{"id":192738,"date":"2024-11-27T06:00:00","date_gmt":"2024-11-27T05:00:00","guid":{"rendered":"https:\/\/feb26.lexpress-franchise.com\/en\/articles\/2024-uk-franchising-trends-and-insights\/"},"modified":"2024-11-18T09:20:59","modified_gmt":"2024-11-18T08:20:59","slug":"2024-uk-franchising-trends-and-insights","status":"publish","type":"post","link":"https:\/\/feb26.lexpress-franchise.com\/en\/articles\/2024-uk-franchising-trends-and-insights\/","title":{"rendered":"2024 UK franchising: trends and insights"},"content":{"rendered":"\n

The United Kingdom franchising sector remains one of the most dynamic and adaptable parts of the economy. The 2024 National Franchise Survey, conducted by the British Franchise Association (BFA) in collaboration with NIC Services Group, offers a comprehensive look at the current state of the sector. With contributions from over 150 franchisors and 300 franchisees, this annual survey serves as a barometer for trends, challenges, and opportunities within the industry<\/a>.<\/strong><\/p>\n\n\n\n

\n\n\n\n

Beyond the headlines of \u00a319.1 billion (\u20ac22.9 billion) in economic contribution and 1,009 franchise systems, this year\u2019s findings reveal a sector that is not only bouncing back post-pandemic but also navigating challenges like recruitment, evolving consumer behaviors, and diversity and inclusion. To explore these results, we interviewed Pip Wilkins, Chief Executive of the BFA, who offered her expert analysis and reflections.<\/p>\n\n\n\n

The survey and its importance<\/h2>\n\n\n\n

The National Franchise Survey has been a fixture of the UK franchising landscape for over three decades. Its aim is simple: to provide reliable data on franchising trends, highlight areas of growth, and identify challenges facing the sector. <\/p>\n\n\n\n

\u201cWe work with an independent research company, BDRC, to ensure the data is robust and representative,\u201d explains Pip Wilkins. \u201cThis includes everything from small startups to larger, more established brands. It\u2019s about giving franchisors and franchisees actionable insights to strengthen their businesses.\u201d<\/p>\n\n\n\n

This year\u2019s survey underscores the resilience of franchising, with 87% of franchisors optimistic about their company\u2019s prospects\u2014a clear sign of recovery and innovation in the face of economic challenges.<\/p>\n\n\n\n

A resilient and adaptive sector<\/h2>\n\n\n\n

The results show that franchising continues to outperform the broader economy, with 89% of franchise units reporting profitability and an average turnover per unit of \u00a3400,000 (\u20ac479,000). Pip attributes this resilience to strong support systems within franchising networks.<\/p>\n\n\n\n

\u201cFranchising is outperforming general business. And I think a lot of that is down to the support infrastructures that franchisors have put in place,\u201d says Pip Wilkins. \u201cSince the pandemic, most franchisors have seen a bounce back to pre-pandemic levels or higher. Franchisors and franchisees pulled together like never before.\u201d<\/p>\n\n\n\n

The survey also reveals how franchising adapted to remote work and technology. In 2015, only 40% of franchisors operated from home; today, that figure has risen to 56%. The shift to online communication has strengthened networks, with 85% of franchisees now maintaining regular contact with their franchisors, including 28% who communicate daily.<\/p>\n\n\n\n

\u201cThe move to digital has been transformative,\u201d Pip notes. \u201cFranchisors are touching base more frequently, and franchisees are benefiting from peer-to-peer networking through Zoom meetings, workshops, and masterclasses.\u201d<\/p>\n\n\n\n

Growth and opportunities in specific sectors<\/h2>\n\n\n\n

One of the most notable findings is the significant growth in the personal services and hotel\/catering sectors, which now account for more than half of all franchise systems. The personal services sector, including domiciliary care, has expanded rapidly due to shifting demographics.<\/p>\n\n\n\n

\u201cThe aging population is a key driver,\u201d Pip explains. \u201cIn the UK, over 11 million people are now over 65. This has fueled growth in care franchises like Home Instead, which has grown from 18 units in 2007 to over 250 today.\u201d<\/p>\n\n\n\n

Similarly, the children\u2019s activities sector is filling gaps left by cuts in school funding. \u201cFranchises are stepping in to provide extracurricular activities, ensuring that children, regardless of background, have access to physical education and skill development,\u201d Pip Wilkins says.<\/p>\n\n\n\n

On the flip side, sectors like transport and retail are struggling, reflecting challenges in the wider economy. However, even here, franchises are finding ways to adapt, with some moving toward convenience models to better serve local markets.<\/p>\n\n\n\n

Challenges: recruitment and multi-unit franchising<\/h2>\n\n\n\n

Despite its successes, the franchising sector faces hurdles, particularly in recruitment. With 87% of franchisors expecting better trading conditions, finding the right franchisees remains critical.<\/p>\n\n\n\n

