Franchise Offers Firm Footing For Entrepreneurs

Peterborough Today:

Over the last 10 years, the franchising industry has grown and matured into a significant element of the UK economy.

The latest NatWest/British Franchise Association (bfa) survey reveals that the estimated economic contribution of the franchising industry has increased from £7 billion to £12.4 billion and now encompasses 809 franchise systems, an increase of 3.5% from last year.

2007 was a year of expansion for the industry, with the total number of franchise units reaching 34,200, which is the highest figure ever recorded since tracking began in 1984. This also marks a healthy increase of 8% from the total number of franchise units in operation in 2006.

As the sector expands, so does its profitability, with an impressive 91% of franchised units making a profit during 2007, (93% in 2006), with the average turnover of these units being £360,000. This represents an 11% increase on the average turnover figures reported for 2006 (£323,000).