The UK Franchising Industry Statistics

Franchise Consultants know that even in times of recession the UK Franchise Industry has shown incredible growth particularly for those brands that employ franchise consultants. Whilst there are many sources of statistics for franchising, all of which are positive, it is actually very difficult to truly measure the value of the total marketplace because it depends on what you class as an actual franchise in the first place! For this reason, you’ll often see the term “business format franchise” banded about to try and add clarity to the statistics and exclude financials for non-business formats. You’ll often see the term franchise applied to films, American football teams, train operators, cell phone operator rights and even milkmen!  However, a business format franchise is one where business is replicated by a separate business or individual in exchange for an initial fee and an on-going share of the resulting turnover usually through a percentage based or fixed fee royalty, the exact amounts of which are usually determined by experts like us. It is generally accepted that the UK Franchise industry is growing by around 10% per year and the Business Format Franchise market is worth over £13 Billion to the UK economy.

  • Industry annual turnover: £13.7 billion
  • Revenues have grown by 20% since 2008 (overall UK economy has contracted 2.5% in the same timeframe)
  • Number of franchisors: circa 930
  • Number of franchisee outlets: circa 39,000
  • Number of people employed in franchising: circa 561,000
  • Full-time employment tops 250,000 for the first time ever
  • Franchisees reporting profitability (including new businesses): 92%

Three Trade Franchise Associations

There are only three trade associations in the UK, The British Franchise Association the Quality Franchise Association and the Approved Franchise Association it is not a requirement for any Franchise Consultants or Franchisors to be a member of either however Lime are members of the top two. Members have a code of conduct to follow, get a badge of approval and of course pay for the privilege of being a member. If you’re reading this as a potential franchisor then membership may help you learn more about franchising and the kudos may convince a potential franchisee that you have a good franchise. If you’re a franchisee reading this then always remember that being a member of an association is no guarantee of being a good franchise and there is no shortage of case studies proving that! You’re buying a franchise from a company and the franchise industry is UNREGULATED so despite what any trade association may tell you there is no regulatory body in franchising!

Free Tickets to FranchiseExhibitions and Events

You can find out more about franchising at various events throughout the UK and if you’d like free tickets to any franchise exhibitions please contact us and as franchise consultants, we will be happy to provide one for you and a guest with our compliments subject to availability.

There are numerous Franchise Exhibitions and Regional Franchise Exhibitions throughout the UK, drop us a line and we’ll email you with details of the next ones. Contact franchise consultants Lime Licensing Group on 01274 662001 for more information.