Franchising Facts & Figures

Just wow… you’ll take note of the franchising sector after reading this piece. Before we get to the eye watering facts and figures, it’s imperative that you undertake thorough research before

A) Deciding whether franchising is for you.

B) What Franchise sector is right for you.

&…

C) What franchise offering meets your profile.

Franchising is a truly wonderful concept, that in my opinion is underwhelmingly underrated, how often do you hear franchising pop up into a conversion? And we’re not talking about films or the NFL or come to think of it, any sports team that competes in a ‘world series’ where only one country participates….. . Only joking, we owe a huge amount of gratitude towards the States as they elevated the franchising model to what it is today.

Franchising in its simplistic form is a replication of a business model that has a track record (over an appropriate timescale) of proving profitability and at the same time can be easily replicable. If John sets up a Flower Shop in Plymouth that has proven for 5 years to be profitable, has contracts with large organisations (that could stretch nationwide), has a strong reputation/branding then there’s no reason why John couldn’t enlist the help of an experience franchise consultant to help him through the process of franchising ‘John’s florists’, with the end game of setting up many locations across the UK, including Norwich! Yes, even Norwich. Franchising allows an individual to replicate a proven model and to start trading from day one, with the franchise support and assuming that they’ve received the adequate franchise training from the franchisor.

So now you have a better understanding of what franchising is, let’s get your juices flowing with some tasty facts and figures from the franchise Industry within the last year.

Franchisees running into Profitability –

This figure is currently running at 97%, no I’m not trying to pull a lame joke, that’s the reality of franchising, it’s that good! Let that just sink in for a minute…. 97% of ALL franchisees are running their business with a profit. Just wow. Especially when you compare 30% of new start-ups not making it past the first 12 months. To be honest, this isn’t something that’s just occurred, oh no! Franchises have continuously been running into profitability levels of 90%+ since 2005.

Employment in Franchising -

Franchising contributed to a staggering 621,000 individuals having an income within the UK. It’s certainly doing its part for the UK economy. This is mainly down to the increase in large franchise businesses with larger turnovers, which results in larger staff force. In fact, one-third of franchises now employ 10 or more staff members!

Number of franchisees within the UK –

The total amount of franchised owned business within the UK is currently an eye watering 44,200! Which has seen an increase of 14% in just two years. This shows how popular Franchising is becoming as individuals become more accustomed to the concept of owning their own business through franchising.

Contribution to the UK Economy –

If I haven’t got you hooked yet, then this will definitely grab your attention. There’s a reason why I’ve left this stat until the end… A staggering £15.1 billion was contributed to the UK economy from franchising! Yes, you’ve read that right, a staggering £15.1 billion. This figure is an increase of 10% since the last bfa/Natwest franchise survey was conducted and it demonstrates an 46% increase over the past 10 years. Go Franchising!

Take a look at some of the franchise opportunities we have available on the site and request further information to see what they can offer and whether it’s right for you.

Good luck with your franchising quest.

Source: bfa/Natwest franchise survey 2015