UK Franchise Industry Continues To Flourish
The latest survey by NatWest and the British Franchise Association (bfa) has revealed that the UK franchise industry continues to thrive despite the tough economic climate.
While other sectors have struggled, the bfa/NatWest Franchise Survey 2012 states that franchising has grown in key areas including growth, job creation and export,
While UK GDP grew by 0.7 per cent in 2011, the franchise industry increased its economic contribution by eight per cent as turnover rose to £13.4billion.
The survey also found that nine out of 10 franchise businesses posted a profit over the year – reducing loss-makers to pre-recession levels.
In contrast to a countrywide rise in unemployment of 180,000 in 2011, a total of 73,000 jobs were created in the franchise industry. This comes as the number of franchising systems operating right across the UK increased to 929, with 40,100 franchise business units employing 594,000 staff.
Brian Smart, Director General of the bfa, said: “The last few years have put crippling pressure on businesses, creating some of the toughest tradingconditions that many have ever seen. However, yet again we see the franchise sector proving its value by generating new sustainable business start-ups, jobs and revenue for an economy that desperately needs them.
“For those who are considering franchising this is obviously an encouraging sign, but we also stress the importance of thorough research and consideration before making any commitments.”