Franchise Business Consultant

The British Franchise Association (bfa) and NatWest Bank conduct an annual survey, now in its 24th year, into the franchise industry in the UK. We listed below the key finds from the survey:

A copy of the full survey can be purchased by selecting the report image which will direct you to the BFA bookshop. (here )

General

• There are 806 franchise systems in operation in the UK
• There are an estimated 383,000 people employed in franchising. The average initial cost of starting a franchise is £52,500 (inc. franchise fee, working capital, equipment and fittings, stock and materials)
• 91% of franchisees claim to be profitable
• The average turnover for franchised businesses is £360,000
• On average franchisees pay a 7.5% management services fees and 1.9% national marketing contribution of their annual turnover to their franchisors
• The three biggest sectors are: Personal Services, Business & Commercial Services and Property Services

Relationships

• Relationships between franchisees and franchisors are healthy, with 84% reporting satisfaction in their dealings

International presence

• The number of British-run franchise systems with an international presence has risen to an estimated 265 (33% of total), with Europe being the favoured destination
• 29% of franchisors, not operating overseas, have plans to expand abroad

Profile of franchisees

• 86% of all franchisees are married
• 75% of franchisees are male
• The average age for franchisee is 47
• Two-thirds (69%) of franchisees were in salaried employment immediately before taking out their current franchise

Other

• Carbon footprint: 32% of franchisors had taken measures to reduce the carbon footprint of their franchise and their franchisee network, up from 11% in 2006.

Other surveys:

• Statistics