Franchise businesses are where you pay to use an established brand’s name, business model, and other resources. Think McDonald’s, Costa Coffee, Subway, and other household names. Unsurprisingly, it’s a popular option because it gives you a solid foundation and support to build yourself off.
Today, the UK franchise sector is worth an estimated £19 billion to the economy, illustrating how successful this model has been over the years. If you’re ready to find the latest franchise companies for sale, browse our latest Cogogo listings to uncover your next golden opportunity now.
Why invest in a franchise business?
The point of a franchise is to offer a low-risk pathway to business ownership. Rather than trying to build yourself up from scratch, you’re taking advantage of a proven model and brand. It’s why today’s franchises employ over 700,000 people across the country.
So, why should you invest in a franchise?
- Much lower risk of failure.
- Instant brand recognition among the British public.
- Access to comprehensive support and training.
- Easier time obtaining financing because banks see them as less risky.
- Proven business model giving you a clear roadmap to success.
Essentially, this is all about business independence with support. Yes, you will be paying a portion of your profits in fees, but for many first-time entrepreneurs, this is a small price to pay for the extra support and rewards of self-employment.
Buy a Franchise Business Today
Finding franchise businesses for sale online
Franchises can be found online with a quick search. Unlike non-franchise businesses, you’re not relying on being able to tap an established business network to uncover opportunities. If you’re ready to find a franchise company for sale, here are your options:
- Dedicated business marketplaces and directories, including Cogogo.
- Directly via a brand’s franchise platform.
- Business brokers who can connect you with franchise opportunities matching your parameters.
The correct method for you depends on the nature of the franchise and business model. Get in touch with a business valuation expert specialising in franchise businesses for an independent valuation. Consulting a professional ensures you’re not overpaying and you’ve truly found the right deal for you.
Valuing individual franchise businesses
Franchises already have inherent value because of the parent brand, but that doesn’t mean every franchise is successful because of that. Key drivers contributing to growth and profitability are still factored into the calculations.
Typically, valuation methods will focus on:
- Earnings multiples.
- Comparable sales with similar franchise resales.
- Discounted Cash Flow (DCF) to project future cash flows.
- Asset-based valuations focus on tangible and intangible assets minus your liabilities.
The correct method for you depends on the nature of the franchise and business model. Get in touch with a business valuation expert specialising in franchise businesses for an independent valuation. Consulting a professional ensures you’re not overpaying and you’ve truly found the right deal for you.
Franchise vs. independent businesses for sale
What’s the difference between buying into a franchise and purchasing an independent business?
Primarily, the main difference is the level of support. Franchises will provide you with training, materials, and a proven route to success. You may also get access to a franchise network, where you can build contacts, exchange information, and get confidential advice. In terms of an independent business, you’re on your own.
The upside of buying into an independent business, though, is that your profit ceiling is far higher. You’re not paying regular fees or a portion of your profits to the parent company, meaning that if you succeed, the sky truly is the limit.
However, franchises are great options if you’re new to entrepreneurship and need that extra support. If you’re interested in UK franchises for sale, contact Cogogo and speak to one of our experts.
