Franchising industry worth £12.4 billion
By: Deborah Bates
23 May 2011
Over the past year, the UK franchising industry has generated some £12.4 billion, marking a five per cent increase on the previous figures.
That's according to figures released by the British Franchise Association (BFA) and Natwest, which confirmed the turnover for the industry had risen by £600 million.
These figures also revealed that the number of companies who decided to franchise their businesses rose by 6.5 per cent last year; bringing the total number to 897, Insider Media reported.
Furthermore, nine out of ten of these franchises made a profit over the past 12 months; something which should please the 521,000 people currently working as franchisees or as a franchise's staff member.
Some of the clear benefits of buying into a franchise were also revealed by the study, the Financial Times said. Around 80 per cent of franchises said that buying into this particular type of business model gave them "a competitive advantage."
Additionally, other benefits cited included the "expectation among consumers of higher quality," and the "appearance of being larger, standardised products."
A spokesperson for Natwest, Peter Ibbetson, expected the figures to only get better over the next 12 months, as he confirmed that "87 per cent of franchisers [are] planning to expand in the year ahead."
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