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Franchise Industry Outlook for 2019

Franchise Industry Outlook for 2019

🕒 Estimated reading time: 5 min.

The UK economy has grown modestly since last year, from 1.3% to 1.6%, as the OECD predicted. So far, there is still uncertainty surrounding the terms of Brexit. Britain is due to leave the European Union on the 29th of March and no deal has been finalised yet. A no-deal Brexit will hit the economy hardest, with new trade barriers, a weak pound and increased inflation rates rapidly affecting businesses across the nation. If Britain does secure a deal, however, it will offer increased potential for companies currently most at risk, such as car companies.

Franchising offers a lot to the UK economy and it remains in exceptionally good health. According to the 2018 bfa NatWest Franchise Survey, the UK franchise industry contributes 710,000 jobs and is currently worth £17 billion. Over half of people employed in the franchise industry work full time. Profits remain high for franchisees at 93%, with 60% of franchises turning over more than £250,000 annually. Unlike business start-ups, the rate of failure remains low for franchisees, with less than 1% of franchise businesses closing due to failure.

The past seven years have been groundbreaking for the UK franchise industry – approximately 48,000 franchise units operate within the UK today, a number which has increased by almost 25% since 2011. The franchise industry remained steady during the last recession which is testament to the impact it has on our everyday lives. There has been significant growth over the last few years in the following franchise sectors: coffee, fast food, care homes and fitness. The bfa reports that there are no significant differences between smaller and larger businesses in terms of how profitable they are.

Franchise Direct is an ideal platform for prospective franchisees to find out more about the franchise industry and to see what types of opportunities suit their interests, lifestyle, location and budget. We offer a range of franchise opportunities in sectors such as cleaning, education, gardening, health, home care, property and much more. Finding an ideal franchise has never been easier.

One key benefit of managing a franchise is that support, advice and training are all available from the franchisor. Your success is their success, so they will ensure that you utilise their proven business model to grow your business in the best way possible. You don't need a business degree or any kind of qualification to become a franchisee – passion for the business itself is the most important thing!

Personal service franchises are thriving for 2019, which is great news for anyone running a careor home services franchise. 18% of people that live in the UK are over the age of 65 and approximately 80% of them are homeowners. Elderly homeowners will not be able to manage their home as they once did, so personal services such as cleaning, transport, shopping and lawn care are invaluable in their everyday lives. Life expectancy and overall health have improved dramatically in the UK – the population is expected to reach 74 million by 2039. People are staying in their homes for much longer, which means more maintenance services will be required. These types of services are both recession and Brexit-proof.

Franchise Industry Outlook for 2019
Teenage boy is delivering some groceries to an elderly woman. He is handing her a shopping bag at her front door.
DGLimages/Getty Images/iStockphoto

Care franchises such as Right at Home, Radfield Home Care, Caremark and Kare Plus are in high demand and this demand shows no signs of slowing down in 2019. Pip Wikins, CEO of the bfa, states that the "big boom in the domilicary sector" can be attributed to the fact that franchises are smaller businesses and can respond to the needs of a local community quickly. It is an ideal career for anyone with interpersonal skills, a passion for business and a desire to enhance local care services where they live. A medical background is not usually needed and there is the possibility, in some cases, to run the business part time or even work from home.

David Glover, Caremark's Managing Director, states: “With 13,000 homecare/supported living operators in the UK and 9,395 homecare providers registered with the Care Quality Commission, it’s no longer possible to just deliver great quality care – we have to find other ways to stand out in the marketplace. Caremark continually works in partnership with our network of more than 100 franchise offices to develop innovative processes in terms of care delivery, care worker recruitment and retention."

“This year, we launched a pioneering system called PatchCare, which harnesses the benefits of care delivered in a care home, and in-home care. In 2018, we launched our culture campaign. Creating the Mark of Excellent Care focuses on key areas of business that are vital for operational, regulatory and financial success: greater job satisfaction and reduced stress, performance and pride, recruitment, retention and loyalty."

“These innovations, combined with the hard work of our franchisees and their teams, have contributed to Caremark’s success and, as a direct result, we saw an increase of 14% in network turnover in 2018.”

Networking with people in the franchise industry is a great way to find out what type of business would suit you. Franchise Direct will be attending the International Franchise Show on the 5th and 6th of April in London and we're looking forward to seeing the exhibitors, speakers and visitors. This year's show looks set to be better than ever – 80 free seminars are available and over 200 brands will be exhibiting. This year's speakers include Brian Duckett from The Franchising Centre, Paul Mitchell from Accentia and Dan Archer from Visiting Angels. This is an excellent event to get up-to-date information about the franchise industry and to find out how you can become a franchisee in 2019. Get your free ticket today!

Franchise Direct receives approximately 1 million visitors per month, which is a lot of prospective franchisees! Our 14 websites are an excellent platform for connecting entrepreneurs with franchisors who are looking for investors. No other franchise portal offers this kind of global reach. Our Top 100 franchise list recently launched in France and we're currently in the process of developing this for our other markets. 2019 looks set to be another busy year and we wouldn't have it any other way.

Make 2019 your best year ever by becoming your own boss. Find out more about our incredible franchise opportunities here.

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