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Franchising the costs

Price of a UK Franchise Opportunity

The price of a UK franchise varies considerably depending upon brand name / industry, sector and location . According to Natwest / bfa UK franchise survey, the cost can be as low as £20,000 or as high as £200K.

The factors that influence price, include:

• Recruitment costs – The actual cost to recruit each franchisee differs between franchise sectors. Some systems are very particular in whom they recruit, which costs time and money.
• License to use – What the license for franchisees offers will affect price.
• Initial training – The initial training may be as long as six months, or more.
• Set up and launch – These costs vary in terms of the franchise and the industry you are considering. If the franchise business requires equipment, such as PC's, or a photocopier, fax and other essential office equipment, then costs will be higher. It really depends how many materials you require before trading, and what is involved in their upkeep.
• Premises based or Van based franchise – If you are looking to work from a store / office the costs will be higher as a location and premises have to be sourced. If you are considering a mobile based franchise then an appropriate vehicle will be given to you by your franchisor before you start trading. This does come at a cost for the franchisor and will be reflected in the price of the franchise.
• Brand quality – The cost for a quality branded franchise may be higher as you are paying for the privilege to trade under that name.
• Product / Service development – If your franchisor requires strong product development to hold their market share and grow; this comes at a cost for the franchisor, so it will be reflected in the price.
• Consultancy support – If the industry requires strong technical knowledge, then the franchisor maybe required to give you intensive training and support.
• National & promotional accounts – If a franchisor undertakes national and local advertising, this could affect the price.