Franchising | Royal Bank of Scotland



Are you interested in becoming
a franchisee or franchising
your business?

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Security may be required. Product fees may apply. Over 18s only.
Any property used as security, which may include your home, may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.

Is franchising right for you?

Starting up a new business always carries a risk, but a franchise could reduce it. That’s because you’re using the proven business system of your franchisor. They’ve already gone through the process of finding out what works and what doesn’t and are on hand to help you replicate their success.

Want to become a franchisor?

You may be interested in Franchising your business where you, as franchisor, grant a licence to your franchisees to operate a business under your name. You will be giving them a system to market your products or services for a specified period, and often in a specified geographical area. 

How can we help
Here are some reasons to become a franchisee

Proven business format

In most cases you’re buying into a proven business model. You’ll be using the franchisor’s good name, know-how and tried and tested products or services, which will help increase your business success.

Everything's already in place

It would be usual for all systems, procedures and guidance on all aspects of running the business to be in place when you become a franchisee.

You'll get training and ongoing support

Expertise, tips and personal experience. It’s all readily available to help you overcome challenges you may face and get your business growing from the word go.

It's already an established brand

Recognised locally and maybe even internationally, you’ll inherit a loyal customer base before you’ve even started.

Things to consider

What type of franchise can you afford?

As a very rough rule of thumb, add up your savings and multiply them by three. So, if you’ve got £20,000 sitting in the bank, you might be able to finance a franchise with start-up costs of around £60,000. You’ll need some security to back you up, such as a property you own.

Choose a sector that you're interested in

The hard part is settling on an industry to work in, so choose a business you’ll be happy to work in day-after-day. Think about the kind of hours you’re prepared to work. Some franchise businesses operate during office hours, while others do most of their work during evenings and weekends.

Does the franchise run a tight ship?

All franchises have rules to help them maintain the consistency of their products, services and the brand itself. You’ll often be provided with an operations manual that provides all the information you need to operate that business. Be a little cautious if there are no measures in place to help you deliver to specific standards.

Do your homework

It’s worth getting a really comprehensive understanding of whether it’s a good franchise to get involved with. Check out their business stability and make sure the franchisor has operated for a number of years to prove the business works. Find out when the business started and when they started to franchise.

Make sure you're aware of any restrictions

You’ll have to accept any restrictions placed on you by the franchisor, including those that apply if you decide to leave.

Why have former franchisees failed?

As with any business, franchising is not a guarantee, but it’s important to know why franchisees fail. These are some of the questions you should consider:


  • Is it because the market declined?
  • Is it from lack of franchisor support?
  • Or is down to inexperienced staff?

Speak to as many operating franchisees as you can

Do your research and get a view of what life is like in the network. Don’t accept the views of the one franchisee you’ve been introduced to by the franchisor – they might not be particularly representative. Try to speak to a range of people: those who have been very successful, and those who’ve been less so.

Don't forget to read the small print

Both parties will be required to sign a Franchise Agreement, so make sure you’ve read all of it and fully understand it before you do. Take note of any upfront fees and always seek independent legal advice before you sign on the dotted line.

We're here to help with specialist support and expertise

We believe in building long-term relationships that make a real difference. With experts across the UK, our franchise team’s commitment means you get the right guidance and support when you need it.

Our franchise team have an excellent understanding of the franchise industry and the economic trends that affect it. They also have an in-depth understanding and experience of local trading environments. By sharing this knowledge with you, we could make a genuine difference to the success of your business.

As well as franchise expertise, we have an experienced business support team on hand 24/7 to help with your general banking needs.

people collaborating
Add your signposting title here… Industry partnerships

We work closely with sector organisations in things like sponsorships of events, awards, and regular participation in networking events and forums. 

Visit there websites to see what they do and how they could support you. 

The British Franchise Association (BFA)

Encouraging Women into Franchising

Services to support you and your business
Be a FreeAgent

FreeAgent is a free cloud based business account software. Use it to help you manage your business accounts and much more.

Learn more about FreeAgent
Financial Health Check

Our free financial health check is a review with one of our highly trained Business Managers. Together we'll identify your business goals and talk about the tools, products and services that can help achieve them.

Book your Financial Health Check
Haydn Thomas, Head of Business Development said:
I’m really proud of the experience and commitment of our dedicated franchise team, they are focused on providing expertise to both franchisees and franchisors to help in all stages of business whether that’s starting up, day to day running of a business or exit planning. It can be difficult knowing how to go about franchising your business or what to do if you are considering buying a franchise, our team have the knowledge and understanding of the sector to help businesses in a really simple way.
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