We know that franchising is the most successful way of starting a new business. But don’t just take our word for it – below are some highlights from the 2008 British Franchise Association/NatWest Survey, which remains the UK’s leading survey of the current state and dynamics of franchising.
Over the last ten years the franchise industry has grown and matured into a significant element of the UK economy, contributing an estimated £12.4 billion to the country’s GDP last year. Growth in average turnover per unit and productivity continue to outperform the economy as a whole.
Franchising is a major employer in the UK, employing 1.3% of the working population, 383,000 people.
Three in five (62%) franchisees borrowed money to fund their initial investment. The average amount of money borrowed has increased considerably over the last decade, more than doubling from around £30,000 in 1997 to just below £70,000 this year. An increasing proportion of franchisees claim to borrow more than £50,000, up from 12% in 1997 to 41% in 2007.
Nine in ten franchisees (91%) claim their business traded profitably in 2007.
Franchisors and franchisees are more confident about the prospects for their own business than the wider economy.
The vast majority of franchisees continue to be satisfied with their relationships with franchisors: 88% would describe their relationship with their franchisor as definitely or mainly satisfactory.
The majority of franchisees (70%), feel that running a franchise has lived up to their expectations.
