UK FRANCHISE INDUSTRY GROWS BY £1 BILLION

Sector continues to generate sustainable business start-ups despite tough trading conditions

Undeterred by ongoing economic pressures, the turnover of the UK franchise industry grew by £1 billion to £13.4 billion in 2011, according to the 2012 NatWest/British Franchise Association franchise survey.

The report also highlighted that 90 per cent of franchisees posted a profit, reducing loss makers to pre-recession levels.

Further growth is also likely, as 76 per cent of those surveyed expect business to improve in the coming months - compared to 44 per cent of all small and medium-sized enterprises.

In addition, 80 per cent of respondents believe that franchising gives them a competitive advantage over other small businesses, as they have the support of a larger brand.

In contrast to a UK-wide rise in unemployment of 180,000 in 2011, a total of 73,000 jobs were created in the franchise industry.

This comes as the number of franchising systems operating across the UK increased to 929, with 40,100 franchise business units employing 594,000 staff. 

“The last few years have put crippling pressure on businesses, creating some of the toughest trading conditions that many have ever seen,” says Brian Smart, director general of the bfa.

“However, yet again we see the franchise sector proving its value by generating new sustainable business start-ups, jobs and revenue for an economy that desperately needs them.

“For those who are considering franchising, this is obviously an encouraging sign, but we also stress the importance of thorough research and consideration before making any commitments.”