The British Franchise Association (BFA), in partnership with NIC Services Group, has announced the results of its 2024 National Franchise Survey, an extensive study that highlights the resilience and growth of the UK’s franchise sector.
As the first survey of its kind since 2018, the findings paint a positive picture of a thriving industry, despite the challenges posed by the global pandemic and economic pressures. The results have been published in the newly launched British Franchise Journal, available via the BFA website.
Growth, optimism, and economic impact
The franchise sector is a cornerstone of the UK economy, contributing a remarkable £19.1 billion annually. Each franchise unit now averages £400,000 in turnover, strengthening the financial power of the sector.
One of the standout findings is the optimism amongst franchisors. According to the survey, 87% of franchisors anticipate improvements in their company’s conditions, while 53% expect better overall economic conditions in the near future. This positive outlook reflects the sector’s resilience, even amidst economic adversity.
John Spencer, Chairman of NIC Services Group and former BFA Chairman, expressed his enthusiasm for the findings:
“Franchising continues to thrive, adapting exceptionally well during challenging times. It is clear that the sector’s ability to pivot and innovate positions it as a crucial player in the UK’s economic recovery.”
Franchise systems and unit growth
In 2024, the UK is home to 1,009 franchise systems. A figure representing an 8% growth since 2018. Additionally, there are now over 50,421 individual franchise units in operation across the country, marking a 4% rise.
Significant growth has been observed in specific sectors:
- Personal services have surged by 53% since the last survey.
- The hotel and catering sector has expanded by 34%.
However, challenges remain. Vehicle services and store-based retail sectors have seen declines of 34% and 25%, respectively. Despite these setbacks, the survey reveals that a substantial 89% of franchise units remain profitable.
Pip Wilkins, CEO of the BFA, emphasised the importance of this resilience:
“The sector is bouncing back, with 65% of franchisors reporting improved trading compared to pre-pandemic levels. It is incredibly encouraging to see such a strong recovery.”
Adapting to a new era of franchising
Post-pandemic, the franchise industry has seen notable shifts in how businesses operate. A significant 50% of franchisees now run their operations from home, a trend that reflects broader changes in work habits across the country.
Moreover, franchisees are expressing satisfaction with their franchisors. The survey shows 82% of franchisees are content with the support they receive, and 60% believe their expectations have been met or exceeded. This high level of satisfaction is evidence of the enduring strength of the franchisor-franchisee relationship.
A promising future for franchising
The 2024 National Franchise Survey not only provides a snapshot of the current state of the sector but also offers an optimistic outlook for its future. For example, the increase in women in franchising from 20% in 2018 to 40% in 2024, demonstrates the industry’s growing diversity and inclusivity. Additionally, less than 2% of franchises have exited due to closure, further highlighting the stability of the model.
Pip Wilkins concludes:
“Franchising is one of the safest business models to be in, and as this survey shows, it is not only surviving but thriving.”
To read more about these insights and trends, visit the British Franchise Journal.
Looking ahead
As the UK continues to face economic challenges, the franchise sector shines as a model of resilience and adaptability. With 87% of franchisors expecting better business conditions ahead, the industry is not only weathering the storm but also driving economic recovery. The rise in home-based operations and high franchisee satisfaction rates demonstrate the sector’s flexibility in evolving market conditions.
For Elite Franchise, these insights are invaluable. As a trusted voice in the franchising community, we are dedicated to spotlighting the innovations, best practices, and success stories that shape the industry. With franchisors increasingly embracing new opportunities and sectors like personal services and hospitality showing rapid growth, the future of franchising holds vast potential.
As businesses look to work through the uncertainties, franchising remains one of the most stable and promising pathways to growth. At Elite Franchise, we look forward to continuing our role in showcasing the stories that inspire and drive the sector forward.
