2018 – a record year for growth
The CEO of the British Franchise Association (Bfa), Pip Wilkins, claimed that the franchising sector is showing incredible growth when publishing the 2018 bfa NatWest franchise Survey. The report contains some fascinating and reassuring franchise statistics. It shows that since 2015; UK turnover from franchises up 14% to £17.2 billion, the number of franchise units has increased by 10% and 14% more people are now employed in franchises.
Franchise success on the rise
The franchise statistics shows that 2018 was a great year for franchisees, furthermore suggesting that the trend is likely to continue. In 2018, 93% of franchises surveyed claimed they were are profitable, with 6 in 10 turning over more than £250,000! This success indicates that franchisees are getting busier, therefore it is no surprise that approximately 75% of franchises now employ staff.
As a result of this success, banks now tend to prefer lending to franchises over start up businesses. Research shows that 50% of start up businesses fail, whilst only 0.9% of franchises closed due to commercial failure. Therefore it can be seen there is a clear benefit to franchising instead of going it alone. The Bfa suggest that the main driver behind this success rate is that franchisees have the benefit of an already established brand and proven business model.
New franchisees – young entrepreneurs and women joining the game
More women than ever are becoming franchisees, with 30% of all new franchisees in 2018 being women. However, this was not the only new trend in franchise recruitment. It appears that franchising has become an attractive option for young people, with 18% of all franchisees are under 30.
Franchise statistics and Brexit
The report presents some unusual but reassuring franchise statistics. Whilst only 30% of franchisees show confidence in economic growth following Brexit, 70% are confident that they will see an improvement in the financial performance of their franchise. This is backed up by franchisors, of which 90% are confident in the growth of the franchises.
Contact Just Shutters
These franchise statistics show that now is a fantastic time to consider franchising! If you are looking for a franchise opportunity in the UK get in touch.
Call Just Shutters on 01202 233744 or request our brochure here.
Statistics source: 2018 bfa NatWest franchise Survey.