The franchise opportunities you’ve never heard of
Published: 15 January 2020
When we think of a franchise, we tend to think of household names that have achieved world domination through this business model such as McDonald’s, Starbucks and Marriott International.
Historically, franchises have succeeded in convenience and service industries. Today, the business model is stretching into new sectors, providing opportunities for investors looking to become franchisees and individuals looking for a turnkey solution to becoming business owners.
Wellness
The wellness industry has experienced rapid growth through franchising. The sector has also become a major player in franchising with fitness brands such as Anytime Fitness, OrangeTheoryFitness and F45 all taking off in the UK. Anytime Fitness’ CEO Stuart Broster says that, “According to the 2017 State of the UK Fitness Industry Report, health and fitness is the sector to invest in. Market value has increased to £4.7bn and membership has exceeded 9.7m. Penetration is also at an all-time high of 14.9 per cent, meaning that one in every seven people in the UK is now a gym member.”
Gym franchises have become a staple part of the franchising landscape for some time, with the UK’s PureGym a recent success story. It is now the country’s largest gym operator with over 230 locations and one million members. There are opportunities opening in this exciting sector too, from nutrition, supplements, mental wellness centres to the burgeoning medicinal cannabis market.
Property
Estate agency is another industry now looking to the power of franchising. Well-established agents such as Winkworth, Martin & Co and Belvoir all offer franchise opportunities. With the mean turnover in property services at £240,000 last year, Winkworth reported an average turnover of £475,000, significantly outperforming the market .
Flexible workspace
Last year alone, the number of flexible working locations worldwide grew by 15.2 per cent, and the estimated value of the industry now sits at $26 billion . At Regus, we recognise the potential in franchising to support our goal of making a professional workspace available on every corner. We already have 27 franchise partners across 22 countries, growing fast to meet a soaring global demand.
In the UK, our recent centre openings in Southgate and Huntingdon, as well as our upcoming opening in Ipswich, have provided thriving local businesses with the flexible workspace they need. Regus’ parent company IWG’s Suburban Economic Survey 2019 showed that flexible working is set to pump £12billion into suburban economies in the next decade. By working with our franchise partners such as Kash Group Office Ltd, ACCA Office Ltd and SME Properties Ltd, who will benefit from Regus’ 30-year heritage in the serviced office market, it will be at the forefront of this franchise revolution.
The franchise opportunity
Restaurants and hotels have led the way in franchising but as we’re starting to see, it’s a business model that can work in many different sectors. McDonald’s and Marriott International have grown lucrative brands that now stretch across the world. At Regus, we’re starting to do the same with almost 3,300 locations in over 1,000 towns and cities across more than 110 countries.
Aside from an established brand, franchising provides the opportunity to continue being your own boss while receiving ongoing training and support. Additionally, the economic benefits are clear. According to the British Franchise Association and Natwest, the UK’s franchise industry increased its annual turnover by 46% between 2005 and 2015. Meanwhile, a record 97% of franchise units reported profitability.
Investors looking for their next big challenge may want to try one of these emerging franchise sectors. Whether it’s an estate agent, jumping on the wellness trend, or delving into flexible workspaces, we’re looking at a boom in franchise opportunities.
