bfa claims UK franchise industry is operating at an all-time high with 97% of franchisees having reported profitability
The UK’s franchise sector is operating at record levels with all-time highs reported in turnover, employment and numbers of franchisee-owned businesses in 2015, a new report has found.
The British Franchise Association(bfa)/NatWest Franchise Survey 2015 concluded that franchising contributed £15.1bn to the economy last year with over 44,000 franchisee-owned businesses now running across the UK; employing up to 621,000 people.
Furthermore, the report stated that 97% of the franchises surveyed were profitable, with over half of all UK franchises achieving turnover in excess of £250,000.
The report also suggested that the number of young people entering the franchise sector is increasing, with a fifth of new franchisees (those started in the last two years) under 30 years of age.
A continued low rate of commercial failure was also evident in the report, with less than 1% of franchises closing their doors for this reason last year.
In addition, home-grown success is converting into export success with four out of every five franchise brands in the UK domestically owned, and 38% expanding their business model overseas and a further 11% considering doing so in the future.
Brian Smart, director general of the bfa, said: “Good franchising continues to deliver serious dividends for Britain’s economy, creating businesses, jobs and wealth for local communities across the country.’’
Smart added: “The outstanding performance of the sector, in good economic times and bad, shows the power of the franchise model and its impact on the UK’s business landscape increases each year.”
