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The future is franchising

Since the Brexit vote the property market has remained uncertain and this has been evident in many estate agencies’ declining results over the years. If you look at franchised estate agency businesses like Winkworth however, growth is still happening, mainly due to the model being sustainable even in an economic downturn.


New research by the British Franchise Association has shown that despite political tumult, the UK franchise industry is operating at a record level, growing 10% in the last four years and contributing over £17.2 billion pounds to the UK economy.

Encouragingly, this acceleration in growth in UK franchising has been driven mostly by the under 30’s and entrepreneurial women. The franchise route has become more achievable, especially for the millennials, due to it becoming a more affordable option. Banks now prefer to lend to franchises rather than independent companies due to the longevity of the business model and the lower failure rates. Research has recently found that 50% of independent start ups fail within the first 24 months of trading whereas only 5% of total UK franchises fail.  Winkworth franchises have less than a 2% failure rate.

The combination of the success rate in franchising and the ability to borrow more money cheaply has meant that franchisees are expanding their business portfolios. Today 29% of franchisees in the UK own more than one franchise whereas 31% of Winkworth franchisees own more than one office.

Continued growth in franchising in the UK has meant that more and more people are starting their own businesses and therefore creating more jobs, bolstering the UK’s economy and reducing unemployment figures. There are now over 48,600 franchises operating on the high street in the UK, providing employment to more than 710,000 people, with 51% of these people in full time employment.

Research has also found that the UK franchise industry is remarkably recession proof with more than 60% of franchises recording a revenue of over £250,000 a year. In 2018, Winkworth’s average office revenue across the network was £460,000 for the year. The Winkworth London offices averaged a revenue of £580,000 each for 2018, much higher than the franchise industry average.

It's clear to see that franchising in the UK is continuing to grow, make money and retain interest from budding entrepreneurs, and Winkworth is no different. Whilst the sales market in estate agency remains undermined by political and economic uncertainty, Winkworth stays a steady and constant ship, growing its lettings business year on year, expanding its country network and continuing to pay increased dividends. Proof that the future of business is with franchising.

If you would like to learn more about franchising and owning your own Winkworth office get in touch with the new franchising team today.

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