Guide & Tips on How to Become a Franchisee

If you’re thinking about purchasing a franchise but unsure whether it’s something that you wish to pursue or how to get started, have a read of our guide and tips on how to become a franchisee. We go through the advantages and things to consider before investing in a franchise, what to do before purchasing a franchise, fees to expect and the funding options available. 

What are the Advantages of Franchising?

Taking on a proven concept: You’ll get a ready made business with a proven business model.

Access to Training: The company awarding the franchise will train you on everything that you need to know from products and advertising to managing stock.

Guidance & Support: You’ll have ongoing support and access to marketing, branding and business resources.

Less Risk: With an existing customer base and proven experience in the market, it can be easier to predict profitability and success (there’s no guarantee).

There are 2,300 Costa Coffee units in the UK

Row of Pink Piggy Banks

There are 1,100 franchised McDonalds restuarants in the UK

Things to consider before investing in a franchise

Less Independence: You have to follow an existing model, products, branding and overall control sits with the franchisor. If you’re a true entrepreneur perhaps franchising isn’t for you. 

Hidden Costs: There will be an initial fee to buy the license but there could be additional costs such as service costs. Be aware and check for any additional costs.

A challenge if you wish to sell: If you no longer wish to run the business, the franchisor will need to approve the sale and who purchases the business.

Franchisor could go out of business: If the franchisor goes out of business, you will also have to give up your business.

What to do before purchasing a franchise?


Research into potential franchises and the market that you’re looking to operate in. It’s a good idea to look at market statistics, how well the competition is performing, the overall performance of the market and the location of where your franchise will be.

When you have narrowed down your potential franchise options to invest in, request as much information as possible from the franchisor.

Franchise Exhibitions

Throughout the year there are multiple exhibitions across the UK. Meet and learn about the faces behind the brands while exploring a wide range of franchise opportunities. You will find exhibitors from industries including food and beverage, care, education, fitness plus many more. 

Attend Discovery Days

Franchisors hold Discovery Days for potential franchisees to learn more about the business, the franchise package, explore the opportunities available and ask any questions.

The day may contain a talk from the owner of the franchisor or someone high up, discuss the day to day running of the franchise, an explanation of training and support available and an insight into the company culture.

Consult other Franchisees

It is recommended that prospective franchisees speak with current franchisees to acquire a further understanding of what to expect and their experience of running the franchise.

You can ask questions such as what support is provided, were the financial projections provided close to what was achieved, how they found their 1st year and other further questions that you may have.

Speak to a Franchise Expert

With a lot of helpful information available online and in books, many franchisees hire a franchise consultant.

A franchise consultant is someone with experience in the franchise industry, guides you through some of the more complex hurdles and is on hand to help with any issues that may occur.

British Franchise Association (The BFA) 

British Franchise Association are leading the charge and influence change in the UK Franchising. They hold Franchise Events, offer Franchise Qualifications and Training and much more. For over 40 years, they have been supporting and educating franchisors and franchisees at every level of their development from newcomers to household names, setting the highest ethical standards to make sure everyone is treated fairly. So they are a great place to start your research. 

What fees to expect?

Premises & Shop Fitting

If you need a premise to operate, the franchisor may sometimes sublet the premises or there may be advanced rent or premiums which need to be paid. 

There may also be additional fees if the franchisor has contracted a third party to undertake the shopfitting.

Vehicle & Equipment

Vehicles and equipment may be essential to the running of your business, there are likely to be additional costs to factor in. This could include the cost to purchase the asset outright or a finance facility.

Initial Stock

Initial stock may need to be bought directly from the franchisor or from their approved third party. You’re more than likely to receive guidance from your franchisor about how much stock you will need to get started.

Working Capital 

Capital to be able to cover your essential bills such as payroll, energy bills, taxes, rent etc while an income is being generated.


Initial and ongoing marketing costs to promote and attract customers to your franchise. This can be factored into the initial fee or itemised separately, depending on the franchise agreement.

What finance is available?

Cashflow Finance

Secured Business Loan

Unsecured Business Loans

Acquisition Finance

Cash Flow Finance 

Invoice Finance 

VAT Funding 

Property Finance

Bridging Loans 

Development Finance 

Buy to Let Mortgage 

HMO Mortgage

Commercial Mortgage

Landlord Furniture Leasing 

Refurbishment Loans 

Asset Finance

Hire Purchase, Leasing & Asset Refinancing

Commercial Vehicles 

Renewable Energy Sources

Large Machinery & Equipment

Plant Equipment 

Security Systems & Cameras

Retail & Leisure Equipment

Why use a commercial finance broker?

A commercial finance broker will have a strong understanding of the finance products that are available and access to a panel of lenders – saving you from speaking to each lender directly to find out about their rates and if you’re eligible.

As a whole of market broker as well as offering a full spectrum of finance solutions, Amplo Commercial Finance are able to arrange more than one type of finance facility. Providing more than one potential option, knowledge and experience that you can rely on, finding you the best solution available to meet your requirements.

Speak with our Commercial Finance Specialists today

Whether you’re looking for a new finance facility, would like a review of a facility that you currently have or looking to consolidate business debt with the use of a finance solution, don’t hesitate to get in touch with our team for a no-obligation discussion. Call us on 01270 443510 or complete our enquiry form & we’ll be in touch as soon as possible.


Amplo Group
11 Mallard Court, Mallard Way,
Crewe, Cheshire, CW1 6ZQ

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