Franchising

For Service leavers interested in running their own business, franchising can offer a more structured route than starting completely from scratch. You operate your own business under an established brand, using a proven model and usually receiving training, systems and ongoing support from the franchisor. That structure can suit people with experience of leadership, planning, following systems and taking responsibility for results. However, buying a franchise still involves financial risk, contractual commitments and day-to-day business responsibility, so careful research is essential. This guide explains how franchising works, what to look for in a franchise opportunity and how military experience can transfer into business ownership.

What is franchising?

Franchising allows you to run your own business using the brand, systems and support of an established company. The franchisor owns the brand and business model, while the franchisee pays for the right to operate under that system.

Costs usually include an initial franchise fee and ongoing charges or royalties. In return, franchisees may receive training, marketing, operational systems and continuing support.

The model can reduce some of the uncertainty involved in starting from scratch, but it does not remove business risk. Franchisees are still responsible for running their operation successfully and must work within the terms of the franchise agreement.

According to the British Franchise Association’s latest industry data, UK franchising contributes around £19.1 billion to the economy, with more than 50,000 franchised units operating across the country.

Franchising in 2025: Key Trends and Developments

The UK franchise market continues to evolve as technology, changing consumer habits and new ways of working reshape business models.

More flexible business models: Not every franchise requires a shop, restaurant or office. Home-based and mobile businesses are now a significant part of the sector, which can reduce property costs and offer greater flexibility.

Growth in service businesses: Personal services have been one of the strongest areas of franchise growth, alongside continued expansion in hotel and catering. Opportunities now span everything from care, cleaning and education to fitness, food and professional services.

Technology and AI: Franchise networks increasingly use digital systems for customer management, bookings, marketing, operations and communication. AI is also beginning to support tasks such as marketing, data analysis and administration, although its use varies considerably between brands.

Multi-channel operations: Many franchises now combine physical services with online booking, ecommerce, apps or mobile delivery, giving customers more ways to interact with the business.

For prospective franchisees, the important point is not to chase the latest trend but to look for a model with sustainable demand, realistic costs, strong franchisor support and evidence that existing franchisees can make the business work.

Why follow the franchising route

Franchising can appeal to Service leavers because it combines business ownership with an established structure. Franchise systems typically use clear procedures, defined standards and measurable targets — an approach that may feel familiar to those used to working within structured military environments.

You remain responsible for running your own business, but a good franchisor should provide initial training, operating systems and ongoing support. This can help someone without previous business ownership experience learn areas such as sales, marketing, finance and customer management.

Military experience can also transfer well into franchising. Leadership, discipline, planning, problem-solving and the ability to follow systems while taking responsibility for results are all useful qualities when running a franchise.

Some franchise brands actively welcome Service leavers and veterans, and individual franchisors may offer additional support or incentives. However, these arrangements vary, so always check the current terms directly with the franchisor.

Most importantly, remember that a franchise is still your business and your investment. The franchisor provides the model and support, but success depends on choosing the right opportunity, understanding the finances and putting in the work required to develop the business.

More about the bfa

The British Franchise Association (bfa) is the UK’s self-regulatory body for ethical franchising. It sets standards for members and provides guidance, education and events for franchisors, franchisees and prospective investors.

For Service leavers considering a franchise, the bfa’s Prospective Franchisee Certificate is a useful starting point. The online course covers choosing and researching a franchise, financial considerations, legal agreements and what franchisors look for in a franchisee.

The bfa also runs the Qualified Franchise Professional (QFP) programme for people seeking deeper professional expertise within the franchise industry.

If you need specialist advice, look for experienced franchise lawyers, financial advisers or consultants, preferably those with recognised franchising expertise or bfa accreditation. Independent advice is particularly important before signing a franchise agreement or committing significant funds.

Transferable skills

Military experience can provide many of the skills needed to run a franchise successfully.

