Whether it is the brand name that instills confidence or the level of motivation of new business owners, the fact of the matter is that franchising is perhaps the best thing that has happened to the U.K. economy.
In this year’s survey by NatWest and British Franchise Association (bfa) the franchise industry reported a 4.9% growth as compared with the 2.7% growth in the economy of U.K in 2006.
The franchise industry had a turnover of £10.8 billion and as high as 93% franchisees reported profitability. It is interesting to note that in the last decade this industry has indicated profitability levels of 88% to 95%, perhaps the highest in any industry. It is thus not surprising that franchisees are motivated and enthusiastic about their business, perhaps this is the secret to the success in this business.
“The franchise sector remains a significant employer and last year alone created 7,000 more jobs in the UK. Whilst we continue to hear about redundancies in the media, it seems that franchising is not only helping people realise their dream of self-employment but also has an impact on job creation, helping to plug the gap created by corporate redundancies,” says Dan Archer of bfa.
An increasing number of people are preferring to start their business with a franchisee while businesses are also showing a growing inclination to expand with franchise. It is a win-win situation that has given a lot of people a reason to smile.