Despite the fact that there are over 800 different franchise systems in the UK generating £12Billion in revenue, many people in the wider population still know very little about franchising.
As such, over the next few weeks/months, I plan to highlight some of the key findings published in the NatWest/BFA Franchising Survey 2008. This report in its 24th year summarises the results of surveys done with a stratified random selection of both franchisors and franchisees.
From the Management Summary:
- Over the last ten years the franchise industry has grown and matured into a significant element of the UK economy, contributing an estimated £12.4 billion to the country's GDP last year.
- Franchising has outstripped the UK economy for the second year running with an impressive growth of 15% over the national GDP of 3.1%. Government (Office of National Statistics) data indicates that economic growth is slowing but the strong performance of franchising is positive for the economy.
- The number of active business format franchise systems identified in 2007 is 809.
- The number of franchise units increased by 8% taking the total to 34,200, the highest number since tracking began in 1984.
- Franchising is a major employer in the UK, employing 1.3% of the working population, 383,000 people. Employment in the sector increased by 3% last year compared with 0.1% nationally.
- Europe remains the main target for overseas expansion. A third of UK franchise systems operate internationally, nearly all of whom have developed on the continent. Other markets include the US, Australia and New Zealand.
- Franchising is gradually moving away from the white, male dominated stereotype. Increasingly, franchising is attracting more women and people from ethnic communities. The British Indian community is particularly prominent among new applicants becoming franchisees.
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