Top New Franchises UK in 2019
The Editorial Team , writer
Each year, the franchise industry sees an increasing number of established and fledgling companies expanding their brands through franchising. While those who’ve been around for a while have cemented their customer-base and stick to tried and tested business models, protocols and practices, the new kids on the block are those that help to shape the industry’s future.
Using innovative marketing methods, offering new products and services, and digging deeper into the opportunities provided by technology, new and emerging franchises are the ones that provide potential franchisees with new prospects and the chance to buy into what might be the next big thing.
Potential franchisees have two main types of franchise to choose from – B2C and B2B. Before we take a look at the top new franchises for 2019, let’s take a quick look at the difference between the two.
What is a B2C franchise?
B2C is shorthand for ‘Business to Consumer’. Any business with a B2C model effectively sells either services or products directly to the customer. That can be in the real world or online via an internet shop front.
B2C products and services are just about everything you can imagine. Take, for example, food franchises. These are a perfect example of a B2C business, as the outlet is supplying food directly to the consumer. That can be as a mobile catering operation, a burger or pizza franchise, or even a coffee and sandwiches van that goes around business parks and keeps busy workers refuelled during the day. It can also mean personal services such as a dog grooming franchise (where the franchisee is providing a service directly to the consumer and their pet), a tyre repair franchise, or a gardening and lawn care franchise that works directly with homeowners.
B2C franchises can also be online affairs, where a franchisee is selling directly to the public via an internet site. This will mean considerable time and money invested in creating the online ‘shop front’, complete with shopping cart facilities, secure logins, and brand-specific content.
B2C franchises are flexible and often highly profitable, but they do require a lot of work, as every individual customer has to be attracted in by the franchisee. That can mean a lot of time spent marketing and promoting the business to try and drive up offline footfall, online visits and conversions, or a combination of both.
What is a B2B franchise?
B2B is shorthand for ‘Business to Business’. If your business is ‘B2B-focused’, then you are selling goods and services to other businesses, rather than individual public customers. Again, this can be a ‘real world’ exercise or an online model.
B2B products are specifically designed to be useful to businesses. That can be a specific sector requirement such as selling sauces to the catering industry or spare parts to the automotive trade, or a more generic product range such as stationery and office supplies (useful for almost every business) or office cleaning services.
The key with a B2B franchise is that while the number of individual customers may be much smaller (especially if you’re supplying a specialist trade or product to a niche sector), the volume of business they do with you is much higher. You’ll also find that most B2B clients are repeat customers, so they keep coming back for the same thing time and time again. Whereas B2C customers tend to be quite fickle (they may buy from you only the once), your B2B customers form long-term relationships with suppliers and are loyal as long as you keep providing the right quality service or product. That gives you a much more stable revenue stream, enabling you to plan.
If you’d like to read more about B2B franchises, take a look at our ‘What does B2B Mean?’ article for a more in-depth look at this fascinating topic.
>> Read more:
- Top B2B Franchises in the UK
- B2B - What is it?
- B2B Enterprise: Create a Franchise
- B2B Examples: Franchising?
- B2B Sales: Start Your Own Business
What’s hot in the franchise pot?
2019 is going to be a busy year for franchises. We predict that the franchise model, which has seen steady growth over the last ten years, is starting to take off. Setting up and running your own business from scratch can be incredibly challenging and intimidating. It can also be tough to get adequate financing from lenders, no matter how good your idea.
The advantage of a franchise is that you’re not doing this alone. You have an entire support network in place from the moment you sign up. From stock supply to advertising and branding, business advice and training to use specialist equipment, a franchise is a complete business package.
It’s also much easier to get finance from professional lenders who specialise in franchises. Why? Well, because they’re not just investing in you as an individual, but in a tried and tested business model that’s been repeatedly delivered and upscaled by a well-established brand. That gives it much more appeal to lenders, who know their investment is much more secure than it would be if they were to put the same amount of capital into a ‘from-scratch’ start-up.
Bearing all that in mind, and with the knowledge that there are hundreds of different types of B2B and B2C franchises on offer, we’ve put together a list of the franchises we think will be doing particularly well in 2019. It was tough to narrow it down, but we believe the selection gives you a good idea of what’s on offer. Remember, if you want to know more about any of them just follow the links.
Here are the top five new franchises for 2019
1) Bagel Corner
In a perfect example of the ‘see a niche, fill a niche’ mantra, the founders of Bagel Corner spotted a gap in the market. While the popularity of fast-food had reached an all-time high in France in 2010, they noticed that there were no chain stores focused solely on bagels. Since the opening of its flagship store in Rue de la Boétie, Bagel Corner has seen its sales increase by more than 20% - and, with over 30 active outlets in France alone, shows no sign of slowing down. The plan, now, is to franchise the brand into countries, such as the UK and Morocco.
