Q&A: Does LEGO Franchise in the UK?

LEGO is one of the biggest toy brands in the world, but does it offer the chance to become part of its network as a franchisee? That’s what we’re going to explore in today’s article, as well as the exciting alternatives to this Danish giant.

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LEGO is the family-owned company behind the colourful children’s bricks and toys we know and love across the world. Since being established in 1932, LEGO has built on its core product – the LEGO brick – to create a whole line of products that can be used together, called the LEGO System. LEGO’s purpose has been previously stated as “to inspire and develop the builders of tomorrow through creative play and learning”. You might have wondered if it’s possible to run your own LEGO franchise in the UK. Well, this article will get to the nitty gritty of exactly that. But first, let’s learn some more about the brand itself.

How popular is LEGO around the world?

Based in Billund in Denmark, Lego has offices in London, the US, China and Singapore, enabling it to sell products across the globe. This expansion has been facilitated by the brand’s status as a leading toy manufacturer.

Approximately 20 billion LEGO elements are made every year in the Billund factory, which is equivalent to around 2 million elements an hour. Laid end to end, the number of LEGO bricks sold annually would reach more than five times round the word. This means that there’s around 62 LEGO bricks for every person on earth!

These crazy statistics really do put how much the world adores LEGO into perspective. It’s no surprise then that it’s been named one of Brand Finance’s most powerful brands.

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History of LEGO

LEGO has been around for over 85 years and has changed considerably over time. But where did it all start? Let’s take a look at the history of the toy company.

• The story begins in 1932, when Ole Kirk Kristiansen founded a toy store business in Billund, Denmark. Even today, the company is owned by the same family, as it has been passed down from father to son through the generations.
• The name ‘LEGO’ was first used in 1934. It is an abbreviation of the Danish phrase ‘leg godt’; ‘play well’. Five years later in 1939, the LEGO factory had accumulated ten employees.

source: timout.com

• In 1949, the LEGO brick evolved again, into an ‘Automatic Binding Brick’ with either four or eight studs. In 1953, these bricks came to be known as ‘LEGO Mursten’ (‘LEGO Bricks’). It wasn’t until 1958 that the stud-and-tube coupling system that we would recognise today was introduced, improving the stability of children’s creations.
• Fast forward to this decade, in 2009 LEGO became the fifth largest toy manufacturer by sales in the world. In 2011, yet another LEGOLAND park opened in Florida.
• The company’s aim to globalise the brand was successful and by 2015, LEGO was being sold in over 140 different countries. The company benefits from the huge workforce behind it, totalling over 18,000 employees from more than 70 different nationalities, as of 2016.

Does LEGO franchise?

Unfortunately for investors, LEGO is not currently advertising franchising opportunities. The LEGO Group as a whole is mainly owned by KIRKBI A/S, a holding and investment firm for the Kirk Kristiansen family. KIRKBI A/S has a 75 percent share of the business, while the LEGO Foundation owns the other 25 percent.

How to get involved with LEGO

Although you can’t own your own LEGO franchise in the UK, there are other ways to get involved with the brand including in sales, information technology, retail and more! Click here to be redirected to its website and start browsing the latest listings.

Did you know? There’s around 62 LEGO bricks for every person on earth!

The game and toy manufacturing market in the UK

The industry has proved resilient in recent years, despite changing consumer tastes and the economic uncertainty of Brexit. This year, the industry’s total revenue reached around £603 million and there were around 610 businesses in operation. There was an annual growth of 1.1 percent (since 2014).

Toy production businesses don’t really suit the franchise model, but toy store concepts do perfectly! The market value of games and toys in the UK has been increasing since 2015, and this year it reached £9.2 billion.

If you fancy entering the lucrative industry with your very own toy store franchise, consider two of our top picks below.

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Toy store franchise opportunities

Tubz Brands

A vending machine franchise might not be what first comes to mind when you think of a toy company, but as well as offering delicious treats, you can also buy toys such as magic squishy balls and flashing mice in one of its towers.

Why invest in Tubz?

Tubz Brands is the number one tower vending franchise in the UK and Europe and has over 300 franchisees in its network. The franchise opportunity involves minimal staff and storage and your sites have 24/7 operating capabilities- maximising your profits.

What’s included in the package?

Here is just some of what you get in return for your investment

• Site locations for towers
• Customer manager
• Two-year guarantee on equipment
• Comprehensive training package
• Ongoing support
• 24/7 engineer support

How much is the investment?

You can get started for under £3,000!

The Entertainer & Early Learning Centre

The Entertainer is the largest independent toy retailer in the UK, operating from over 170 stores. Due to it currently experiencing great success here it isn’t offering franchise opportunities. However, it is looking for international franchise partners and is a great example of a powerful toy retail giant using franchising to further its international growth. If you’re open to a business venture overseas, click here to get started.

It’s all fun and games with a toy store franchise

Although there aren’t many toy store franchise opportunities in the UK, franchising is used more widely across the globe, for instance the Toy Store which is looking to expand into Turkey and Eastern Europe. However, this isn’t to say that ambitious toy lovers couldn’t start their own toy store business from scratch, as statistics show the industry has great potential. If any new toy franchise opportunities become available on our site, you’ll find them here.