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Franchise Brands
(LSE:FRAN)
Select Model
Select Model
Rating:65Neutral
Price Target:
168.00 p
▲(16.67% Upside)
Action:Reiterated
Date:05/13/26
The score is driven primarily by solid financial performance (growth, profitability improvement, and strong cash generation) tempered by increased leverage. Technicals are supportive on trend but look overextended, while valuation appears reasonable with a modest dividend.
Positive Factors
Franchise-led Business Model
A franchise-led model yields recurring royalty and fee income with low incremental capital needs, enabling scalable growth across brands. Combined company-owned units diversify revenue capture and provide control points for quality and expansion, supporting durable cash generation and margin leverage.
Negative Factors
Material Increase in Leverage
A large step-up in absolute debt elevates financial risk and reduces strategic flexibility. Higher leverage increases interest and covenant exposure, constrains ability to pursue M&A or buybacks, and makes cash flow more sensitive to downturns, weakening the balance sheet buffer over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Franchise-led Business Model
A franchise-led model yields recurring royalty and fee income with low incremental capital needs, enabling scalable growth across brands. Combined company-owned units diversify revenue capture and provide control points for quality and expansion, supporting durable cash generation and margin leverage.
Read all positive factors
Franchise Brands (FRAN) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£285.92M
Dividend Yield1.61%
Average Volume (3M)155.20K
Price to Earnings (P/E)26.2
Beta (1Y)0.22
Revenue Growth5.44%
EPS Growth37.71%
CountryUK
Employees606
SectorIndustrials
Sector Strength72
IndustrySpecialty Business Services
Share Statistics
EPS (TTM)0.06
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 Upside28.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)0.1
Revenue Forecast (FY)£147.05M
Franchise Brands Business Overview & Revenue Model
Company Description
Franchise Brands plc manages a collection of franchising and associated business operations both within the United Kingdom and globally. The company offers a diverse range of services via its various brands. For automotive care, ChipsAway provides...
How the Company Makes Money
Franchise Brands makes money primarily by operating franchise systems and, in some cases, company-operated locations. Key revenue streams typically include: (1) franchise fees (initial fees paid by new franchisees for the right to operate under a ...
Franchise Brands Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
58
Neutral
Cash Flow
67
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 147.38M | 142.15M | 139.21M | 121.27M | 92.73M | 57.69M |
| Gross Profit | 69.43M | 68.32M | 83.32M | 68.23M | 30.79M | 21.93M |
| EBITDA | 34.02M | 29.48M | 32.81M | 23.01M | 14.25M | 5.87M |
| Net Income | 10.86M | 8.98M | 7.28M | 3.04M | 8.13M | 4.23M |
Balance Sheet | ||||||
| Total Assets | 377.05M | 372.67M | 373.30M | 382.44M | 132.44M | 67.27M |
| Cash, Cash Equivalents and Short-Term Investments | 18.37M | 15.29M | 12.92M | 12.28M | 10.94M | 9.05M |
| Total Debt | 79.95M | 80.51M | 87.98M | 94.56M | 2.46M | 2.53M |
| Total Liabilities | 152.89M | 151.16M | 154.74M | 168.05M | 29.40M | 19.94M |
| Stockholders Equity | 224.16M | 221.51M | 218.56M | 214.39M | 102.38M | 47.33M |
Cash Flow | ||||||
| Free Cash Flow | 23.04M | 22.81M | 25.02M | 16.89M | 6.27M | 5.12M |
| Operating Cash Flow | 24.11M | 23.80M | 28.16M | 19.95M | 7.73M | 7.27M |
| Investing Cash Flow | -3.54M | -2.55M | -2.71M | -51.44M | 2.56M | -3.02M |
| Financing Cash Flow | -9.97M | -18.82M | -24.72M | 33.11M | -8.74M | -8.40M |
Franchise Brands Technical Analysis
Positive
144.00
Price Trends
144.45
Positive
138.47
Positive
134.73
Positive
Market Momentum
1.28
Negative
57.35
Neutral
51.67
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:FRAN, the sentiment is Positive. The current price of 144 is below the 20-day moving average (MA) of 145.00, below the 50-day MA of 144.45, and above the 200-day MA of 134.73, indicating a bullish trend. The MACD of 1.28 indicates Negative momentum. The RSI at 57.35 is Neutral, neither overbought nor oversold. The STOCH value of 51.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
65 Neutral | £285.92M | 26.23 | 4.87% | 1.74% | 5.44% | 37.71% | |
65 Neutral | £2.56B | 31.95 | 15.86% | 2.15% | 10.55% | -19.05% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
62 Neutral | £9.05B | 25.54 | 5.82% | 2.15% | -0.18% | 39.04% | |
60 Neutral | £399.11M | 142.65 | 1.30% | 2.46% | 8.11% | -69.68% | |
44 Neutral | £1.80B | 140.19 | -6.90% | 0.51% | -2.90% | -2.16% | |
42 Neutral | £316.21M | -1.58 | -677.10% | ― | -16.13% | -1315.87% |
* Industrials Sector Average
GB:FRAN
Franchise Brands
148.75
16.14
12.17%
GB:CPI
Capita plc
264.50
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8.85%
GB:MTO
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206.40
64.39
45.34%
GB:RTO
Rentokil Initial
360.30
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-1.55%
GB:RST
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301.00
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GB:IWG
IWG plc
185.70
-40.86
-18.03%
Franchise Brands Corporate Events
Business Operations and StrategyExecutive/Board ChangesDividendsFinancial Disclosures
Franchise Brands Returns to Stronger Growth as Cash Generation Fuels Deleveraging and Dividend Rise
Positive
Jul 29, 2026
Franchise Brands plc reported a return to stronger growth in the first half of 2026, driven by record system sales across its core B2B businesses and the increasing benefits of its One Franchise Brands strategy. The group’s international por...
