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Why Franchising

NatWest/bfa Franchise Survey 2009 - The Franchise Market

As more and more people chose to run there own business franchise is booming please see below highlights from the 2009 NatWest BFA UK franchise survey.

The annual NatWest/bfa franchise survey monitors the performance, attitudes and opinions of the UK franchise sector and thereby builds up a larger picture of the contribution of franchising to the British economy. The NatWest/bfa Franchise Survey 2009, now in its twenty-fifth year, remains the leading study of franchising in the UK.

General

The franchise industry is now estimated to be worth £11.4 billion.The overall number of franchise systems is 838, an increase of 3.6% on last yearThere are an estimated 467,000 people employed in franchising.The average (mean) turnover for a franchised business is £326,000.The vast majority (90%) of franchisees say their business is profitable.Estimated, as new entrants can expect to pay £50,400 in franchise fees and other associated costs.Property services remains the largest sector.Personal Services is the second largest.

Franchise Recruitment

Word of mouth is the most useful from of recruitment, followed by the internet. 45% of franchisees use information sites, such as www.franchisenews24.tv when searching for information on franchisors.48% of franchisors recruit through their own website.On average, franchisors interview 7 people before they find the right candidate for each opportunity.

International Presence

75% of franchise systems in the UK are headquarted in this country.Amongst the international-based franchisors, 85% are based in the US or Canada.The number of British-run franchise systems with an international presence is 278 systems.Europe is the favoured destination for franchisors.The most popular destinations are - Ireland, France, Germany and Spain.A further 20% of franchisors aim to establish units outside of the UK.

Profile of Franchisees

82% of all franchisees are married.The average age of for a franchisee is now 47.The average age of new entrants is 42.73% of new franchisee recruits are male. Over a third of new recruits are women.The number of graduates operating franchise units is 42%.17% of new entrants are of Asian background.4% are from the black community.