Facts to Consider

Latest Franchising Statistics In The UK

When it comes to business, facts and figures matter. Whether you’re considering buying a franchise for the first time, are looking to buy an additional franchise or are just looking at your business options, it’s always helpful to know key franchise statistics. Taken from the 2018 Natwest Franchise Landscape report, we bring you some of the crucial numbers regarding the state of franchise businesses in the UK.

Significant contribution to the market which is growing over time

There is little doubt that franchises make money! The report suggests that, in 2018, UK franchises contributed around £17 billion to the UK economy. In 2015, the period when the last Natwest Franchise report was collated, it is estimated that about £15 billion from franchises was paid into the UK economy. What this indicates is that the sector is growing as a powerful economic driver.

Franchises last!

One of the major reasons individuals opt to buy a franchise rather than start their own business is because franchises have a better track record of success. The Natwest figures back this up, indicating that over 90% of franchisees say that they are making a profit. In addition, less than 1% of franchises fail each year. In a sobering contrast, figures suggest that about 60% of non-franchise SME start-ups fail within five years.

Around 33% of franchisees run more than one franchise

This staggering statistic seems to suggest that franchising works so well for a significant minority of owners that they are prepared to take on additional franchises. This is a further indication that franchises are frequently an attractive proposition.

The number of franchises have more than doubled in 25 years

Currently, there are around 48,000 franchise businesses in the UK. This is around twice the number that were operating a quarter of a century ago. Clearly the franchise model must be a successful one to see this degree of growth.

The figures largely speak for themselves: in the majority of cases, franchise owners can usually expect to receive a good return on their investment. Ready to take on a franchise? Why not see what’s available in your local area?

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