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

The 2006 NatWest/bfa Franchise Survey, now in its twenty-second year, remains the leading study of franchising in the UK. To order a copy click here

General

• There are 759 franchise systems in operation in the UK (increase of 6% in last 12 months)
• There are an estimated 364,000 people employed in franchising
• The amount borrowed to finance a franchise varys greatly between different franchises. The average is £40,000 for this years study.
• The average investment needed to launch a franchise concept in the UK is £166,000.
• 92% of franchisees claim to be profitable
• The average turnover for franchised businesses is £318,000
• Property services is now the largest sector. Business and Commercial Services is the second largest.

Relationships

• 83% of franchisees describe themselves as motivated
• Relationships between franchisees and franchisors are healthy, with 85% reporting satisfaction in their dealings
• 55% of franchisors report that a lack of suitable franchisees continues to thwart their plans. 21% identified a lack of financial backing and 18% said a lack of suitable sites

International Presence

• The number of British-run franchise systems with an international presence is 204 systems (27% in total)
• Amongst franchises that have been established for seven or more years, 35% have overseas operations
• 43% of franchisors have plans to expand abroad. 55% have plans to grant a master license
• Main barriers to oversea expansion are legislative requirements, lack of suitable franchisees and language barriers

Profile of Franchisees

• 81% of all franchisees are married
• 80% of franchisees are male
• 28% of franchises are run by married couples
• The average age for a franchisee is 46
• Two-thirds (64%) of franchisees were in salaried employment immediately before taking out their current franchise
• 32% of franchisees hold no formal qualifications

Other

• The internet is now the main recruitment channel, overtaking printed press for the first time. Over three quarters of new franchisees checked their propsective franchise system's website, two-fifths logged onto the bfa website and a similar proportion surfed general franchise information sites such as whichfranchise.com and franchisesforsale.co.uk
• bfa membership has also increased again with 41% of franchisors members.

For further information or to order a copy click here or call the British Franchise Association (bfa) on 01491 578 050