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If you’re thinking about investing in a franchise, there are a number of factors which may have enticed you to reach this point:

– The freedom of being your own boss without the stress and uncertainty of launching your own start up.

– The ability to “hit the ground running” with an existing brand and build success quickly.

– The comparatively low cost of getting started compared to starting a business.

– The flexibility of working for yourself…

No matter what has drawn you to want to learn more about franchising, however, there is one question which every prospective franchisee wants an answer to:

Are franchises worth it?”

Do franchise owners make good money?

Are franchises profitable?

These are the most fundamental questions all aspiring franchisees mull over and seek answers to. The problem is: it’s not that simple…

From business models, to franchise locations and franchisee experience, a huge number of considerations will affect the profitability and “worth it”-ness of a franchise.

What constitutes “worth it” is also a grey area: Is the ability to earn a living as your own boss “worth it”? Or do you require a certain take home slice financially to consider franchising a viable professional next step?

In this article we’ll delve into a few of these issues to help you weigh up the pros and cons and gain a few insights.

How much can I make?

Safe with money

First things first, let’s talk cold, hard cash.

Before we consider how much franchisees can stand to make in numerical terms, it’s important to underscore that business profits are not the same as personal income. Before you can pay yourself, you may need to cover costs like:

– Franchise fees

– Employee wages

– Loan payments

– Business reinvestment

– Tax

So, are franchises profitable?

The short answer here is yes.

If you’ve been careful with your franchise selection, trust your franchisor, have seen the model prove successful in practice for other franchisees and have the experience to operate the business well, you can make money. 

The good news is that, in the UK, franchise profitability is on the rise. According to the bfa’s (British Franchise Association) latest franchising survey in conjunction with NatWest, 97% of franchising units reported profitability in 2015, with the franchising industry as a whole now contributing £15.1bn to the UK economy (up 46% since 2005).

Other factors you should consider to maximise your profits include the following:

  • Location

    Every location is different, with different levels of foot traffic, visibility and suitability for an area’s demographic. Your location can have an impact on your success, particularly how quickly you can build custom in a new area, which will affect profits.

  • Business models

    The way the franchise you invest in is run will also impact your profitability. Different franchising models exist which can affect how much franchisees pay and/or are able to learn. Some will take a flat fee, others a percentage cut, some like Tubz Brands just a one off payment.

  • Business type

    From Zeitgeist-capturing “trendy” franchises which fall out of fashion in a couple of years, to steady businesses which see a steady stream of custom over the longer term, the type of franchise you choose to invest in will affect its profitability.

  • Your experience

    Do you know how to manage money? What about managing people? And managing marketing? Many franchisees go on a steep learning curve when they embark on their franchising journey, but the more you know, the faster you can start making your new business as profitable as possible.

How much do franchises make?

Large Pile of Cash Money From Creative Bug Perspective. Euro Banknotes.

The answer to this question again depends on the type of franchise you’re talking about. In very broad, general terms, 2015 saw average franchise turnover rise. Half of all UK franchisee-owned businesses claimed to make over £250,000 in the same year.

Of the 97% of franchisee-owned businesses in profit, 56% claimed to be either “quite” or “very” profitable.

Equally revealing is the fact that ownership change in franchise-owned businesses is incredibly low, far below the number of startup failures.

Just 4.6% of franchisees left their position in 2015, indicating that profitability is very possible and is, most likely, “worth it” for the majority of individuals who go into franchising.

Although it’s hard to give an exact answer to the question of how much you stand to personally make (based on the broad range of business types in the franchising industry), it’s clear that the majority of those who take on a franchise do profit and consider their professional move to be worth it.

Tubz Brands have laid out some information on how much you could earn based on their different business bundles on this page. Of course this is an estimate but based on real data and the experience of many successful operatives.

If you want to find out more about the stories of current Tubz franchisees, take a look at some testimonials or case studies and success stories.

And if you want to find out about whether franchising could be worth it for you, contact our team today via: or 01795 414 480.

Image courtesy AMC.