For investors, Bagel Corner offers an established brand and a variety of operational possibilities. Bagel Corner stores focus 60% on takeaway, 30% on eating in the restaurant, and 10% on home-delivery. For franchisees, this means they can decide to open anything from a small and straightforward kiosk, to a full-blown diner, with the start-up costs reflected in the venture they choose. In addition to a comprehensive support team, the brand offers further incentives, such as partnerships with major companies, which, currently, include Google France and Elior offices in airports and train stations. Bear in mind that this is a franchise for those with very deep pockets or with good financing in place, as the minimum investment level is an eye-watering £500,000. The returns though are exceptional, especially if your outlet is located in a premium site with high footfall.
2) Challenger Mobile
With an estimated 37million people owning mobile phones in the UK, alone, franchises for mobile and communication technology solutions are on the increase. Challenger Mobile is an independent company, with its eyes set on rivalling the ‘big four’ companies, when it comes to products, services and customer care. Established in 1991, it has already earned itself a formidable reputation and loyal customer base. While the company offers mobile and communication technology solutions, potential franchisees don’t need any background in the industry: full training, resources and equipment are provided, allowing investors to focus on the job of providing the best possible customer service. Challenger Mobile encourages its franchisees to court other businesses as clients, offering them a two-year contract for the supply of products and services. Once the contract expires, this provides the ‘rolling’ opportunity to recapture those same customers and acquire new business from old. This is an excellent B2B franchise, and while opportunities only come up occasionally, it’s well worth putting on your Watch list if technology is your bag.
Families Magazine has tapped into the marketplace of mothers of young children reading articles and editorial pieces written by mothers of young children, which is a sector reckoned to be all but recession-proof. Ideal for entrepreneurs who want low start-up costs, but with the backing of a big brand, it costs around £12,500 to buy into the franchise, with predicted profits of up to £30,000.
For its franchisees, Families Magazine offers a good range of incentives, including a free, monthly editorial, free sales support for the first 24 weeks, a full training and sales program and access to a support team. As a franchise, this is ideal for those who want to work from home and choose their hours, yet reap the benefits of a full-time wage, while working part-time hours. Families Magazine sells an estimated 4million issues per year, published by 35 existing editions.
With 12% of consumers switching from traditional fast-food restaurants to gourmet burger outlets, there’s a definite, growing demand for upmarket patties and buns. Five brothers who couldn’t find what they wanted out of a ‘tasty burger’ started Loaded Burger in 2014. While they’ve developed a menu that’s already rivalling established chains such as GBK and Byron, Loaded Burger has kept its eye firmly on the pricing, offering its creations for less than £10. In this way, it’s taken a hefty bite out of both the fast-food and the gourmet burger markets.
Franchisees benefit from a comprehensive franchise package, a tried and tested business model and a turnkey package of equipment, core food lines and consumables. On top of a licence to use the brand and long-term management support, Loaded Burger offers all the right ingredients to the right investor, for potential success.
5) Zip Yard
This may seem to be a quirky choice, but with the new ‘make do and mend’ mentality that’s replacing our throwaway society, this could be one to watch. The Zip Yard is a comparatively new franchise, but one that offers significant opportunities. It only began franchising in 2009, with its first UK franchises being sold in 2011. However, despite the company’s relative youth, it has already become the garment repair industry’s fastest growing business. With unique and highly visible branding, the Zip Yard offers its investors access to a turnkey operation to set up and run their own business. The start-up package includes:
- Licence to trade
- Full business training
- Services of an experienced shop-fitting team to customise chosen premises into a Zip Yard business
- Equipment, merchandise and furniture necessary for the business
- Hardware and software for sales, pricing and accounts reports, with technical support.
- Marketing plan and a comprehensive range of marketing collateral
- Access to The Zip Yard Intranet
- Staff recruitment programs.
However, in its desire to see its franchisees succeed, the Zip Yard also offers continuing support in all the vital aspects of business, including marketing, operations, procurement and recruitment. This is the ideal opportunity for potential franchisees looking for low start-up costs and ongoing support from a new and exciting brand.
Buying a franchise - why?
Buying into a franchise significantly reduces the chance of failure and the loss of capital when compared to starting your own business from scratch. With the opportunity to be your own boss and choose your own hours – but with the support and backup of an established business, buying into a franchise may mean working hard in the short-term but, pick the right one and the long-term benefits are there to be reaped.
2019 looks like it’s going to be a busy year for our franchise providers, and as more and more people see the attractions of a franchise you are bound to see a cluster of new businesses starting in your area, all using the franchise model.
Franchises offer you the opportunity to choose the type of business you want, whether that’s a B2B or B2C model. Both have their positive points, and both, with hard work, passion, and enthusiasm on your part, can generate a very healthy income for years to come. Funding is available for most investments, so even the more expensive buy-ins are not beyond the reach of the average entrepreneur. Have a browse through our 2019 franchise offers and see what appeals to you!
The Editorial Team , writer