For many years franchising was the business world’s best kept secret. In the 70’s franchising in the UK slowed dramatically, partly due to Pyramid schemes claiming to be franchises and tarnishing the reputation of the model.
Since then the Pyramid scheme business model has been made illegal in many countries, including the UK. As such companies are no longer hiding the fact that they are a franchise - instead using it to their advantage to attract potential franchisees and expand their networks. Since a slight downturn in 2008, franchising in the UK is now a considerable and prosperous business model and has shown consistent growth in terms of numbers of brands franchising, numbers of franchisees, staff employed in franchised businesses and the overall turnover of the franchise sector.
Research consistently shows that circa 90% of franchisees these days report profitability and less than 4% of franchised businesses fail each year. Compared to a high failure rate of approximately half to two-thirds of independent start-up businesses, franchising is a proven and more resilient business model.
Below we highlight some key facts and figures from the UK franchise industry:
- - Contributes £1.5billion to the UK economy
- - Approximately 1,000 franchises in operation
- - 621,000 people are employed in franchising
- - 97% of franchises enjoy more than £250,000 turnover per annum
In 2018, the UK franchise industry has never been more affluent with the British Franchise Association seeing the model thrive and grow in both quality and reputation.
Winkworth franchising echoes these successes having seen seven new office openings in 2017 in key areas throughout the country. 2018 so far has produced four new offices, with another four in the pipeline, and six offices sold to new management. Winkworth new franchise enquiries are up 135% year on year and the quality of leads and conversion rates have risen.
The Office for Economic Co-operation and Development predict steady economic growth in 2019 despite challenges and uncertainty surrounding the Brexit deal. This is a good indication that franchising will continue to successfully grow and prosper as a stable and forefront business model throughout the UK.
If you would like to learn more about potentially becoming a Winkworth franchisee, get in contact with our new franchising team today for a confidential discussion.
Sources: Franchise Direct/BFA/Natwest/OECD