We recently wrote a piece on franchising facts in which we looked at the facts you may want to consider when looking at franchise opportunities, here we look at the data and statistics behind those facts.
Looking at inside industry data compiled by bfa and Natwest we are able to bring you the below information which shows the UK franchise industry booming. Please see our franchise facts page for more information and links to the bfa survey.
The franchise industry performance hits a new high after steady growth over the past decade. New records have been met in all areas of franchise numbers, staffing numbers, turnover and profitability.
The statistics from the latest bfa/NatWest survey show:
The UK Franchise Industry has an annual turnover (2015) of £15.1 billion
This is a whopping 46% increase over the past 10 years and a very healthy 10% increase over the past two.
A record 97% of franchise owned units recorded profitability. That is just 0.3% that are struggling – compare this to start up businesses and it is clear to see why franchising is so popular!
Franchisees’ satisfaction with their franchisor is also at record level, with 91% reporting satisfaction.
– 901 franchisor brands are currently operating in the UK
– Which makes up 44,200 franchisee outlets in the UK
– 621,000 people are currently employed in franchising in the UK
The average turnover per franchise also continues to rise, with over half of all UK based franchises claiming an annual turnover of more than £250,000.
As you can clearly see the figures prove the strength of the franchise industry and the attractiveness of the opportunities in the UK.
According to the U.S. Commerce Department fewer than 5% of Franchises were terminated on an annual basis showing a success rate of 95%
In a further study, this time by Arthur Anderson & Company of 366 franchise companies surveyed, nearly 97% were still in business after 5 years.
The US Franchise industry turns over $800 billion annually.
In the US There are approximately 1500 Franchisors and 550,000 franchisees, with more than 8 Million people employed by franchise businesses across the states.
The reason for looking at the USA is that the UK has closely followed the franchising trends from across the pond and wherever you are based, the security of the model is impressive.
So if you are looking for a UK franchise opportunity, call Just Shutters on 01202 233744 or download our brochure using the form on this page.