Franchising is a growing industry across the globe. And with the benefits it brings, it is clear to see why more and more people are deciding to start their own business as part of a franchise, rather than go it alone. Here are some fascinating franchising facts to show you why.
Franchising offers entrepreneurs the support, systems, experience, training, mentorship and proven business model of an existing successful business. These elements contribute greatly towards the overall success of franchises compared to new start ups.
Many people ask us ‘is a franchise my business or am I just employed to manage a unit of someone else’s business?’
The answer is – it is very much your own business. And while the franchisor will have certain criteria to be adhered to in order to protect their brand identity and to keep the franchise model as successful as possible, the business, running of it and it’s achievements are your own. You will be growing your own business for your own future and adding value to a company that is yours!
There are so many different statistics flying around on this one and a cause of much debate as to the exact figures, but whichever pools of data you chose to believe each one clearly shows franchises succeed over start-ups hands down.
Start-up failure rates are quoted in many sources between 75% – 90% with most quoting a 3 year failure rate of 80%, while franchise success rates are quoted anywhere between 67% and 92% with the most reliable source, the bfa, showing data that over 92% of franchises are profitable. Please see our franchise statistics for more information.
From the initial tools, sales packs, materials, website, marketing and office functions, you will see the cost effectiveness of a franchise. When looking at the breakdown of your franchise fees take into account the savings you are making over and above that which you would spend if you started alone.
Ongoing you will also find that group purchasing, marketing, advertising and office functions will save your businesses hugely over independent business start-ups.
On top of these tangible cost savings, the brand building, reputation, bespoke systems and proven business model bring huge value to your franchise.
We believe these franchise facts speak for themselves. But don’t just take our word for it! The latest UK franchising industry stats taken from NatWest/bfa Franchise Survey shows some incredible data:
– Last year sets a record year for franchising
– In just one year the overall UK franchise industry turned over £15.1 billion
– The UK franchising industry has seen an overall 46% increase over the past 10 years
– Since 2013 the industry has enjoyed 10% growth.
– The average turnover per franchise continues to increase. With over 50% of all UK based franchises annual turnover rising above £250,000.
To see more on these statistics and to see how we compare to the USA, please see our franchise statistics page.
So if you are looking for a UK franchise opportunity, call Just Shutters on 01202 233744