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Franchise Brands PLC (GB:FRAN)
LSE:FRAN
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Franchise Brands (FRAN) AI Stock Analysis

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GB:FRAN

Franchise Brands

(LSE:FRAN)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
152.00p
▲(12.59% Upside)
Franchise Brands scores well due to its strong financial performance, characterized by robust revenue growth and solid profitability margins. The technical analysis indicates a neutral trend, with no significant bullish or bearish signals. However, the stock's valuation is relatively high, which slightly dampens its attractiveness. Overall, the company is well-positioned within its industry, but potential investors should consider the high valuation.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective franchise expansion, supporting long-term business sustainability.
Cash Flow Management
Effective cash flow management enhances financial flexibility, enabling reinvestment in growth opportunities and resilience against economic fluctuations.
Profitability Margins
High profitability margins reflect efficient operations and pricing power, contributing to sustainable earnings and competitive positioning.
Negative Factors
Return on Equity
A lower ROE suggests potential inefficiencies in generating returns on shareholder equity, which could impact investor confidence and capital allocation.
Valuation Concerns
High valuation may limit upside potential and attract scrutiny from value-focused investors, impacting long-term stock performance.
Leverage
While leverage is moderate, any increase could strain financial resources, affecting the company's ability to invest in growth and manage downturns.

Franchise Brands (FRAN) vs. iShares MSCI United Kingdom ETF (EWC)

Franchise Brands Business Overview & Revenue Model

Company DescriptionFranchise Brands plc, through its subsidiaries, engages in franchising and related activities in the United Kingdom and internationally. It provides vehicle repair services, which comprise bumper scuffs, paintwork scratches, minor dents, and alloy wheel repairs under the ChipsAway brand name; oven cleaning services include cleaning of domestic oven brands and models, such as electric and gas ovens, ranges, microwaves, hobs, extractor fans, and barbecues, as well as various removable components consisting of racks and other removable parts under the Ovenclean brand; and various emergency plumbing services under the Metro Plumb brand name. The company also operates dog home boarding franchise services under the Barking Mad brand; offers drain clearance solutions to commercial customers, including facilities management, construction, manufacturing, education, retail, insurance, water utilities, and public sectors under the Metro Rod brand name; and engages in the design. installation, and maintenance of adoptable and non-adoptable pump stations under the Willow Pumps brand name. It operates 430 franchisees. The company was formerly known as FB Holdings plc. Franchise Brands plc was founded in 2008 and is based in Macclesfield, the United Kingdom.
How the Company Makes MoneyFranchise Brands generates revenue primarily through franchise fees and royalties from its franchise partners. The company typically charges an initial franchise fee when a new franchisee joins the network, which provides an upfront revenue stream. Additionally, FRAN earns ongoing royalties based on a percentage of the franchisee's gross sales, creating a consistent revenue source tied to the performance of its franchise network. The company may also generate income through training and support services, marketing fees, and sales of proprietary products or supplies to its franchisees. Strategic partnerships with suppliers and service providers further enhance its revenue potential, allowing FRAN to offer competitive pricing and additional value to its franchisees while capturing a share of the supply chain.

Franchise Brands Financial Statement Overview

Summary
Franchise Brands demonstrates strong financial performance with consistent revenue growth and solid profitability margins. The company maintains a stable balance sheet with moderate leverage, and its cash flow position is robust, supporting future growth opportunities. While ROE could be improved, the company's financial fundamentals are sound, positioning it well within the specialty business services industry.
Income Statement
85
Very Positive
Franchise Brands has shown robust revenue growth, with a 14.81% increase from the previous year. The gross profit margin is strong at 59.85%, and the net profit margin has improved significantly, reflecting enhanced profitability. EBIT and EBITDA margins are healthy, indicating efficient operations and strong earnings before interest, taxes, depreciation, and amortization.
Balance Sheet
78
Positive
The company maintains a solid equity position with an equity ratio of 58.55%, indicating financial stability. The debt-to-equity ratio is moderate at 0.40, suggesting a balanced approach to leverage. Return on equity is reasonable at 3.33%, though there's room for improvement in maximizing shareholder returns.
Cash Flow
80
Positive
Franchise Brands has displayed strong cash flow management, with a notable 48.08% growth in free cash flow. The operating cash flow to net income ratio is impressive at 3.86, indicating efficient cash generation relative to earnings. Free cash flow to net income is also healthy, reflecting effective capital expenditure management.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue139.21M121.27M92.73M57.69M49.29M
Gross Profit83.32M59.07M30.79M21.93M20.93M
EBITDA32.81M23.01M14.25M5.87M5.88M
Net Income7.28M3.04M8.13M4.23M2.79M
Balance Sheet
Total Assets373.30M382.44M132.44M67.27M68.55M
Cash, Cash Equivalents and Short-Term Investments12.92M12.28M10.80M9.05M13.20M
Total Debt87.98M94.56M2.46M2.53M8.24M
Total Liabilities154.74M168.05M29.40M19.94M24.71M
Stockholders Equity218.56M214.39M103.04M47.33M43.84M
Cash Flow
Free Cash Flow25.02M16.89M6.27M5.12M4.46M
Operating Cash Flow28.16M19.95M7.73M7.27M5.24M
Investing Cash Flow-2.71M-51.44M2.56M-3.02M-779.00K
Financing Cash Flow-24.72M33.11M-8.74M-8.40M7.06M

Franchise Brands Technical Analysis

Technical Analysis Sentiment
Negative
Last Price135.00
Price Trends
50DMA
136.30
Negative
100DMA
142.54
Negative
200DMA
142.31
Negative
Market Momentum
MACD
-0.23
Positive
RSI
44.18
Neutral
STOCH
9.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRAN, the sentiment is Negative. The current price of 135 is below the 20-day moving average (MA) of 137.01, below the 50-day MA of 136.30, and below the 200-day MA of 142.31, indicating a bearish trend. The MACD of -0.23 indicates Positive momentum. The RSI at 44.18 is Neutral, neither overbought nor oversold. The STOCH value of 9.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FRAN.

