Franchise Brands PLC (GB:FRAN)
LSE:FRAN
Top Page
Franchise Brands
(LSE:FRAN)
Select Model
Select Model
Rating:60Neutral
Price Target:
124.00 p
▼(-10.14% Downside)
Action:DowngradedDate:03/26/26
The score is primarily supported by solid financial performance (growth, improving earnings, and strong operating/free cash flow), tempered by higher leverage versus prior years. Technicals are a key drag, with price below major moving averages and negative MACD. Valuation is broadly fair with a modest dividend yield.
Positive Factors
Franchise-led recurring revenue
The group's franchise model generates recurring, asset-light cash flows via upfront fees, ongoing royalties and service sales, plus some company-owned unit revenue. This structure supports scalable growth with lower capex, steady royalty income and durable margin potential over time.
Negative Factors
Elevated and stepped-up leverage
A large increase in absolute debt since 2021 materially raises refinancing and interest rate risk and reduces balance sheet flexibility. Higher leverage constrains M&A, buybacks or reinvestment options and makes the business more sensitive to any deterioration in cash flow or margins.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise-led recurring revenue
The group's franchise model generates recurring, asset-light cash flows via upfront fees, ongoing royalties and service sales, plus some company-owned unit revenue. This structure supports scalable growth with lower capex, steady royalty income and durable margin potential over time.
Read all positive factors
Franchise Brands (FRAN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£229.12M
Dividend Yield1.52%
Average Volume (3M)155.20K
Price to Earnings (P/E)29.9
Beta (1Y)0.51
Revenue Growth15.22%
EPS Growth1.23%
CountryUK
Employees646
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.03
Shares Outstanding193,784,070
10 Day Avg. Volume150,954
30 Day Avg. Volume155,200
Financial Highlights & Ratios
PEG Ratio1.27
Price to Book (P/B)1.21
Price to Sales (P/S)1.89
P/FCF Ratio11.76
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£185.00Price Target Upside34.06% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.1
Revenue Forecast (FY)£146.63M
Franchise Brands Business Overview & Revenue Model
Company Description
Franchise 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...
How the Company Makes Money
Franchise Brands primarily makes money through a franchise-led model combined with company-owned operations in certain brands and territories. Key revenue streams typically include: (1) upfront franchise fees earned when new franchisees (or master...
Franchise Brands Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 142.15M | 139.21M | 121.27M | 92.73M | 57.69M |
| Gross Profit | 68.32M | 83.32M | 68.23M | 30.79M | 21.93M |
| EBITDA | 34.37M | 32.81M | 23.01M | 14.25M | 5.87M |
| Net Income | 8.98M | 7.28M | 3.04M | 8.13M | 4.23M |
Balance Sheet | |||||
| Total Assets | 372.67M | 373.30M | 382.44M | 132.44M | 67.27M |
| Cash, Cash Equivalents and Short-Term Investments | 15.29M | 12.92M | 12.28M | 10.94M | 9.05M |
| Total Debt | 80.51M | 87.98M | 94.56M | 2.46M | 2.53M |
| Total Liabilities | 151.16M | 154.74M | 168.05M | 29.40M | 19.94M |
| Stockholders Equity | 221.51M | 218.56M | 214.39M | 102.38M | 47.33M |
Cash Flow | |||||
| Free Cash Flow | 22.81M | 25.02M | 16.89M | 6.27M | 5.12M |
| Operating Cash Flow | 23.80M | 28.16M | 19.95M | 7.73M | 7.27M |
| Investing Cash Flow | -2.55M | -2.71M | -51.44M | 2.56M | -3.02M |
| Financing Cash Flow | -18.82M | -24.72M | 33.11M | -8.74M | -8.40M |
Franchise Brands Technical Analysis
Negative
138.00
Price Trends
128.49
Negative
131.98
Negative
133.59
Negative
Market Momentum
-3.59
Positive
44.00
Neutral
47.48
Neutral
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 138 is above the 20-day moving average (MA) of 124.19, above the 50-day MA of 128.49, and above the 200-day MA of 133.59, indicating a bearish trend. The MACD of -3.59 indicates Positive momentum. The RSI at 44.00 is Neutral, neither overbought nor oversold. The STOCH value of 47.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:FRAN.
Franchise Brands Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £2.09B | 13.52 | 20.62% | 2.58% | 11.42% | -17.18% | |
65 Neutral | £11.50B | 31.67 | 5.93% | 1.68% | -1.58% | -34.64% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
60 Neutral | £229.12M | 29.89 | 4.06% | 1.52% | 15.22% | 1.23% | |
54 Neutral | £325.60M | 275.23 | 0.58% | 2.31% | 6.90% | 145.00% | |
42 Neutral | £1.70B | 170.75 | ― | 0.36% | -2.24% | ― | |
41 Neutral | £320.29M | -2.81 | -142.88% | ― | -4.87% | ― |
* Industrials Sector Average
GB:FRAN
Franchise Brands
119.00
-28.45
-19.29%
GB:CPI
Capita plc
267.50
60.50
29.23%
GB:MTO
Mitie Group plc
165.40
52.56
46.58%
GB:RTO
Rentokil Initial
457.60
116.27
34.06%
GB:RST
Restore
238.00
11.27
4.97%
GB:IWG
IWG plc
173.80
-12.79
-6.86%
Franchise Brands Corporate Events
Business Operations and Strategy
Franchise Brands Executive Chairman Increases Stake to 11.85% After Share Purchase
Positive
Mar 26, 2026
Franchise Brands plc disclosed that Executive Chairman Stephen Hemsley purchased 72,500 ordinary shares in the company on 25 March 2026 at a weighted average price of 116.1379 pence per share. Following this transaction, Hemsley’s holding ha...
Business Operations and StrategyStock BuybackDividendsFinancial Disclosures
Franchise Brands Delivers Resilient 2025, Cuts Debt and Plans £10m Buy-back
Positive
Mar 25, 2026
Franchise Brands reported a resilient 2025 performance, with system sales up 2% to £435m, statutory revenue up 2% to £142.2m and adjusted EBITDA broadly flat at £35.2m, while adjusted profit before tax rose 12% and basic EPS climbed...
Business Operations and StrategyFinancial Disclosures
Franchise Brands Sets March Investor Presentation for 2025 Annual Results
Neutral
Mar 18, 2026
Franchise Brands plc will publish its annual results for the year ended 2025 on 25 March 2026 and will follow up with a live online investor presentation on 31 March 2026, hosted via the Investor Meet Company platform by Executive Chairman Stephen...
Business Operations and StrategyFinancial Disclosures
Franchise Brands Sets Date to Unveil 2025 Final Results
Neutral
Mar 5, 2026
Franchise Brands plc, the FTSE AIM-listed international multi-brand franchise group focused on B2B van-based services, operates seven franchise brands across 10 countries with a network of more than 600 franchisees. The company’s market-lead...
Business Operations and StrategyFinancial Disclosures
Franchise Brands sets date for 2025 final results and investor presentation
Neutral
Mar 5, 2026
Franchise Brands plc has announced that it will publish its final results for the year ended 31 December 2025 on 25 March 2026, accompanied by an analyst and investor presentation at broker Stifel’s London offices with a live webcast availab...
Business Operations and StrategyStock BuybackFinancial Disclosures
Franchise Brands Posts Record Sales, Unveils £10m Share Buy-Back as Debt Falls
Positive
Jan 28, 2026
Franchise Brands plc said it expects adjusted EBITDA for 2025 to be in line with market expectations after delivering record system sales, up 2% despite a difficult macroeconomic backdrop, underpinned by resilient demand for essential reactive and...
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.