are franchisees entrepreneurs

Franchises are becoming a trendy business venture, especially among aspiring entrepreneurs leading people to ask the question of, are franchisees entrepreneurs? The short answer is yes, but to provide you with a more thorough answer to why this is, we will cover in this article why franchisees should be considered as entrepreneurs just like other business owners alike.


Why franchisees should be considered as entrepreneurs

Every entrepreneur has to take risks to lead their business to success, just like franchisees do when they buy a franchise. Although franchises do have considerably higher success rates than other types of business opportunities, this does not mean that they do not come without risk. 


As a new franchisee, you are still liable to pay for many costs that come with buying a franchise, such as the initial franchise fee, royalty fees, marketing fees, and other various other expenses so even though franchisees receive training and support and franchises are known to have higher success rates than independent businesses the franchisee still has to work hard to see a return on their investment (ROI) and to become profitable regardless of which franchise they decide to invest in.


If you would like to learn more about the kinds of expenses you can expect as a new franchisee, we recommend you read our comprehensive guide to franchise costs in the UK.


Why do new entrepreneurs buy franchises?

Above, we have mentioned that franchises are often popular, especially among new entrepreneurs. This is because franchises come with a proven and tested business model, unlike most business opportunities, and many other exciting benefits, such as training, exclusivity, and access to a trusted brand name to trade under. 


Again, this does not mean new franchisees have an easy ride. In fact, in some franchise agreements, the franchisor expects new franchisees to reach specific earnings projections. If the franchisee does not meet these, they will receive further support from the franchisor. Also, if a new franchisee continues failing to pull their weight while running their franchise business in some franchise agreements, the franchisor can even terminate your franchise agreement. This shows it’s crucial that a franchisee works hard to keep their business afloat, just like independent business owners.


Do you need to have previous experience to become a franchisee?

Most franchisors will not expect previous business experience to become a franchisee in their franchise. This is another reason why franchising has become an excellent business venture for new business owners. This trend has also helped the UK economy a lot, as franchising contributes a whopping £17 billion to the UK economy each year.


Most of this will be generated from new or existing franchisees, so buying a franchise as a first-time entrepreneur can be a real win-win situation as long as you are willing to put in the hard work and follow the proven system of success provided by your franchisor.


Is franchising a good opportunity for all aspiring entrepreneurs?

Not necessarily. Remember to be a franchisee, you still need to take some risks and work hard in order to keep your franchise business running, and of course, there are some limitations that come with running a franchise instead of starting your own business as franchisees do need to follow a proven system, so they do not have the same freedom as an independent business owner.


Also, you must remember independent businesses do come with a higher failure rate than franchises. Hence, we recommend you consider all the advantages and disadvantages of running your own franchise business before signing the dotted line.

Free Franchise Matching Service Enquiry Form

Searching for the ideal franchise? Don't search for hours use our Free Franchise Matching Service. Just complete the form below & receive details of franchise types you select PLUS a copy of our FREE Franchise Guide straight to your inbox!

Required - I have read and accept the Franchise UK Privacy Policy found by clicking here and am happy for my contact details to be shared with franchises seeking to recruit new franchisees & Franchise UK partners
I would like to receive the Franchise UK newsletter containing the latest franchise opportunities and news
I would like to receive occasional SMS messages about relevant opportunities