How to Choose the Retail Franchise That's Right For You

Elliott Fudge, writer

Published at 11/10/2021, Updated on 04/05/2022 , Reading time: 5 min

How to Choose the Retail Franchise That's Right For You — Photo © How-to-Choose-the-Retail-Franchise-That's-Right-For-You.jpg

Running a retail franchise is a great way to get the most out of a busy and competitive sector. But with so many different retailers out there, how can you choose the retail franchise that’s right for you?

There’s no denying the retail industry has been hit hard by the pandemic. So, when it comes to deciding where your next profitable opportunity lies, you could be forgiven for wondering what the future of retail holds. But, as we all get back to doing the things we love to do, there’s every reason to be excited about running a retail franchise.

A bricks and mortar retail franchise

The bedrock for the retail industry for generations, and one of the most profitable and rewarding kinds of businesses to run, bricks and mortar retail stores are the go-to stores for many franchisees. Usually involving a fixed premises, inventories, stock reserves, point of sale equipment and team members.

While online retail has been growing quickly over the last few years, online retail still only makes up one fifth of all retail sales [Statista]. Bricks and mortar stores still make up the majority of the retail sector, and while there are certainly challenges, there is still plenty of reason for optimism in retail.

>> Read more:

Choosing the right bricks and mortar retail franchise for you

A lot of the reason for franchisee optimism in retail is that more and more franchises are looking for multi-unit franchisees. Running one retail unit can be challenging, and while running multiple units can be a challenge, you’ll also be well-placed to really push your potential profits to the max.

Multi-unit franchising isn’t for everyone, so when it comes to being a multi-unit franchisee, you will need to prioritise these tasks:

Develop your leadership and management skills
Figure out an effective recruitment strategy
Learn how to delegate responsibility
Invest in your employees and their development
Maintain high standards
Keep your business focused on the long-term

An online retail franchise

Bricks and mortar retailers are and will remain popular for some time, but it’s difficult to ignore the growing popularity of the online retail sector. Online retail sales as a proportion of total retail sales has been growing for several years, peaking at 37% during the pandemic [Office for National Statistics].

There’s little sign that the online retail sector will slow down any time soon, meaning that ambitious franchisees eyeing up big profits could do far worse than looking to an online retail franchise. There are many advantages to joining an online franchise, so if you’re looking for a growing and diverse retail sector to work in, you could consider starting your own online franchise.

Choosing the right online retail franchise

Starting an online retail franchise will require you to go through a slightly different process to that of a bricks and mortar store. For example, while you won’t need to find a fixed premises, you will need to find the right site for, or negotiate access to, a central warehouse containing your goods to be dispatched.

Thankfully, one of the biggest benefits of running a franchise is your franchisor. You’ll have plenty of support and training to go off, so when it comes to getting the right facilities for your business in place, you can expect to work closely with your franchisor. As a franchisee, you’ll also have:

A pre-existing customer reputation and brand identity
Beneficial financial rates
Dedicated mentors and tutors
Good job and income security
An improved survival rate versus your smaller competitors

A hybrid retail franchise

Digitally-influenced brick & mortar purchases surpassed 50% in many categories prior to the pandemic. Now that number is more like 70%. - Steve Dennis

The increasing shift towards online retail is having a knock-on effect. Specifically, many consumers are choosing to shop locally, despite some of the benefits of shopping online. The resulting picture is one where neither shopping entirely online or in-person is the best choice. This is where hybrid retailing is making its name.

Hybrid retailers capture the best of the online customer experience, while maintaining a physical presence for various reasons. This balanced the benefits of online retail, while addressing some consumers’ concerns about the ethics and sustainability of online shopping. Whether you choose to run a buy-online-pick-up-in-store (BOPIS), or something else digitally-enhanced, there is plenty of scope for growth for the hybrid retail experience.

>> Read more:

How to choose the right hybrid retail franchise

The jury is still somewhat out on hybrid retail. Despite the clear growing popularity among companies and consumers for this kind of experience, there are still many unresolved trends to be addressed. However, this does mean there is plenty of room for growth for the right franchisee.

When looking for a hybrid retailer, consider some of the following questions:

Are the initial and ongoing fees affordable?
How much financial support is on offer?
Is much of the digital technology supplied by your franchisor, or by your own expenses?
How much training and support will be available to you, both before and after you open your retail business?
How easy is it to pitch your own ideas, adjust ways of working, and give feedback?

Hybrid and digitally-enhanced stores are still developing, so you may need a patient approach. However, if you’re ambitious and keen to make this growing area of retail your own, this is one retail experience to keep your eye on.

Start your own retail franchise today

Retailing has had a tough time over the last two years, but this doesn’t mean there aren’t opportunities to be had. Whether you’re looking to capitalise on the return to bricks and mortar retail, capture the online wave, or put together something entirely new, the retail industry is still as innovative as it’s ever been.

If retail isn’t quite right for you though, there are plenty of opportunities to be found elsewhere. There are some developing trends within the delivery and courier sector – so, if you’re looking to make a career change with a courier franchise, there are profits to be found in this industry. Or, for a full list of other franchising opportunities, consult the UK franchise directory.