Why you should franchise your business in 2025
Occasionally a set of circumstances come together that create an irresistible commercial opportunity. 2025 is exactly that because all the stars have aligned for any business considering how to scale this year.
More than at any other time if you have responsibility for expanding your business then you simply must look at franchising. Even if you’ve previously discounted it and even if you previously failed at it. Set aside everything you thought about franchising and read this article. It may be the best 5 minutes you ever spend in business. We are now at a moment in history that changes EVERYTHING!
Why you should franchise your business in 2025
More fish in the sea
Firstly there are more potential franchise buyers now than at any other time in history. Economic downturns create job losses and business closures. Forget Covid just for a moment because a recession is what we’re talking about. Recessions are welcomed by those who are looking to recruit franchisees. There’s just a lot more demand for franchises right now. Furthermore the cost of living crisis and general discontentment with employed roles is feeling franchise demand. People also want flexible working. Employers aren’t seeing eye to eye on that one!.
Pressure on second incomes
When one person is a bread winner and things get tough for them, the other party contributes. This can often mean that demand for part time or flexible format franchises increases. This is the case for thousands of households now and will be for the next few years in all likelihood.
The process of franchising is often more profitable than the business itself!
A peculiarity of the franchise industry is that Franchisors often earn more profit from selling franchises than they the actual business earns in its normal operations. We’ve lost count of successful private businesses that have experienced this. The ongoing royalty from say 50 franchisees added to the initial investment they make often runs into 7 figures.
Brexit
The UK government has promised growth and so needs to stimulate the startup economy. This point on its own might be the best reason why you should franchise your business in 2025! Here at Lime Licensing Group we can also usually obtain a government startup loan for potential investors. This removes the biggest hurdle new franchise partners face leaving the pathway clear to buy your franchise.
Franchising & Covid-19
Imagine pre covid levels of demand for franchises across all sectors of the economy. That demand is now compressed into fewer sectors as many investors shy away from franchises that have been hit by Covid – or might be next time around! This means there’s more demand chasing fewer franchises. So if your franchise worked in lockdown, franchising your business this year is a wonderful opportunity.
Creating a franchise system that could roll out nationally and internationally is actually cheaper than buying a single franchise!
Read that again. Lime’s team can design the entire franchise system at a price that gives you a 100%+ ROI with only one franchise sold. The franchise “department” can then be cash flow positive thereafter.
A new income stream to your business
In addition to selling widgets your business is now selling franchises too. It’s a whole new income stream for your brand. What’s more you’ve probably already got everything in place to do it. All you need is a franchise consultant and it’ll happen for you. (Hint: we have the capacity for a few more clients)
Expansion where you couldn’t easily expand before
Imagine that you’re a cleaning company in Swansea (random example). How easy is it for you to operate in Dundee? Probably quite tricky. A franchisee will do a better job than you. They live there, have personal and professional contacts there. They even have the local accent. There kids go to the local school. They’ll do it better than you ever could. They’ll pay you handsomely to learn what you already know to replicate your Swansea business there. Doesn’t it just make sense to franchise where you can’t fully optimise your business yourself?
Franchising is now the #1 business expansion route. It’s a £20 Billion+ market place. There are record levels of potential franchise owners out there right now and competition for the best opportunities. Could you do a better job than the average franchisor – likely yes!
Andy Cheetham is the founder and CEO of Lime Licensing Group.
There are other reasons why you should franchise your business in 2025. But let’s just get on with a quick zoom and we’ll tell you more about franchising your business. Drop Andy an email here, or call us today on 01275 662001
Further reading:
10 reasons to franchise a business