UK franchise industry continues to grow despite recession

Latest figures from the annual BFA/NatWest survey show the UK franchising industry is in rude health, contributing £11.8 billion to GDP in 2009, a very respectable increase of £400 million on 2008. Bucking trends in the wider economy, 94% of franchisors are confident about the future of their business, on average planning to take on 9 new franchisees this year, while nine out of ten franchise businesses are profitable.

Very interestingly, there has been an 86% increase in the number of women franchisees over the last year, perhaps reflecting the better work/life balance available to entrepreneurs running their own businesses over traditional employment roles.

Most importantly, the continued strength and stability of the franchise industry and the robustness of franchising as a start-up business model means banks are still prepared to lend and provide financial support to new franchisees. As Graeme Jones, head of NatWest’s franchise team, reassuring says, “We want to send a clear message out to the sector that NatWest is here to support growth opportunities.”