If you’ve ever dreamed of running your own business but feel overwhelmed by starting from scratch, franchising might have crossed your mind. But is it a legitimate business model, or some sort of glorified MLM or pyramid scheme?
Let’s take a look at some of the facts, in particular in relation to service-based franchises like the children’s activity sector.
What is Franchising?
Franchising is a business arrangement where a franchisee pays an initial fee and ongoing royalties to a franchisor (the parent company) in exchange for the right to operate under their established brand.
Setup includes access to the franchisor's proven systems, training, marketing support, and usually, an exclusive territory to operate in.
You’re essentially running your own business but with a built-in support network and the credibility of an established name.
Franchising in the UK: The Numbers Speak for Themselves
Franchising is thriving in the UK. According to the latest British Franchise Association (BFA) and NatWest Franchise Landscape Report, the sector contributes over £19 billion to the UK economy across more than 50,000 franchise units.
What’s more, 89% of franchises are profitable, with a average turnover of £400,000. Franchising is not only a legitimate, but a robust and sustainable model, for business ownership.
Why Franchising Works
Proven Systems: Franchises offer tried-and-tested business models, reducing the risks associated with starting a business from scratch.
Training and Support: Most franchisors provide comprehensive training and ongoing support, ensuring you’re never alone in your journey.
Brand Recognition: Operating under an established brand gives franchisees instant credibility and a ready-made customer base.
Economies of Scale: Franchisors often negotiate bulk deals on supplies, marketing, and other essentials, reducing costs for franchisees.
Community: Being part of a franchise network connects you with other franchisees, creating a community to share advice and encouragement.
The Rise of Service-Based Franchises
Service-based franchises, which focus on offering services rather than physical products, have become increasingly popular in recent years, recognised by the BFA as the biggest UK growth sector. They usually require lower startup costs than product-based franchises (e.g., retail or food) and can operate from home, reducing overheads.
Within this category, children’s activity franchises are booming. From music and dance classes to sports programs and STEM workshops, these franchises meet a growing demand from parents and schools eager to enrich children’s lives.
Why Children’s Activity Franchises Are a Smart Choice
Growing Market: Parents in the UK spend around £3 billion annually on extracurricular activities for their children, according to Barclays.
Flexibility: Many children’s activity franchises allow you to work part-time or adjust your schedule around family commitments.
Impactful Work: These franchises provide a sense of fulfilment as you’re contributing to children’s development and well-being.
Scalable Model: Starting with a single territory, franchisees can often expand to multiple areas as their business grows.
Is Franchising Right for You?
Franchising isn’t for everyone. It requires an upfront investment, adherence to the franchisor’s rules, and a commitment to following established systems. If you want to start a business your way with all the development and learning associated with doing so, then it might not be suited to you.
However, if you value a proven roadmap, support network, and the chance to build a business with reduced risks, franchising is a legitimate and rewarding path to consider.
When done right, franchising is not just a legitimate business model—it’s a thriving one. Service-based franchises, particularly those in children’s activities, offer exciting opportunities to combine financial success with meaningful work. If you’re looking for a business model that combines flexibility, support, and impact, franchising might just be the perfect fit for you.
If you'd like to know more about franchising with Inventors & Makers, you can download our franchising brochure.
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