2024 Franchise Industry Survey

The 2024 Franchise Industry Survey results were released last week and they show some interesting and positive findings.

Released by The British Franchise Association and NIC Services Group the survey is the first in-depth look at franchising in the UK since Covid.

Franchising has solidified its role as a crucial component of the UK economy, and recent statistics underline its resilience and continued growth, even amidst economic uncertainty. The latest industry survey data paints an optimistic picture of the sector, highlighting its substantial financial contributions, evolving trends, and positive outlook for the future.

Some headline points:

Economic Impact

Franchising remains a key economic driver in the UK, generating an impressive £19.1 billion annually. The sector’s financial health is reflected in the average turnover per franchised unit, which sits at approximately £400,000. These figures demonstrate the viability and profitability of franchising, making it an appealing option for entrepreneurs looking to invest in a reliable business model.

Expansion of Franchise Systems

The UK franchising sector continues to grow, reaching a record high of 1,009 franchise systems, an 8% increase since 2018. The number of franchise units has also risen to 50,421, marking a 4% growth in the same period. The personal services sector has seen the most significant expansion, with a 53% increase in new franchise systems, reflecting the rising demand for services in health, wellness, and education.

In contrast, some sectors, such as Store Retailing and Transport & Vehicle Services, have experienced declines, likely due to shifts in consumer preferences and advancements in technology. Nevertheless, the overall growth in the franchising sector highlights its adaptability and resilience in navigating changing market conditions.

Confidence in the Future

Despite broader economic challenges, franchisors maintain a positive outlook for their businesses, with 87% expecting financial improvements over the next 12 months. This optimism stands in contrast to more tempered views on the overall economy, where only 53% anticipate a general economic upturn. This suggests that while franchisors are confident in their business operations, they are mindful of potential external economic pressures.

Gender Balance

While the franchising sector has traditionally been male-dominated, it is now seeing a more equitable gender representation. Women currently account for 40% of all franchisees, a significant rise from just 20% in 2005.

The full survey is featured in the British Franchise Journal 2024.