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An Overview of the UK Franchising Industry

In 2018, the franchising industry contributed GBP 17 Billion to the UK economy, an increase of GBP 2 Billion since the previous statistics produced in 2015.


In 2018, there were an estimated 48,600 franchised units in the UK.


The fastest growing sectors are: Personal Services (entertainment and tutoring, personal trainers, pet services, etc.), with a 3.1% growth from 2013 to 2018; and Hotel & Catering, with a 2.4% growth in the same period.


Between the period of 2001 to 2018, the estimated total number of people working in franchising has grown at a CAGR of 3.3%; from 407,000 to 710,000.

Source: British Franchising Association and NatWest (2018)


UK franchising has grown consistently for several decades, welcoming a wide range of businesses across all sectors.


​Growth in a trend towards younger business owners (18% of UK franchisees are under the age of 30), women in business (30% and rising), and multi-unit ownership (over one-third of franchisees own two or more outlets in either the same or multiple brands).

​Around 90% of franchisees have reported profitability annually for over two decades – including through the dotcom and global financial crash recessions.

The power of a proven business model and support from a franchisor has proved itself over the long term.  ​Franchising is well-known to thrive in times of economic difficulty, as workers look to secure their own future through self-employment and consumers turn to the safety of recognized brands for their purchases.


The financial and valuation metrics for publicly listed companies that have a similar business model are as follows:

Source: Yahoo Finance (Info as of 17 Oct 2022)

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