Franchising contributed £15.1bn to the economy last year and employs 621,000 people, according to the independently researched British Franchise Association/NatWest Franchise Survey 2015. Both figures are up more than 10 per cent since 2013.
“Established trends of strong profitability and very low failure rates over the last 20 years highlight the benefit of self-employment through franchising, a path that more and more individuals are taking,” said Brian Smart, Director General of the British Franchise Association.
The number of franchisee-owned businesses topped 44,000 in 2015 and the performance of those businesses set new benchmarks, with 97 per cent reporting profitability and over half turning over in excess of £250,000.
Franchise business Home Instead Senior Care – the UK’s leading provider of home care for older people – is one such success story. The company has seen substantial growth since it was founded in the UK in 2005 and now delivers 5 million hours of high quality homecare through a network of 170 local franchise teams, employing 8,000 CAREGivers.
The £80m turnover business is led by husband and wife entrepreneurs Trevor and Sam Brocklebank, who founded the business with a mission to ‘change the face of ageing’ in the UK by raising standards of home care.
“This new report confirms our own experience that there are huge opportunities in the franchise sector,” said Trevor. “I believe the growth of the Home Instead model is due to the dedication of our franchisees to delivering the highest quality homecare for older people. We call it care that passes the mum test. This means a dignified standard of care that you would want your loved one, and indeed yourself, to receive in old age.”
As a management franchise, Home Instead looks for a special kind of person to join its brand, someone who feels passionate about the delivery of care to older people the ‘Home Instead Way’.
In 2016, the company is seeking the next generation of ‘caring entrepreneurs’ to help achieve its mission to change the face of ageing, with the aim of achieving a £140m turnover by 2017.
“This new research from the BFA demonstrates the advantages of investing in a franchise business,” said Ruth Brown, Home Instead’s Head of Franchise Development. “We have over 150 carefully mapped territories available across the UK for franchisees who want to make a difference to society through their own business endeavours. We also have a number of territory resale opportunities available.”
For people interested in embracing the growing franchise trend, choosing the right business to invest in is vital. In 2015 Home Instead secured five-star franchisee satisfaction for the third year in a row – the highest rating possible – in the annual survey carried out by market research company Smith & Henderson.
Another survey also carried out by Smith & Henderson in June 2015 showed that 96 per cent of Home Instead’s clients rate the quality of the service as good or excellent and 92 per cent of CAREGivers would recommend the company to a friend or family member as a place to work. What better endorsement for business potential with Home Instead than such strong word of mouth from clients and CAREGivers.
“If you believe you’re cast from the caring entrepreneur mould, then we want to hear from you,” added Ruth. “By joining Home Instead, you’ll be investing in a proven model, which truly gives back to the community.”