Independent research has revealed that the franchising sector is worth a record £15.1bn to the UK economy, following a 14% surge in the number of new businesses launched since 2014.
Released by the British Franchise Association (bfa) who independently regulate the sector, the report revealed how the UK’s franchise industry is operating at record levels, with all-time highs reported in turnover, employment and numbers of franchisee-owned businesses. In 2015 alone, the number of franchise-owned businesses topped 44,000, employing 621,000 people across the UK.
Given today’s demand for more flexible working conditions and a better work/life balance, it is no surprise that over one third of new businesses launched since 2014 are run from home. Even more encouraging is the news that one in five new franchises launched in the last two years is owned by someone under the age of 30.
Brian Smart, director general of the bfa commented on the findings: “Good franchising continues to deliver serious dividends for Britain’s economy, creating businesses, jobs and wealth for local communities across the country. 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.
“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.”
Following these impressive results, franchising is projected to continue its successful trajectory in 2016, with thousands of budding entrepreneurs expected to attend this year’s Franchise Exhibitions. Running across the year at a number of prime UK locations, the exhibitions are the ideal platform for prospective franchisees to investigate the industry further.
Kick-starting the franchise calendar on the 19th – 20th February 2016, The National Franchise Exhibition will be the first opportunity to meet with some of the UK’s top brands including McDonald’s, Anytime Fitness, Dream Doors, Esquires Coffee, Cartridge World, and Home Instead Senior Care.
Adrian Goodsell, director of franchise sales at Venture Marketing Group who organise and run The Franchise Exhibitions comments, “The bfa report depicts an industry in excellent health, with 97% of franchise businesses showing profitability, half of which are turning over in excess of £250,000. I’m also thrilled that more young people are staring up franchises. The on-going business support makes franchising an excellent model for young entrepreneurs and offers a real alternative to going it alone.”
The National Franchise Exhibition takes place at the NEC, Birmingham on 19 & 20 February 2016 and The British & International Franchise Exhibition will return to London’s Olympia on 11 & 12 March 2016.