If your business works well in one or two locations and people keep asking whether they can open one of their own, franchising may be the way to grow it. This guide explains how to franchise a business in the UK, step by step: checking the business is suitable, protecting the brand, running a pilot, writing the operations manual, getting the franchise agreement drafted, setting fees, recruiting franchisees and supporting them once they open. It also covers what it is likely to cost and which specialists franchisors usually bring in.
Is your business ready to become a franchise business?
Franchising works by selling other people the right to copy a business that already works. Goldstein Legal, a franchise law firm, puts it plainly: a franchise is unlikely to thrive unless you already have a proven business model with a track record of profitability. Established and successful in one place is the starting point, not the finish. Before spending anything, it is worth being honest about a few questions:
- Is the business profitable enough that a franchisee can pay ongoing fees and still earn a decent living? People buying a franchise compare it with starting a new business of their own, so the franchise opportunity has to be better than that.
- Can the way you run it be written down and taught to someone without your experience?
- Does it work outside your own area, with someone else’s customers, staff and products?
- Is there a brand customers recognise, or one that can be built?
- Do you want to spend your time training and supporting other business owners rather than serving customers yourself?
The last question matters more than people expect. A franchisor’s job is recruiting, training and supporting franchisees, and protecting standards across the network. Our guide to what a franchisor is explains the role in more detail.
The steps to franchising your business
1. Check the model and the numbers
Goldstein Legal lists a business analysis, including a franchise model and pro-forma financials, as one of the first things a franchisor pays for. In practice this means working out what a typical franchised unit would earn, what it would cost to open and run, and what is left once the franchisee has paid your fees. If the numbers only work for you as the owner, they will not work for a franchisee.
2. Protect the brand
Your franchisees are paying to use your name, so it needs to be yours. GOV.UK says a UK trade mark lasts 10 years and must be renewed every 10 years, and registering one costs at least £205, usually more depending on how many classes of goods or services you cover. Pinsent Masons notes that an unregistered mark may have some protection under the law of passing off, but that this is difficult and expensive to rely on, so registration is recommended. Search the register before you commit to a name.
3. Run a pilot
A pilot tests whether the business works when someone else runs it. Pinney Talfourd, a law firm with a franchise team, explains that businesses generally pilot their model to see whether it will work as a franchise, often using one of their own outlets run as if it were an independent franchisee. Pilot agreements with real franchisees are often for one or two years rather than a full term. Whatever the format, the pilot is where you find out what needs fixing, while the risk is lowest, before you sell the model to anyone.
4. Write the operations manual
The operations manual is the business in writing: how customers are served, how staff are trained, which suppliers are used, how the systems work and what the brand standards are. Business Gateway describes franchisees receiving manuals, training, a page on the main website and logins to IT and accounting software as part of what they buy. Specialist writers can help, and our directory lists operations manual providers.
5. Get the franchise agreement drafted
The franchise agreement is the contract that grants the franchise and sets out both sides’ obligations. There is no franchise-specific law in the UK, so Pinsent Masons explains that the agreement, together with contract, competition and intellectual property law, carries most of the legal weight. It should be drafted by a solicitor who knows franchising. Compare franchise agreement solicitors, and read our guide to franchise agreements for the main clauses.
6. Set fees and the financial model
Most franchisors charge an initial fee and then a continuing fee. HMRC’s manual describes continuing fees calculated as a percentage of turnover, a mark-up on goods bought from the franchisor or a fixed payment per outlet. Sprintlaw, a law firm, gives a typical UK range for ongoing management fees of 6% to 12% of turnover and 1% to 2% for marketing fund contributions. Our guide to franchise fees, royalties and the marketing fund explains how to think about each one. A franchise accountant can test whether your fees leave both you and your franchisees a profit.
7. Recruit franchisees
Goldstein Legal lists a franchise prospectus and a marketing strategy for franchisee recruitment among the things to have ready before launch. Recruitment usually combines your own website, franchise portals, PR and exhibitions. The main UK shows are listed on our franchise shows page, and our guide to UK franchise exhibitions in 2027 covers the dates. Take time over vetting: Business Gateway points out that one poor franchisee can damage the brand for everyone. Each person should have a business plan for their territory and enough money to operate until the unit breaks even.
8. Launch and support the franchise network
Once franchisees open, the work moves to training, field support, marketing and keeping standards consistent. This ongoing support is what franchisees pay their fees for, and it is what most affects whether each one is successful. Our guide on keeping standards consistent across a network covers audits and scorecards.
How much does it cost to franchise a business?
There is no fixed price, and anyone quoting one without seeing your business is guessing. Goldstein Legal said in 2015 that a franchisor will often have spent upwards of £30,000 before launching the model, covering the business analysis, a pilot, a franchise prospectus, a recruitment marketing strategy and a tailor-made franchise agreement. The table shows the main cost areas and who you might work with on each.
| Cost area | What it covers | Who usually helps |
|---|---|---|
| Business analysis and financial model | Unit economics, fee levels, pro-forma financials | Franchise consultants, accountants |
| Brand protection | UK trade mark registration and searches | Trade mark attorneys, solicitors |
| Pilot operation | Running and refining a test unit | Your own team, with consultant input |
| Operations manual | Writing the system down | Manual writers, consultants |
| Legal documents | Franchise agreement and related contracts | Franchise solicitors |
| Recruitment marketing | Prospectus, website, portals, exhibitions | Recruitment and marketing specialists |
Do you need to join the BFA to franchise your business?
Membership of the British Franchise Association is voluntary. Pinsent Masons explains that the BFA Code of Ethics is not legally binding, but members must follow it, including giving full and accurate written disclosure of material information before anything binding is signed. Many prospective franchisees look for membership as a sign that a franchisor follows good practice, so it is worth reading the BFA’s requirements early, even if you join later.
Who can help you franchise your business
Very few first-time franchisors do all of this alone. A franchise consultant can guide you through the whole process, while solicitors, accountants and recruitment firms each handle their part. Browse our franchise development and franchise consultant listings to compare firms, and if you are not yet sure franchising is the right model, read our comparison of franchising or licensing.
Sources
- Franchising vs licensing, which is right for my business? (Goldstein Legal, 2015)
- Register a trade mark (GOV.UK)
- Operating a franchise in the UK (Pinsent Masons, Out-Law guide, October 2025)
- Pilot franchises: what you need to know (Pinney Talfourd)
- Franchising (Business Gateway)
- BIM57601, Franchising: general (HMRC Business Income Manual, GOV.UK)
- Franchise fees, what you’re really paying for (Sprintlaw, May 2025)