Business Operations and StrategyFinancial Disclosures
Franchise Brands to Host Investor Presentation on Interim Results
Neutral
Jul 15, 2026
Franchise Brands plc, a FTSE AIM‑listed platform of international B2B franchise brands, specialises in essential services delivered through a mobile workforce for commercial customers. The Group scales proven franchise concepts, leveraging s...
Business Operations and StrategyFinancial Disclosures
Franchise Brands Sets Date for Interim Results and Investor Briefing
Neutral
Jul 9, 2026
Franchise Brands plc, a FTSE AIM UK 50 company, concentrates on acquiring, developing and scaling proven B2B franchise businesses that deliver essential services through a mobile workforce. Its portfolio includes market-leading brands such as Pirt...
Business Operations and StrategyShareholder Meetings
Franchise Brands Unlocks £131m in Reserves with Share Premium Cancellation
Positive
Jun 10, 2026
Franchise Brands plc has completed the cancellation of its share premium account following High Court approval and registration with the UK Registrar of Companies. The move, endorsed by shareholders at a recent general meeting, creates approximate...
Business Operations and StrategyExecutive/Board Changes
Franchise Brands Grants EPS-Linked Share Options to CFO Neil Miller
Positive
Jun 8, 2026
Franchise Brands has granted Chief Financial Officer and executive director Neil Miller options over 50,000 ordinary shares, aligned with his commitment to purchase up to 50,000 shares on the market within six months. The options, issued under the...
Business Operations and StrategyExecutive/Board Changes
Franchise Brands Grants Performance-Linked Share Options to New CFO
Positive
May 26, 2026
Franchise Brands plc has appointed Neil Miller as Executive Director and Chief Financial Officer and granted him options over 390,000 ordinary shares under its Employee Share Option Plan. The options, exercisable between the third and tenth annive...
Business Operations and StrategyExecutive/Board Changes
Franchise Brands reshapes top team to drive IT-led integration
Positive
May 18, 2026
Franchise Brands has appointed Neil Miller as chief financial officer and board director from 26 May 2026, bringing three decades of experience in listed, private equity-backed and multinational industrial and FMCG groups. Former CFO Andrew Mallow...
Business Operations and StrategyShareholder Meetings
Franchise Brands Wins Shareholder Backing for Share Premium Cancellation
Positive
Apr 30, 2026
Franchise Brands plc said shareholders have overwhelmingly approved a special resolution at a general meeting to cancel the amount standing to the credit of the company’s share premium account, with 100% of votes cast in favour. The move is ...
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
Franchise Brands AGM Backs Core Resolutions but Rejects Pre-emption Proposals
Neutral
Apr 30, 2026
Franchise Brands plc reported the results of its Annual General Meeting, where shareholders approved the receipt of the 2025 annual report and financial statements, a final dividend, the re-election of all directors, the reappointment and remunera...
Business Operations and StrategyFinancial Disclosures
Franchise Brands posts record Q1 system sales as Filta and water services drive growth
Positive
Apr 30, 2026
Franchise Brands reported a reacceleration in system sales in the first quarter of 2026, with overall group sales up 4% versus 2% in 2025, underscoring the resilience of its essential B2B services and the benefits of its diversified international ...
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.