How To Buy A Franchise

Starting a business is an exciting but risky venture. Many independent start-ups struggle with marketing, brand recognition, and operational challenges, leading to a failure rate of nearly 50% within three years.

In contrast, franchises offer a proven business model, strong brand support, and structured training, significantly increasing the likelihood of success.

However, not all franchises are the same. To make the right investment, you need to choose the right franchise, understand the financial commitments, and follow a structured buying process. At MBE (Mail Boxes Etc.), we have helped hundreds of entrepreneurs transition into franchise ownership. This guide will walk you through the key steps to buying a franchise, from research to signing your agreement.

1. Define Your Goals and Budget

Before exploring franchise opportunities, you need to clarify your business goals, level of involvement, and financial capacity. Consider the following questions:

• What do you want from a franchise? Is it financial freedom, a career change, or a scalable investment?
• Do you want to be hands-on or hire staff? Some franchises require full-time commitment, while others allow semi-passive ownership.
• What is your budget? Franchise costs range from £10,000 (low-cost) to £200,000+ (high-investment models).

Writing down your ideal work schedule, financial targets, and risk tolerance will help you eliminate franchises that do not align with your vision.

2. Research and Compare Franchises

With your goals and budget in place, the next step is researching industries and specific franchise brands. Some of the strongest and most recession-resistant franchise sectors include:

• Logistics and courier services – Driven by growing eCommerce and business shipping needs.
• Business services – Including printing, marketing, and IT support.
• Food and beverage – Coffee shops, fast-casual dining, and takeaway services.
• Home services – Cleaning, repairs, and property maintenance.

To compare franchise options effectively, use the following table:

By attending franchise expos, webinars, and discovery days, you can directly compare brands and ask franchisors detailed questions. Speaking with existing franchisees is another valuable way to verify claims about earnings and support.

3. Speak to Franchisors and Franchise Owners

Once you have shortlisted a few franchises, the next step is to contact the franchisors and request a Franchise Information Pack. This will typically include:

• Business model overview
• Investment and fee structure
• Profitability projections
• Training and support details

While franchisors will provide useful insights, existing franchise owners offer the most honest perspective. Ask them:

• How supportive is the franchisor?
• Did the business meet your financial expectations?
• What were the biggest challenges when starting?
• Would you buy this franchise again?

Visiting an operational franchise location is another way to get a real feel for how the business works.

4. Review the Franchise Agreement and Financials

A franchise agreement is legally binding, so reviewing all financial and legal commitments before signing is crucial. Key areas to examine include:

• Franchise fees and royalties – Initial franchise fees grant rights to operate under the brand, while ongoing royalties cover brand support.
• Marketing contributions – Many franchises require franchisees to contribute to a national or regional advertising fund.
• Contract length and renewal terms – Most agreements last 5 to 10 years. Check whether renewal is automatic and if there are renewal fees.
• Territory protection – Ensure that your agreement grants you exclusive rights to a territory to prevent oversaturation.
• Exit clauses and resale rights – Some franchises allow owners to sell their business, while others impose restrictions.

Consulting a franchise solicitor before signing will help you avoid unexpected costs and obligations.

5. Secure Financing If Needed

If you do not have the full investment amount upfront, several financing options are available. Banks often favour franchisees over independent start-ups due to the proven business model and lower risk.

Common funding sources include:

• Bank franchise loans – Many UK banks offer dedicated franchise financing.
• Government-backed start-up loans – Low-interest funding for new business owners.
• Franchisor financing – Some franchisors provide payment plans or financing options.

Before applying for a loan, prepare a business plan and financial projections to increase your chances of approval.

6. Attend Training and Launch Your Franchise

Once financing is secured and the agreement is signed, the final step is training and business launch. A good franchisor provides:

• Operational training – How to run daily business activities.
• Marketing support – Strategies to attract customers.
• Technology training – Understanding software, sales systems, and inventory management.

At MBE, franchisees receive comprehensive business training, ongoing marketing support, and access to a global logistics and printing network, enabling them to offer premium courier, printing, and business solutions from day one.

Pre-launch preparation, such as networking with existing franchisees and testing local marketing strategies, can help ensure a strong start.

Why Choose an MBE Franchise?

For over 40 years, MBE (Mail Boxes Etc.) has helped entrepreneurs build successful businesses across more than 40 countries. Our franchise model is ideal for:

• Business professionals seeking a scalable, high-growth business.
• Entrepreneurs looking for the security of a globally recognised brand.
• Investors searching for a profitable, well-supported franchise system.

What makes MBE unique?

• Multiple revenue streams – Franchisees offer a mix of logistics, courier, printing, and business services, creating strong recurring income.
• Comprehensive franchisor support – MBE provides full training, national marketing, and business development assistance.
• Proven profitability – MBE’s structured model has helped many franchisees achieve long-term success.

With an established reputation as one of the world’s largest business services franchises, MBE offers a strong, scalable business model with long-term growth potential.

Is Buying a Franchise Worth It?

Franchising is a proven way to start a business with reduced risk, but success depends on choosing the right franchise and following the right steps.

By defining your goals, researching opportunities, speaking with franchisees, reviewing financial commitments, and securing financing, you can make an informed investment that aligns with your skills and lifestyle.

If you are ready to explore an MBE franchise, download our Franchise Information Pack and take the first step toward business ownership today.