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Franchising Facts You Will Want To Know

Interesting Information I just read from the BFA and Natwest. Did you know….
4 in 5 new franchises are profitable within two years.

There are over 39,000 businesses in the UK which are part of franchises.

The total economic contribution of the franchise industry now stands at £13.7 billion, up 2.4% on last year’s figure.

The following is based on a Nat West Bank franchise survey:

Management summary

In spite of continuing economic pressures on the economy as a whole, franchising in the UK continues to expand. This year we see:

There are 930 franchise systems in operation in the UK.

  • This is a net change of plus one system on 2011, and is a figure that is an 11% increase in system numbers since the start of the recent recession in 2008
  • 4 in 5 of the franchise systems in the country are now UK owned and run1 in 4 of the franchise systems in the UK export their business model abroad

The total number of people employed in franchising in the UK is 561,000, of which just under half are in full-time employment.

  • This represents a 20% increase in franchise employment over the past 5 years
  • Over a ¼m full-time jobs in franchising in the UK are recorded for the first time ever

The overall contribution of franchising to the UK economy is £13.7 billion; which equates to just under 1% of GDP.

This contribution has grown by 20% over the past 5 years, whilst the overall economy has shrunk 2.5% over the same period.

Between them, the systems in the UK operate a total estimated at 39,000 franchised units, which represents a 7% increase over the past 5 years.

There are reckoned to be 22,400 franchisees in total (as 1 in four run multiple units).

92% of franchised businesses are at least ‘marginally profitable’, with 49% saying they are either quite profitable or very profitable.

88% of franchisors expect improved trading conditions for their own businesses in the coming year. Although somewhat less bullish, still 54% of franchisees are anticipating the next 12 months to be better.


Key Statistics

Generating wealth

The total economic contribution of the franchise industry now stands at £13.7 billion, up 2.4% on last year’s figure.

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