The UK Franchising Industry 2024 Statistics
After a break in recording data due to Covid new market data for 2024 is out. Franchise Consultants know that even in times of recession the UK Franchise Industry has shown incredible growth particularly for those brands that employ franchise consultants. Whilst there are many sources of statistics for franchising, all of which are positive, it is actually very difficult to truly measure the value of the total marketplace because it depends on what you class as an actual franchise in the first place! For this reason, you’ll often see the term “business format franchise” banded about to try and add clarity to the statistics and exclude financials for non-business formats.
You’ll often see the term franchise applied to films, American football teams, train operators, cell phone operator rights and even milkmen! However, a business format franchise is one where business is replicated by a separate business or individual in exchange for an initial fee and an on-going share of the resulting turnover usually through a percentage based or fixed fee royalty, the exact amounts of which are usually determined by experts like us. It is generally accepted that the UK Franchise industry is growing by around 10% per year and the Business Format Franchise market is worth over £13 Billion to the UK economy.
- Industry annual turnover: £19.1 billion
- Annual revenues per franchisee are around £400,000 on average.
- Number of franchisors: circa 1000+
- Number of franchisee outlets: circa 50,000+
- Number of people employed in franchising: circa 561,000
- Franchisees reporting profitability (including new businesses): 89%
One Trade Franchise Association
The British Franchise Association is the voice of the industry and the only trade association that has stood the test of time. It has a dominant position in the UK and is widely accepted as the voice of UK franchising. It is not a requirement for any Franchise Consultants or Franchisors to be a member of the BFA because they are not a regulatory body, they are a trade association. However Lime are members. Members have a code of conduct to follow, get a badge of approval and of course pay for the privilege of being a member.
If you’re reading this as a potential franchisor then membership may help you learn more about franchising and the kudos may convince a potential franchisee that you have a good franchise. If you’re a franchisee reading this then always remember that being a member of an association is no guarantee of being a good franchise and there is no shortage of case studies proving that! You’re buying a franchise from a company and the franchise industry is UNREGULATED so despite what any trade association may tell you there is no regulatory body in franchising!
Free Tickets to Franchise Exhibitions and Events
You can find out more about franchising at various events throughout the UK and if you’d like free tickets to any franchise exhibitions please contact us and as franchise consultants, we will be happy to provide one for you and a guest with our compliments subject to availability.
There are numerous Franchise Exhibitions and Regional Franchise Exhibitions throughout the UK, drop us a line and we’ll email you with details of the next ones. Contact franchise consultants Lime Licensing Group on 01274 662001 for more information.