The Franchise Marketplace
One of the most comprehensive surveys of the franchise market in the UK is carried out annually by NatWest and the British Franchise Association. From their last survey the franchise market as a whole has evolved rapidly over the last year.
The key findings of the survey are highlighted below:
- The franchise industry as a whole is now worth near £11 billion
- The franchise sector has grown by 44% over the last 10 years alone
- There are now 34,000 franchisee outlet that equates to 781 unique franchise platforms
- Over 90% of all the franchises surveyed made a profit
- The turnover per franchise is estimated at £323,000
- Average turnover of a franchise has increased by 83% over the last 10 years
- Franchises now employ over 370,000 people
- Half of all franchisors have plans to expand their franchise market overseas
- Europe has become the most favoured region for franchise expansion
- Franchise expansion in Australia has declined by 6%
- The average age of a franchisee is now 46 increasing on average by 6 years over the previous year’s survey
- Over 50% of all franchisees have no higher education qualifications
- The average cost of setting up a franchise is now £155,000
- The business format used by franchisees is now sole trader 36%, limited company 49% and 15% as partnerships
- A quarter of all new franchisees come from an Asian background
- On average it takes six months to find, plan and open a new franchise for business. However, it can take nearly eight months for franchise businesses that have a catering element as there is often a delay in obtaining all the required permits and sourcing appropriate premises for the new franchise
- The contribution of franchises to the UK economy is now 15%
