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Are Franchises Even Worth Considering

Are Franchises Even Worth Considering?

Tuesday, 08 April 2025

Are Franchises Even Worth Considering

Franchising is often seen as a shortcut to business ownership, but is it really the best route?

If you’ve ever thought about running your own business, you’ve probably weighed the risks—uncertain profits, fierce competition, and the challenge of building a brand from scratch. That’s where franchising offers a compelling alternative.

In the UK, 89% of franchisees report profitability, and the sector contributes £19.1 billion to the economy. 

Compare that to the 50% failure rate of independent start-ups within three years, and it’s easy to see why many aspiring entrepreneurs, career changers, and investors look to franchising as a lower-risk entry into business ownership.

At Pack & Send, we’ve helped countless franchisees take control of their future with our proven business model. 

But before deciding if franchising is right for you, it’s essential to understand what it takes to succeed.

This guide walks you through the three key stages of franchising: preparation, approval, and understanding terms, all designed to move you from considering a franchise to making an informed decision.

Preparation, Are You Ready to Own a Franchise?

Owning a franchise is not just about investing money, it’s about committing to a proven system and putting in the work to make it successful. 

The first step is to assess your own strengths and goals.

If you enjoy structure, following a tested model, and want a clear roadmap to success, a franchise could be a perfect fit. However, if you prefer full creative control and experimenting with new business ideas, an independent start-up may be a better option.

Once you’ve clarified your goals, the next step is to research the franchise industry. Some industries are thriving, while others are highly competitive. Sectors like logistics and shipping have seen major growth, driven by the rise of eCommerce. 

Investigating which franchises are performing well, reading franchisee reviews, and attending franchise discovery days can provide first-hand insights into the business reality. 

Speaking with existing franchisees is one of the best ways to understand what you’re getting into—many franchisors encourage prospective franchisees to do this before applying.

After researching industries, the next step is financial preparation. Most franchises require an initial franchise fee plus setup costs for equipment, inventory, and marketing.

pack and send Edinburgh East

At Pack & Send, the total investment typically ranges from £75,000–£95,000, yet some of our top-performing centres generate revenues approaching £800,000 per year. 

Ensuring you have at least 30% of the total investment in liquid funds will not only make the approval process smoother but also help you secure financing if needed. Many UK banks have dedicated franchise loan programs, making it easier to fund a business with a proven model.

The final part of preparation is seeking professional advice. A franchise agreement is a legally binding contract, so consulting with a franchise solicitor before signing is essential. They can review the terms, highlight any potential red flags, and ensure you understand your financial obligations. 

Additionally, working with an accountant can help assess the profitability of the franchise based on real financial data from existing franchisees. Preparing in advance, with expert guidance, ensures that you are fully ready to take the next step in the franchising journey.

Approval, How to Get Accepted by a Franchisor

Unlike independent businesses, you can’t just buy and start running a franchise. Franchisors have a selection process to ensure franchisees are the right fit for their brand.

The first step is to build a strong application. 

Most franchisors look for candidates with management, sales, or customer service experience—but you don’t need to be an expert in the industry. At Pack & Send, we prioritise business-minded individuals with strong communication skills rather than logistics experience. Highlighting your customer service, leadership, or business management experience in the application can make a significant difference.

If your application is successful, the next step is an interview or Discovery Day. Franchisors want to know that you’re serious, financially prepared, and understand the business model.

pack and send discovery day

Going into the meeting, prepare answers to common questions about your long-term business goals, financial position, and why you chose this particular franchise. Additionally, prepare questions for the franchisor—asking about successful franchisee traits, training programs, and support structures shows initiative and helps you assess whether the franchise is right for you.

As the process moves forward, franchisors will review your financial readiness. Having clear bank statements, proof of capital, and pre-approval for financing (if applicable) can speed up the process. If leasing a premises is required, researching suitable locations in advance demonstrates that you are thinking ahead and ready to launch.

Finally, the approval process is a two-way evaluation. While the franchisor assesses your suitability, you should be evaluating them too. Are they transparent about earnings? Do they encourage speaking with existing franchisees? A good franchisor should be as selective about choosing franchisees as you are about choosing a franchise ensuring a mutually beneficial partnership.

Understanding Franchise Terms, What You’re Signing Up For

Before signing a franchise agreement, understand exactly what you are committing to.

One of the biggest costs to consider is the franchise fees and royalties. The initial franchise fee grants you the right to operate under the brand and receive training. 

In addition, ongoing royalties—typically a percentage of revenue—help fund continued franchisor support. Some franchises charge up to 20% in royalties, but at Pack & Send, our model ensures franchisees keep more of their revenue while benefiting from full franchisor support.

The length of the contract is another key consideration. 

Most franchise agreements last between 5 to 10 years, with renewal options. Before signing, check whether renewals are automatic and if there are additional fees involved. Many franchises require franchisees to meet certain performance benchmarks to qualify for renewal, so reviewing these expectations beforehand is crucial.

Training and support are what set franchises apart from independent businesses. At Pack & Send, we provide full initial training, marketing support, and an expert mentor during launch. Additionally, we match franchisee marketing spend up to £6,000 in the first year, ensuring a strong start. 

When evaluating a franchise, confirm what support is provided beyond the launch phase—some franchisors provide ongoing sales training, lead generation support, or business coaching, while others offer minimal involvement post-launch.

Lastly, understand any territory restrictions or non-compete clauses in the contract. A franchise should give you exclusive rights to a territory to prevent excessive competition within the brand. Non-compete clauses, meanwhile, may restrict your ability to start a similar business if you leave the franchise. Clarifying these points upfront prevents surprises down the line.

Why Pack & Send A Franchise Model That Works

Why Pack & Send? A Franchise Model That Works

At Pack & Send, we offer a unique logistics and shipping franchise with multiple revenue streams. Unlike standard courier services, we specialise in high-value, fragile, and custom shipments, serving customers that traditional couriers cannot.

  • High Demand, Low Competition: Our service model attracts business clients, collectors, and international shippers.
  • High Margins: Our specialist service means larger transaction sizes than standard courier franchises.
  • Comprehensive Support: We provide full training, marketing assistance, and operational guidance to help franchisees succeed.

With Pack & Send, franchisees are in business for themselves—but never by themselves.

So, Are Franchises Worth It?

The numbers say yes—but only if you choose the right franchise. A franchise provides a proven model, brand recognition, and higher success rates than independent businesses. However, success still depends on your commitment, financial readiness, and ability to execute the system.

If you’re ready to explore a franchise with strong profit potential, market demand, and full support, Pack & Send might be the right fit.

Pack & Send Franchise Opportunities

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