the franchise prices in the UK, and how do they vary by business type?

Franchise businesses have become a popular investment option in the UK due to their established business model, brand recognition, and structured support systems. However, the costs associated with purchasing a franchise can vary significantly depending on the type of business. Below is a detailed breakdown of how franchise prices differ by business type in the UK.

1. Food and Beverage Franchises

The food and beverage industry is one of the most lucrative yet competitive franchise sectors. The initial franchise fee, as well as the overall cost of setting up, can vary based on the brand’s popularity, the type of food being sold, and the location of the franchise.

Costs:

Initial Franchise Fee: £10,000 to £50,000
Total Initial Investment: £50,000 to £500,000
Ongoing Royalty Fees: 4% to 8% of revenue
Advertising Fees: 2% to 5% of revenue

Example:

Subway: Initial investment starts around £100,000 to £250,000 for a single-store franchise.
McDonald’s: Costs for a McDonald’s franchise can exceed £500,000, and franchisees also need substantial liquid assets (around £250,000) to qualify.

2. Retail Franchises

Retail franchises typically require less initial capital than food and beverage franchises. However, the investment can still be high due to the cost of stock, store setup, and equipment.

Costs:

Initial Franchise Fee: £5,000 to £30,000
Total Initial Investment: £25,000 to £200,000
Ongoing Royalty Fees: 4% to 6% of revenue
Advertising Fees: 1% to 3% of revenue

Example:

The Range: Franchisees can expect to invest between £100,000 and £200,000 to open a new store.
Shuttercraft: The initial investment for a Shuttercraft franchise can range from £35,000 to £65,000, depending on location and store size.

3. Health and Fitness Franchises

Health and fitness franchises, including gyms and personal training services, have seen increasing demand in recent years. The costs for setting up in this sector can vary widely depending on the type of fitness model (e.g., boutique gym vs. large-scale fitness centre).

Costs:

Initial Franchise Fee: £15,000 to £70,000
Total Initial Investment: £50,000 to £500,000
Ongoing Royalty Fees: 5% to 10% of revenue
Advertising Fees: 2% to 3% of revenue

Example:

F45 Training: Initial costs to open an F45 Training franchise range from £100,000 to £300,000.
Anytime Fitness: Franchise fees are typically between £30,000 to £50,000, with a total investment of £250,000 to £500,000.

4. Cleaning and Maintenance Franchises

Cleaning and maintenance franchises typically have lower initial investments compared to other sectors, making them an appealing choice for new entrepreneurs. This sector includes both residential and commercial cleaning services.

Costs:

Initial Franchise Fee: £5,000 to £20,000
Total Initial Investment: £10,000 to £50,000
Ongoing Royalty Fees: 5% to 8% of revenue
Advertising Fees: 1% to 3% of revenue

Example:

The Cleaning Doctor: The initial investment for this franchise is around £15,000 to £30,000.
Maid2Clean: Franchisees can expect to invest £10,000 to £20,000 to start a Maid2Clean business.

5. Automotive Franchises

The automotive sector in the UK has several opportunities for franchising, including car repair, detailing, and car rental services. These franchises tend to require a higher initial investment due to the specialized equipment and locations required.

Costs:

Initial Franchise Fee: £10,000 to £50,000
Total Initial Investment: £50,000 to £200,000
Ongoing Royalty Fees: 5% to 8% of revenue
Advertising Fees: 1% to 2% of revenue

Example:

ECO Express Car Wash: The franchise fee typically ranges from £20,000 to £40,000, with an overall investment of £50,000 to £100,000.
Revive!: Initial investment for an automotive repair franchise like Revive! can be between £30,000 and £75,000.

6. Educational and Childcare Franchises

This sector includes tutoring services, early learning, and childcare facilities. Due to the increasing demand for educational services, franchises in this area can be quite profitable. However, these businesses often require a larger upfront investment due to the facilities and equipment needed.

Costs:

Initial Franchise Fee: £10,000 to £30,000
Total Initial Investment: £50,000 to £150,000
Ongoing Royalty Fees: 4% to 8% of revenue
Advertising Fees: 1% to 2% of revenue

Example:

Kumon: Franchise fees for Kumon typically range from £1,000 to £3,000, with total costs for starting the business around £15,000 to £25,000.
Monkey Puzzle Day Nurseries: The initial franchise fee can be between £20,000 and £30,000, and total investment ranges from £100,000 to £300,000.

7. Technology and Digital Franchises

Technology and digital services are an emerging sector in the UK franchise market. These can range from IT support services to digital marketing agencies and software development companies.

Costs:

Initial Franchise Fee: £5,000 to £20,000
Total Initial Investment: £10,000 to £50,000
Ongoing Royalty Fees: 4% to 7% of revenue
Advertising Fees: 1% to 2% of revenue

Example:

Techie’s Franchise: The initial investment for a technology franchise is around £15,000 to £35,000, with an overall investment of up to £50,000.
Computershare: This type of franchise typically has a low entry cost starting from £5,000, with a total investment between £20,000 to £60,000.

8. Home-Based Franchises

Home-based franchises are increasingly popular, as they offer the flexibility to work from home, which lowers the overhead costs compared to other franchise types. These businesses can cover a variety of sectors, from health and fitness to consulting services.

Costs:

Initial Franchise Fee: £1,000 to £10,000
Total Initial Investment: £2,000 to £30,000
Ongoing Royalty Fees: 4% to 7% of revenue
Advertising Fees: 1% to 3% of revenue

Example:

Franchise Local: A home-based franchise that can start for as little as £10,000.
Home Instead Senior Care: This can cost between £60,000 and £100,000, but it’s a more flexible, home-based model.

Disclaimer

No guarantee of accuracy. Franchise costs are subject to change and can vary depending on the specific franchise agreement, location, and market conditions at the time of investment. Always consult with a professional franchise advisor or the franchise brand directly for the most accurate and up-to-date information.