As mentioned, you buy the license to work in a set territory. Costs vary as do the packages that are on offer, but an initial investment of £30,000 is quite common.
A Reactfast franchise costs £29,500 plus VAT and includes the territory, full plumbing training, marketing pack via an intensive eight-week training programme. You will also need to purchase a vehicle and tools and, according the British Franchise Association (BFA), minimum investment will be just under £43,000.
Plumblocal charge £12,000 plus VAT for the franchise fee and their offer includes a three-month training programme as well as the territory. The BFA says that minimum investment is £27,500 for this franchise.
Drain Doctors charge about £30,000 for the licence to the territory, however their training only lasts one week and is centred on running the business not plumbing.
They do, however, offer plumbing training while you are working although it is expected that you will employ staff to do most of the work for you. The BFA say that minimum investment will be £35,000.
There are other plumbing franchises out there and so it is best to research as much as possible to find the one that is right for you.
Do not make a decision based on cost alone, as it is far more important to find a business that you really want to run.
If you enjoy running the business then you are far more likely to be successful at it and will quickly make back your investment.
Training courses can be attractive and getting a plumbing qualification is an advantage. However, you will not be working when you are doing this and not all the courses are available in your area. So additional rent will be another cost.
Many franchisees take out loans in order to buy their license. Banks are often more likely to put money into franchisee than they are a new business as they are deemed to be a lower risk. Also, many franchises have agreements with banks and so they will be able to advise you on where to go.
However, make sure you fully understand all the terms and conditions before signing an agreement with the franchisor.