We've encountered some interesting statistics from the UK franchise market which proves that the UK market is starting to show legitimate signs of growth.
At a time of serious economic stagnation in Britain, a franchise organization called the Franchise Development Services claims that franchising can create over 500,000 job in the UK over the next 5 years.
Professor Ray Seaman, MD of FDS, is making a hard push to raise government attention to the economic power of franchising, especially in the area of East Anglia, where there are 110 franchise units in the city of Norwich alone.
Seaman asked the following question about what franchising can do:
“We are looking at about 2,000 new franchises over the next five years which means by 2016 it will mean an extra 70,000 new businesses. That means 500,000 new jobs and that’s being totally realistic. What would happen if we could increase that by 10pc?”
These are some of the statistics on UK franchising, according to Mark Scott, director of franchise development at Natwest bank, stats which show the potential of serious profit in a highly-established market: “There are 37,000 franchise locations across the UK and a total turnover of £12.4bn. The failure rate in any one year is less than 5pc and nine out of 10 are profitable. It really is a strong place to be.”