• Leadership: Managing people, setting standards and taking responsibility for results are central to both military service and business ownership.
• Problem-solving: Franchisees need to deal with staffing issues, customer problems, operational setbacks and changing priorities.
• Following systems: Franchising relies on consistent procedures and brand standards, making experience of working within structured systems particularly relevant.
• Communication: Franchisees regularly deal with staff, customers, suppliers and the franchisor, so clear communication is essential.
• Resilience: Running any business involves pressure, setbacks and uncertainty. The ability to stay focused and keep working towards an objective can be a real advantage.

The key is to translate military experience into commercial terms and show how your leadership, organisation and decision-making can contribute to running a profitable business.

Decided on a franchise? What next?

Once you have shortlisted a franchise, carry out thorough due diligence before committing any money.

• Research the opportunity: Compare costs, territory, training, ongoing fees and the support provided. Directories such as Franchise Direct and Franchise Supermarket can help you identify opportunities, but should only be a starting point.
• Speak to franchisees: Ask several existing franchisees about profitability, workload, franchisor support and whether the business has met their expectations.
• Check the numbers: Review the full investment required, working capital, ongoing fees and financial forecasts. Test whether the figures are realistic for your territory.
• Review the agreement: Use a solicitor with franchising experience to examine the franchise agreement before you sign.
• Take your time: Do not allow pressure or limited-time incentives to rush your decision.

The bfa’s Prospective Franchisee Certificate also provides guidance on the legal, financial and practical checks to make before investing.

What you should look for

When assessing a franchise, look beyond the headline investment and examine the quality of the business model and support on offer.

• Training and support: Check what initial training is provided and what ongoing help you will receive once the business is running.
• Territory: Understand exactly where you can trade and whether your territory is exclusive, protected or shared.
• Marketing: Ask what national and local marketing support is included and what additional costs you will be expected to cover.
• Technology and systems: Look at the systems provided for areas such as bookings, customer management, reporting and day-to-day operations.
• Financial information: Make sure costs, ongoing fees and any earnings claims are clearly explained and supported by realistic evidence.
• Existing franchisees: Speak to several current franchisees and ask whether the training, support and financial performance matched what they were originally promised.

A reputable franchisor should be transparent about both the strengths and challenges of the business. If information is difficult to obtain, financial claims appear unrealistic or you are being pressured to sign quickly, treat this as a warning sign.

How much does it cost to open a franchise?

Franchise costs vary enormously. A home-based or mobile business may require a relatively modest investment, while premises-based franchises such as restaurants, hotels or gyms can require hundreds of thousands of pounds.

Your total investment may include:

• the initial franchise fee
• training and launch costs
• equipment, vehicles or stock
• premises and fitting-out costs
• licences and insurance
• staff costs
• marketing
• VAT
• working capital.

Always ask the franchisor for a full breakdown of both start-up and ongoing costs, including royalties and marketing fees.

Finance may be available through banks and specialist franchise lenders, but the amount offered will depend on the franchise, your finances and the strength of your business plan.

The Government-backed Start Up Loans programme can also be used for eligible franchise businesses, offering loans of £500 to £25,000 per applicant, together with 12 months of free mentoring.

Still not sure?

Franchising is a major financial and personal commitment, so take time to research before making a decision.

Events such as the International Franchise Show can help you compare brands, meet franchisors and hear from experienced franchisees. The next show is scheduled for 16–17 April 2027 at ExCeL London.

Service leavers can also seek support from X-Forces Enterprise, which provides training, mentoring, funding guidance and networking for the Armed Forces community.

Speak to existing franchisees, take independent legal and financial advice, and only invest once you fully understand the costs, risks and commitments involved.

A final few words of caution …

Franchising reduces some of the uncertainty of starting a business from scratch, but it does not guarantee success. You will still be responsible for customers, staff, marketing, finances and the day-to-day performance of your business.

Be cautious of any franchise that:

• promises guaranteed returns or effortless passive income
• is unclear about fees, costs or financial performance
• discourages you from speaking to existing franchisees
• pressures you to sign quickly
• provides vague information about training or ongoing support.

Before investing, research both the franchise and the company behind it. Check reviews and news coverage, speak to several franchisees and look at the franchisor’s Companies House record, including its accounts, directors, filing history and company status.

Always have the franchise agreement reviewed by a solicitor with specialist franchising experience before signing.