Module 4 – UK Franchise Market – Key Facts
The UK franchise market is stable and growing with more jobs and wealth being created than ever before. The growth of the sector in recent years has been spurred by entrepreneurs with successful businesses who want to grow but do not have the capital required to develop a centralised company owned operation. Whereas substantial investment is still required to develop a franchise operation, it can often be more accessible and devolved way of developing a business.
Below are a series of Key Facts taken from a recent franchise survey by the British Franchise Association:[1]
- £15 Billion UK industry
- Growth of 20% since 2008-2013, compared to 2.5% contraction in UK economy for the same period
- 930 franchise systems operating in the UK (11% increase since 2008)
- Nearly 44,000 franchise units operating in the UK (22,400 franchisees)
- Employs over 620,000 people (20% increase since 2008)
- 80-90% of franchisees have satisfactory relations with their franchisor
- Around 1-2% close down due to commercial failure (8% UK business average)
- Around 40% operate from home or from a vehicle
These series of key franchise facts highlight that looking at business format franchising by way of starting a business is not only a proven way to go into business but is increasingly becoming more common place and accepted within the UK.
Look forward to the next Module 5 – Components of the Franchisor and Franchisee relationship at start-up and the Franchise Fee
FranchisingWorks provide FREE support throughout the UK to individuals and groups looking to start a franchise business that has been approved on our programme. To book a no obligation and FREE consultation email info@franchisingworks.org or call 01614081313
[1] Natwest BFA Franchise Survey 2013 http://www.leathesprior.co.uk/assets/cms_page_media/2014/2/18/Natwest%20bfa%20Franchise%20Survey%202013.pdf