\u201cRecruitment is tough; franchisees are more selective than ever,\u201d Pip Wilkins acknowledges. \u201cFranchisors need to attract individuals who are serious about building a business\u2014not just looking for a get-rich-quick scheme.\u201d<\/p>\n\n\n\n

Another trend is the rise of multi-unit franchising, where franchisees manage multiple locations. The average number of units has risen from 4\u20135 to 11, particularly in sectors like hospitality. While this model offers growth potential, it also requires franchisors to rethink support structures.<\/p>\n\n\n\n

\u201cManaging multiple units is a different skill set,\u201d says Pip Wilkins. \u201cFranchisors need a proactive plan to train and support franchisees as their businesses grow.\u201d<\/p>\n\n\n\n

Driving diversity and inclusion<\/h2>\n\n\n\n

Progress in gender parity is another positive trend, with female participation in franchising rising from 20% in 2005 to 40% today. Events like Empower, initiated by the BFA, have played a pivotal role in supporting women in franchising.<\/p>\n\n\n\n

\u201cWe\u2019ve done a lot on mental health, imposter syndrome, and menopause\u2014topics that aren\u2019t often addressed in business,\u201d Pip Wilkins shares. \u201cEmpower creates a space for women to come together and thrive.\u201d<\/p>\n\n\n\n

The BFA is also pushing for broader diversity through its Diversity, Equity, and Inclusion (DEI) initiatives. \u201cFranchising is very middle-aged and white at the franchisor level, but we\u2019re seeing more diversity at the franchisee level,\u201d Pip Wilkins says. \u201cIt\u2019s about creating strategies to recruit and support a more diverse workforce.\u201d<\/p>\n\n\n\n

Promoting inclusion in UK franchising<\/h2>\n\n\n\n

The 2024 National Franchise Survey highlights a sector that is resilient, adaptable, and forward-looking. From the rise of personal services franchises to progress in gender equality, UK franchising is evolving to meet societal and economic demands.<\/p>\n\n\n\n

As Pip Wilkins concludes, \u201cFranchising is thriving because of its ability to respond to challenges and plug gaps in the market. With strong collaboration and innovation, the future looks brighter than ever.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

The United Kingdom franchising sector remains one of the most dynamic and adaptable parts of the economy. The 2024 National Franchise Survey, conducted by the British Franchise Association (BFA) in collaboration with NIC Services Group, offers a comprehensive look at the current state of the sector. With contributions from over 150 franchisors and 300 franchisees, […]<\/p>\n","protected":false},"author":394,"featured_media":192744,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_seopress_titles_title":"2024 United Kingdom franchising: trends and insights","_seopress_titles_desc":"The UK franchising sector remains one of the most dynamic and adaptable parts of the economy. This annual survey serves as a barometer for trends within the industry.","_seopress_robots_index":"","_seopress_robots_follow":"","_seopress_robots_imageindex":"","_seopress_robots_snippet":"","_seopress_robots_primary_cat":"none","_seopress_robots_breadcrumbs":"","_seopress_robots_freeze_modified_date":"","_seopress_robots_custom_modified_date":"","_seopress_robots_canonical":"","_seopress_social_fb_title":"","_seopress_social_fb_desc":"","_seopress_social_fb_img":"","_seopress_social_fb_img_attachment_id":0,"_seopress_social_fb_img_width":0,"_seopress_social_fb_img_height":0,"_seopress_social_twitter_title":"","_seopress_social_twitter_desc":"","_seopress_social_twitter_img":"","_seopress_social_twitter_img_attachment_id":0,"_seopress_social_twitter_img_width":0,"_seopress_social_twitter_img_height":0,"_seopress_redirections_value":"","_seopress_redirections_enabled":"","_seopress_redirections_enabled_regex":"","_seopress_redirections_logged_status":"both","_seopress_redirections_param":"","_seopress_redirections_type":301,"_seopress_analysis_target_kw":"","_seopress_news_disabled":"","_seopress_video_disabled":"","_seopress_video":[],"_seopress_pro_schemas_manual":[],"_seopress_pro_rich_snippets_disable_all":"","_seopress_pro_rich_snippets_disable":[],"_seopress_pro_schemas":[],"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"139558,83040,133089,75841,132494,75918","_relevanssi_noindex_reason":"","footnotes":""},"categories":[891],"tags":[],"type-de-post":[438],"hf_cat_post":[],"class_list":["post-192738","post","type-post","status-publish","format-standard","has-post-thumbnail","category-trends","type-de-post-articles"],"acf":[],"_links":{"self":[{"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/posts\/192738","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/users\/394"}],"replies":[{"embeddable":true,"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/comments?post=192738"}],"version-history":[{"count":0,"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/posts\/192738\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/media\/192744"}],"wp:attachment":[{"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/media?parent=192738"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/categories?post=192738"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/tags?post=192738"},{"taxonomy":"type-de-post","embeddable":true,"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/type-de-post?post=192738"},{"taxonomy":"hf_cat_post","embeddable":true,"href":"https:\/\/feb26.lexpress-franchise.com\/en\/wp-json\/wp\/v2\/hf_cat_post?post=192738"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}