It’s safe to say that starting a franchise business is comparatively less risky than launching a new business. However, you’ll need to first understand how to start, where to look for the right franchise opportunities and invest in a successful brand. So, don’t be too relaxed because relocating to the UK as an investor isn’t as easy as it sounds, well, if you don’t know what you’re doing that is. Luckily, we’re going to help you navigate through the complexities of the process.
In addition, franchising in the UK has steadily become a popular option for investors. It gives them the chance to immediately establish and run a business with the help of the franchisor (the actual owner of the brand). So, it’s faster than starting your own business. Furthermore, there are just a ton of franchising opportunities in the UK. Here’s a short list of some franchise industries you can consider:
- Fast food and cafes
- Cleaning and household maintenance services
- Real estate and property management services
- Tutoring franchises
- Home improvement and renovation
And many more.
Benefits of Owning a Franchise Vs. Independent Business
While the central concept of running a franchise and an independent business remains the same, there’s just one major difference. And that’s the fact that while you have total control of running your business, overseeing all operations, hiring personnel, finances, etc. In a franchise, you have partial autonomy. For instance, it’s the actual franchisor who is going to tell you how to market the products, how to train the employees, and how to ensure you continue to improve its reputation and long-term success.
In light of this here are some benefits of running your business:
- You are your own boss.
- You are in control of the finances.
- You get to choose what talent to hire.
- You get to be the HR of the company.
- You get to develop and implement the right marketing strategies.
- You’re the innovator.
Now let’s take a look at some benefits of running a franchise:
- Financing can be simpler to establish because you already have access to a business and marketing plan that you can show to the investors.
- Leasing a location could be potentially more cost-effective.
- The franchisor will provide you with the complete list of any business assets and equipment you require.
- You can essentially start generating revenue right off the bat and enjoy a profitable lifestyle.
Visa Options for Foreign Franchise Investors
While there are different types of business and employment visa options to choose from for relocating to the UK, when it comes to running or owning a business, you should consider the Self-Sponsorship Visa. It’s the best way to come to the UK under the Skilled Worker category. The Self-Sponsorship Visa will allow you to own a franchise or run your own business in the UK. Plus, the visa also enables the individual to own shares in the company and there’s no fixed investment quota required.
Step-by-Step Guide to Relocating to the UK
Find the Right Visa Type
There are different types of visas you can apply for depending on your objective and reasons to move to the UK, for example:
- Innovator visa
- Self-Sponsorship visa
- Skilled-worker visa.
- International sportsperson visa
You need to apply for the correct visa, which should be in line with your objectives to acquire permanent resident status. You could also get in touch with a reputed visa assistance company in your region.
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Get All Your Documents in Order
To apply for the visa, you must gather all the necessary documents and information required by the British Embassy located in your locality. The process can take a few weeks or months to complete after which you’ll get a response.
Open a Bank Account
Banking is pretty easy in the UK because there are a ton of international banks operating there, which also means you may find your local bank as well. But regardless, you should quickly open an account, especially if you’re in the UK for business.
Understanding Taxes as a UK Franchise Owner
As a franchise owner in the UK, you must consider a variety of different tax implications of running a franchise business. For instance, as a franchise owner, you’ll need to make VAT (value-added tax) payments four times every year. The standard VAT rate for businesses in the UK is 20% on total sales and specific purchases.
Moreover, being self-employed individuals, you’ll also have to make NIC (National Insurance Contributions) payments, which typically cover pensions, unemployment, and illness. The standard NIC rate for business is 13.8%.
So, if you’re planning to move to the UK and start a franchise business, One World can provide you with comprehensive transition support. Our networking resources, documentation expertise, and connections with international franchisors give us an edge in offering new or potential franchisees a multifaceted and streamlined way of helping them move to the UK, find the best locations for the franchise, hire the right people, help with visa processing, and develop the necessary funding strategies you may require to start a business.
Start your business venture with OneWorld!