Franchising lets you open under an established brand, using its recipes, systems, suppliers and marketing in return for an upfront fee, ongoing royalties and often a marketing levy. It can reduce risk because the concept is proven, and banks may lend more readily against a known brand. But you're not truly independent: the franchisor controls the menu, design, prices and suppliers, and you may be bound by restrictive covenants after you leave. The UK has no specific franchise law, so everything depends on the contract, which makes independent legal and financial advice essential.
Speak to existing franchisees, ideally ones the franchisor didn't hand-pick, and ask about real turnover, support and how disputes are handled. The British Franchise Association has a code of ethics, and membership can be a useful signal. Check territory rights, renewal terms, exit fees and what happens if the brand itself gets into trouble.
What we ask on the show
- Is franchising a safer way into hospitality?
- What do franchisees wish they'd known?
- Can a franchise feel personal to guests?
- Who really profits in a franchise?