Franchise industry soars in value to £12.4bn
Nine in 10 franchise outlets are profitable
The franchising industry is now worth £12.4bn to the UK economy, having increased its turnover by £600m in the past twelve months.
The figures were included in a new report from NatWest and the British Franchise Association, which concluded that Britain’s franchising revenues have reached an all-time high.
While turnover has risen by 5% in the past 12 months, the number of UK-based companies franchising their operations has increased by 6.5% – almost 900 companies now extend their brand through licensed independent retailers.
Total employment across the franchise industry now exceeds 520,000, and the vast majority of outlets are profitable; nine out of 10 of the franchise operators who responded to the survey said they are currently turning profits.
The report also found that catering is leading the way in the introduction and exploitation of franchising. For example, pizza delivery chain Domino’s now encompasses more than 650 franchised premises across the country.
Responding to the report, Brian Smart, director general of the BFA, told Startups: “Yet again franchising has demonstrated its inherent tenacity and stability, despite a tough climate last year.
“This means many more sustainable business start-ups and jobs have been created by ethical franchising – further helping the UK economy get back on its feet”.