Latest UK franchise statistics

The annual NatWest/bfa franchise survey monitors the performance, attitudes and opinions of the UK franchise sector and thereby builds up a larger picture of the contribution of franchising to the British economy.

The NatWest/bfa Franchise Survey 2009, now in its twenty-fifth year, remains the leading study of franchising in the UK. To order a copy click here

General

• The franchise industry is now estimated to be worth £11.4 billion.
• The overall number of franchise systems is 838, an increase of 3.6% on last year
• There are an estimated 467,000 people employed in franchising.
• The average (mean) turnover for a franchised business is £326,000.
• The vast majority (90%) of franchisees say their business is profitable.
• Estimated start up costs have declined,as new entrants can expect to pay £50,400 in franchise fees and other associated costs.
• Property services remains the largest sector. Personal Services is the second largest.

Franchise recruitment

• Franchisors state the greatest hindrance to franchisor growth is the lack of suitable franchisees. One consequence of the recession in other areas of the economy is a rich vein of potential franchisees candidates, with the skills, the motivation and the resources to succeed in franchising.
• Word of mouth is the most useful from of recruitment, followed by the internet.
• 45% of franchisees use information sites, such as whichfranchise.com when searching for information on franchisors. whichfranchise.com and thebfa.org are the most widely used sites.
• 48% of franchisors recruit through their own website.
• On average, franchisors interview 7 people before they find the right candidate for each oppoetunity.

International Presence

• 75% of franchise systems in the UK are headquarted in this country.
• Amongst the international-based franchisors, 85% are based in the US or Canada.
• The number of British-run franchise systems with an international presence is 278 systems.
• Europe is clearly the favoured destination for franchisors with around a quarter(25%)claiming to operate units on the continent. The most popular destinations are - Ireland, France, Germany and Spain.
• A further 20% of franchisors aim to establish units outside of the UK.

Profile of Franchisees

• 82% of all franchisees are married.
• The average age of for a franchisee is now 47. The average age of new entrants is 42.
• 73% of new franchisee recruits are male. Over a third of new recruits are women.
• The number of graduates operating franchise units is 42%.
• A17% of new entrants are of Asian background. 4% are from the black community.

For further information or to order a copy click here or call the British Franchise Association (bfa) on 01865 379 892