Posted:29-June-2026
Not local? Not cheap? The BFA busts franchising's biggest misconceptions
The BFA (British Franchise Association) has recently revealed the most common myths about franchising in the UK today.
In a poll of their members, that includes franchisors, franchisees, advisors and suppliers, the association, considered to be the self-regulatory body for franchising in the UK, asked its members:
What is the biggest misconception about franchising in the UK?
- It’s not a local business – 43%
- You need serious money to start – 41%
Myth Busting
Pip Wilkins, CEO of the BFA said: “The myth that franchise businesses are not real local businesses is one that has plagued the industry for decades; but it is the very fact that they are franchises, that makes them such successful, local businesses.”
What is a franchise?
A franchise is like a branch of a national brand, except it is wholly owned by the franchisee, who can sell it at any time. It employs local people and delivers goods and services to local customers, but at a competitive advantage to their start up counterparts.
National survey statistics
According to the 2024 British Franchise Survey, sponsored by NIC Local, franchise businesses have a less than 6% failure rate, compared to 50% of all start-up businesses, which will fail within the first three years.
From Burgers to swimming lessons
Franchises can range from high street brands such as McDonald’s Restaurants to commercial and domestic cleaning companies, dog walkers, gardeners, children’s activity providers and domiciliary home care providers.
“One thing’s for sure, if all the franchises in a town disappeared, they’d leave an enormous hole in the local economy; would they be considered ‘local’ then?” said Wilkins.
Negative bias against franchises
The poll also revealed some incidences of exclusion of franchisees for their lack of ‘localness’.
Kate Ball, franchisor owner of Mini First Aid said: “Franchisees can be excluded from local business events as they are not considered ‘local’, forgetting that the franchisee is a local person providing employment and delivering services to their local economy.”
Financial barriers to franchising
The second largest myth revealed by the poll was ‘you need serious money to start’ which received 41% of the vote.
The BFA currently has over 350 franchisor members, offering franchises from under £10,000 and going upwards. The BFA’s national survey revealed that about 60% of franchisors estimate the initial investment for their franchise opportunities to be less than £50,000. This suggests that many franchises are accessible with relatively modest start-up costs, providing ample opportunities for prospective franchisees.
Wilkins explained: “It is a misconception to think you need hundreds of thousands of pounds to buy a franchise. Some are less than £10,000 but the cost of entry will vary widely based on the franchise’s operational scale and nature. The important thing to note is that financing is readily available from high street banks, many of whom have existing relationships with the brands, making the process so much easier.”
Capital and credibility
Tracey Cockerton, head of franchise sales and development from Metro Rod said: “You don’t need to be wealthy (to buy a franchise); you need to be credible. Strong franchise systems open doors to funding because they reduce risk for lenders. What matters more is your mindset, work ethic and ability to grow the business. Capital helps, but capability is what really drives success.”
Interested and want to know more about Metro Rod?
The Metro Rod profile outlines all aspects of their franchise opportunity and allows you to contact them for further information or to ask a question.
