Franchisees driving economy, suggests industry report
By: Chris Taylor
28 June 2011
There has never been a better time to take up UK franchise opportunities according to the latest survey by the British Franchise Association (BFA) and Natwest.
In a survey recording results from 2010, the franchise industry increased its turnover by £600 million to a total of £12.4 billion, reports TheFranchisor.co.uk.
This rise accounts for a growth of 15 per cent, eclipsing the UK GDP growth rate of 9.4 per cent - suggesting that franchisees' businesses are booming and are also driving the economic recovery.
Over half a million people are involved in the sector with 56,000 extra jobs being created last year alone. Further positive results are found in the fact that more than two thirds of franchise businesses who have been trading less than two years are reported to make a profit.
"Yet again franchising has demonstrated its inherent tenacity and stability, despite a tough climate last year," commented Brian Smart, director general of the BFA in a Natwest.co.uk statement.
"This means many more sustainable business start-ups and jobs have been created by ethical franchising - further helping the UK economy get back on its feet," he added.
Experts in the franchising industry suggest that many are taking up franchise opportunities because it provides a profitable way into setting up their own business for relatively little cost. The research also found that average start-up costs reduced for a second year to £46,000.
Top of page