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Infographic: The UK Franchise Industry

The British Franchise Association have recently published the latest edition of their annual Franchise industry report. This report started in 1994 and is the most detailed survey in the world. ReedCommercial have have used the key highlights from this research to create the infographic below outlining the strength of the current UK franchising industry.

Franchising in the UK has never been so strong. £15.1 Billion is now believed to be the amount franchising brings into the UK economy. This shows how popular franchising has become in the last 10 years with the survey finding a 46% increase since 2006. This is also a 10% increase from 2013.

Furthermore, over this past decade, the amount of people who have become employed in the franchising industry has exploded by an enormous 70% to 621,000 individuals by the end of 2015, an 11% increase since 2013. The boom means the industry has accustomed itself to a consistent rise in average turnover for each business and over half now claim an annual turnover of more than £250,000.

In the UK, there is over 44,000 franchisee- owned business in the UK. More and more people are realising the benefits by this tried and tested business model which involves buying the rights to use a trade name whilst having ongoing support and access to the franchisor's experience and expertise.

Franchising essentially minimizes the risk that comes with building a business from scratch. This is backed up with statistics, as in 2015 less than 1% of franchises closed as a result of commercial failure.

Franchised businesses also have a low rate of an ownership change at 4.6% and in the past two years 1 in 5 of franchisees were under the age of 30. With this new influx of young blood embarking in their own business and 97% of franchisee owned units reporting profitability, it is clearly a sector on the rise, showing no signs of slowing down.

The survey simply shows how much franchises are pushing forward, and now 29% of franchisees run multiple units. There are more opportunities than ever for potential franchisees who are entertaining the idea of a low- risk business venture.

This was posted in Bdaily's Members' News section by Kat Kynes .