New report reveals franchise sector growth


With more than 250,000 people actively looking into owning their own franchise business and more than 1,500 franchise brands expanding nationwide, the franchise opportunities available in the UK are vast. Norwich-based Franchise Development Services (FDS) has published the first comprehensive report reviewing all aspects of the UK franchise industry.

The report, Insight: An industry review of Franchising in the UK 2010, was produced by MBA students from the Norwich Business School at the University of East Anglia. It analyses historic, present and future trends in the UK franchise market incorporating the views of franchisors, franchise owners and banks with specialist franchise finance departments.

Among the survey’s key findings are:

  • Franchisors on average are receiving up to 40 monthly enquiries of which one to two proceed to buy a franchise.
  • Initial investment costs are funded primarily through the franchise owner's own savings.
  • Most people, who buy a franchise, do so because they want to start their own business and will select a franchise that relates to their previous work experience.
  • 77 per cent of franchises in the UK are indigenous brands.
  • In the future, more franchisors intend to expand their businesses via franchised outlets over company-owned outlets.
  • Despite the recession, franchisors achieved and exceeded their turnover targets.
  • The most successful method of franchise owner recruitment is from franchise related websites and franchise magazines.