Over my three decades in franchising, the sector has changed dramatically. When I began my franchise career, there were very few major brands operating in the UK market. In fact, there were only around 400 franchisors in total, so franchising was still very much in its infancy.
Of the household names, there were McDonald’s, KFC and Burger King. While all three continue to operate today, the structure of franchising within these brands has shifted significantly. McDonald’s, for example, has moved from around 80% company-owned restaurants to approximately 80% franchised. KFC has seen substantial growth, with many formerly company-owned sites sold on to franchisees. Burger King, while more static in its expansion, has changed ownership in recent years and reinvigorated its franchise offer.
At that time, there were very few multi-unit operators beyond these brands. McDonald’s franchisees might have owned one or two restaurants each, but large-scale multi-unit ownership was rare. Domino’s was just beginning to show early signs of growth.
By the end of my first decade in franchising, multi-unit franchisees were becoming more prominent. Domino’s continued to expand, and the launch of the Costa Coffee franchise in 2004 marked a turning point, with operators encouraged to open at least five stores. McDonald’s franchisees, on average, had grown to around three units each.
My second decade saw significant acceleration. Multi-unit franchisees became far more common, and larger operators began to diversify, opening sites across multiple brands or even developing and franchising concepts of their own. Domino’s franchisees, for example, went on to open Costa, KFC and Taco Bell locations. The market expanded rapidly.
By the end of this period, multi-unit, multi-brand franchisees were often larger than many franchisors themselves. In one notable example, the owner of TaxAssist was bought out by management and franchisees. By this point, there were approximately 900 franchise systems operating in the UK, more than double the number when I began.
This decade also saw strong growth in personal services, children’s activities and home care franchises. At the same time, a new wave of food and beverage brands emerged, reflecting changing consumer tastes and a more diverse UK population. Health and fitness franchises also began to gain momentum.
Now, as we approach the end of my third decade in franchising, multi-unit and multi-brand operators are a defining feature of the sector. Personal services, children’s activities and home care remain strong, while health and fitness brands continue to grow at pace.
Looking ahead to 2026, three key themes are shaping the future of franchising.
The first is the expansion of alternative franchisee pathways. Prospective franchisees can now choose between single-unit ownership, territory-based models, or multi-unit and multi-brand portfolios. Franchising is increasingly positioned as an attractive route for professionals seeking career reinvention. The British Franchise Association has highlighted franchise ownership as one of the most effective ways for individuals to transition into entrepreneurship, supported by proven systems and established brands.
Second, technology is becoming a defining differentiator for franchise success. AI, automation and digital decision-support tools are playing a growing role in strengthening franchise operations and enhancing customer experience. While adoption will continue to evolve, some consolidation of platforms and systems is inevitable.
Finally, franchising remains under heightened policy and parliamentary scrutiny in the UK. Government signals suggest that statutory franchise reform may be under consideration, particularly around franchisee rights and contract protections. While no changes are yet confirmed, franchisors and investors alike will be watching developments closely.
Taken together, these shifts suggest that franchising in 2026 will be increasingly defined by innovation, transparency and the strength of franchise systems in supporting long-term success.
