Franchising grows twice as fast as UK economy

The much anticipated 2007 NatWest/British Franchise Association (bfa) survey is now out and reveals that the franchise sector is worth a record £10.8 billion and has grown twice as fast as the UK economy.

Commenting on the new report, Dan Archer of the bfa says, ‘The growth in turnover by £500 million is testimony to the position of franchising as an important contributor to the UK economy. There are more people expanding their business through franchising, more starting their own business through franchising and more people employed because of franchising, signifying the impact the sector has both at a national and local level.’

Following on from last year’s exceptional performance, the industry has gone on to report steady, stable growth as the market shows signs of maturity.

The sector has now grown a staggering 44 per cent in ten years, taking the total number of franchise outlets up to nearly 34,000 and the number of systems up to 781. As the sector grows in size so does the strength of its success, with an impressive 93 per cent making a profit. Turnover per franchising unit is up to £323,000. Over the last decade the increase in turnover for the industry as a whole has rocketed by 83 per cent.

The growth in the sector through the number of systems and units operating in the UK today means that franchising now employs 371,600 people. Dan Archer comments, ‘The franchise sector remains a significant employer and, last year alone, created 7,000 more jobs in the UK. While we continue to hear about redundancies in the media, it seems that franchising is not only helping people realise their dream of self-employment but also has an impact on job creation, helping to plug the gap created by corporate redundancies.’

For prospective franchisees it is important to carry out thorough research on the franchise market and the industries you may be interested investing in. An ideal way of doing this is by referring to the annual NatWest/bfa survey, which contains the latest statistics on franchising in the UK. Now in its 23rd year, this survey is the most established and reliable source for data on franchising trends.

The annual NatWest/bfa survey is available to purchase from the bfa’s bookshop online at www.thebfa.org or by calling 01491 578 050