Franchising has contributed an estimated £14.4 billion to the UK economy in the last 12 months, according to a survey conducted by Franchise Development Services (FDS).

In its report 'Franchising in the UK', FDS found that UK franchise owners are achieving a 91.8 per cent success rate, with only 8.8 per cent of franchise owners report that they are not breaking even or better, and 61.7 per cent describe their businesses as 'satisfactory' or 'highly profitable'.

Furthermore, optimism is high among the owners of franchised businesses with 98.6 per cent expecting to achieve growth in the next 12 months.

Professor Roy Seaman, FDS Chairman, said: "Franchising as a sector natually outperforms the economy during any economic circumstances because it is based upon developing highly stable business concepts and replicating them across national networks of enthusiastic and motivated franchise owners. In an economic downturn the difference becomes pronounced because so many franchised businesses continue to perform well while other businesses suffer.

"In the last 12 months FDS has identified over 230 companies that have chosen the franchise expansion route. For less than £50,000 - the cost of opening one new company-owned and managed location - they can be up and running with two or more franchise outlets within a year."

Published: 26 January 2010

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