Franchising is on the rise in the UK and presents "less risk" for people who are looking to go into business, the British Franchise Association (BFA) said yesterday.
New research shows that the failure rate is a lot less when compared with business start-ups where people go it alone, because franchisees have the backup and support of a national brand behind them.
It can be hard to become a part of a major franchise, however, as "an established franchisor may take on only one in a hundred different people that apply for the franchise and have the money," the BFA advised.
Earlier this year, the BFA/NatWest UK Franchise Survey found that the franchise industry had a growth rate of 4.9 per cent in 2006 compared to 2.7 per cent of the UK economy as a whole, and is now worth £10.8 billion.
The findings also revealed that there were 781 companies involved in franchising, incorporating 34,000 franchisees employing over 370,000 people. And 93 per cent of franchises claim profitability.
Pip Wilkins, client services manager for the BFA, said: "The number of franchising brands has continued to grow year-on-year for the last 20 years.
"Generally, somebody will want to invest in a business and they will go and look at a whole realm of different franchise opportunities [and] lots of different businesses.
See copyright notice
Top Business News Stories