Franchise Brands Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
212.82M21.8241.99%3.01%16.29%22.80%
73
Outperform
330.61M12.895.28%13.93%-0.78%
72
Outperform
£261.85M33.093.61%1.55%15.22%1.23%
65
Neutral
183.88M29.047.68%3.55%12.41%331.52%
64
Neutral
362.85M38.635.30%2.26%6.90%
59
Neutral
299.16M18.3138.37%-4.87%
63
Neutral
$10.79B15.437.44%2.01%2.89%-14.66%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:FRAN
Franchise Brands
132.00
-16.29
-10.99%
GB:BEG
Begbies Traynor
115.50
16.88
17.12%
GB:CPI
Capita plc
263.00
-36.10
-12.07%
GB:RST
Restore
265.00
25.07
10.45%
GB:RWS
RWS Holdings
89.40
-66.00
-42.47%
GB:KEYS
Keystone Law Group Plc
671.00
118.22
21.39%

Franchise Brands Corporate Events

Business Operations and StrategyDelistings and Listing Changes
Franchise Brands Delays Main Market Listing Until 2027
Neutral
Aug 5, 2025

Franchise Brands has announced that it does not anticipate listing on the Main Market of the London Stock Exchange until Q3/Q4 2027, following inquiries from shareholders. The decision to delay is contingent on the status of AIM and potential fiscal or regulatory changes, impacting the company’s strategic planning and potentially affecting stakeholders’ expectations.

The most recent analyst rating on (GB:FRAN) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Franchise Brands stock, see the GB:FRAN Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Franchise Brands Grants Share Options to CFO
Positive
Jul 31, 2025

Franchise Brands has granted an option over 180,000 Ordinary Shares to its CFO, Andrew Mallows, under its Employee Share Option Plan. The option is contingent on meeting specific performance criteria related to earnings per share growth over the next three years. This grant is part of an annual share option allocation to senior employees, highlighting the company’s strategy to incentivize performance and align management interests with shareholder value.

The most recent analyst rating on (GB:FRAN) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Franchise Brands stock, see the GB:FRAN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Franchise Brands Reports Resilient H1 2025 Performance Amid Challenging Conditions
Positive
Jul 30, 2025

Franchise Brands plc reported a resilient performance in the first half of 2025, with system sales increasing by 2.5% to £209.4m and profit before tax rising by 9.6% to £11.7m. Despite challenging macroeconomic conditions, the company benefited from international diversification and strong cash generation, which supported deleveraging and increased adjusted earnings per share by 7.8%. The company is progressing with strategic initiatives, including the integration of major acquisitions and the implementation of Group-wide technology projects, to strengthen its business for future growth. The outlook for the second half remains cautious, with expectations for adjusted EBITDA to be similar to 2024, while strong cash flow generation continues to support investment and debt reduction.

The most recent analyst rating on (GB:FRAN) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Franchise Brands stock, see the GB:FRAN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Franchise Brands to Present Interim Results via Investor Meet Company
Neutral
Jul 21, 2025

Franchise Brands plc announced that its Executive Chairman, Stephen Hemsley, and Group CEO, Peter Molloy, along with the management team, will present the company’s interim results on August 1, 2025, via the Investor Meet Company platform. This presentation is open to existing and potential shareholders, allowing them to submit questions before and during the event. This initiative aims to enhance transparency and engagement with investors, potentially strengthening the company’s market position and stakeholder relations.

The most recent analyst rating on (GB:FRAN) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Franchise Brands stock, see the GB:FRAN Stock Forecast page.

Financial Disclosures
Franchise Brands to Announce Interim Results for H1 2025
Neutral
Jul 7, 2025

Franchise Brands plc announced it will release its interim results for the six months ending June 30, 2025, on July 30, 2025. The company will hold a presentation for analysts and investors, indicating a commitment to transparency and engagement with stakeholders, potentially impacting its market perception and investor confidence.

The most recent analyst rating on (GB:FRAN) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Franchise Brands stock, see the GB:FRAN Stock Forecast page.

Business Operations and StrategyDelistings and Listing Changes
Franchise Brands Joins FTSE AIM UK 50 Index
Positive
Jun 23, 2025

Franchise Brands plc has been included in the FTSE AIM UK 50 Index, marking a significant milestone in its growth journey. This inclusion reflects the company’s substantial expansion since its IPO in 2016, now boasting a market capitalization of nearly £300 million. The company is committed to further growth through its ‘One Franchise Brands’ initiative, aiming to integrate and maximize opportunities across its brands, thereby delivering sustainable growth for stakeholders.

The most recent analyst rating on (GB:FRAN) stock is a Buy with a £300.00 price target. To see the full list of analyst forecasts on Franchise Brands stock, see the GB:FRAN Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 20, 2025