Franchising key facts
Modern franchising is home to a vast array of business sectors, both B2B and B2C, blue collar and white collar, from home-based operations to some of the world's most recognised brands. The chances are that most people use the services of a franchise business each week etiher personally or professionally, even if they don't realise it at the time.
The British Franchise Association’s list of accredited members demonstrates the scope of business types in franchising.
And as a sector, it's evidenced considerable growth where others struggled during the downturn. From 2008 to mid-2013, while the UK economy shrank by 2.5 percent, franchising performed remarkably: revenues up 20 percent; the number of franchisee businesses up 7 percent; and 11 percent more brands using franchising as their expansion model. It's a substantial part of the economy, contributing just under 1 percent of UK GDP in 2013.
The following statistics, from the NatWest/bfa Franchise Survey 2013, show the current helath of UK franchising:
Franchise industry statistics
Industry annual turnover: £13.7bn
Number of franchisor brands operating in the UK: 930
Number of franchisee outlets: 39,000
Number of people employed in franchising: 561,000
Percentage of units profitable (including new businesses): 92%
This has grown from an industry that 20 years ago had a turnover of just over £5 billion, had 379 different brands and represented 18,300 franchisee outlets.
See the full overview of the NatWest bfa Franchise Survey