The British franchising industry is growing twice as fast as the country’s economy and is now worth a record £10.8bn, a new survey has shown.
The latest survey by NatWest and the British Franchise Association has revealed that the annual GDP for the UK in 2006 was 2.7%, compared to 4.9% for the franchising sector.
The survey also found that the industry has grown by a staggering 44% over the last 10 years, taking the total number of franchise outlets up to nearly 34,000 and the number of systems up to 781.
However, as the sector grows in size so does the strength of its success. An impressive 93% of franchisees are running profitable businesses and turnover for the industry as a whole has increased by 83% over the past decade, according to NatWest.
“With figures like these, it’s hardly surprising that the number of franchisors showing confidence in their own business remains very high with 80% positive about their prospects,” said Mark Scott, national franchise manager at NatWest.
“In addition, an impressive 84% of franchisees continue to feel either motivated, or highly motivated.”
Dan Archer, a spokesman for the BFA, commented that the franchising industry is now a significant employer, creating 7,000 new jobs in the UK last year alone.
“The growth in turnover by £500 million is testimony to the position of franchising as an important contributor to the UK economy.
“There are more people expanding their business through franchising, more starting their own business through franchising and more people employed because of franchising, signifying the impact the sector has both at a national and local level.”
© Crimson Business Ltd. 2007
