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.
Beyond the headlines of £19.1 billion (€22.9 billion) in economic contribution and 1,009 franchise systems, this year’s 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.
The survey and its importance
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.
“We work with an independent research company, BDRC, to ensure the data is robust and representative,” explains Pip Wilkins. “This includes everything from small startups to larger, more established brands. It’s about giving franchisors and franchisees actionable insights to strengthen their businesses.”
This year’s survey underscores the resilience of franchising, with 87% of franchisors optimistic about their company’s prospects—a clear sign of recovery and innovation in the face of economic challenges.
A resilient and adaptive sector
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 £400,000 (€479,000). Pip attributes this resilience to strong support systems within franchising networks.
“Franchising is outperforming general business. And I think a lot of that is down to the support infrastructures that franchisors have put in place,” says Pip Wilkins. “Since the pandemic, most franchisors have seen a bounce back to pre-pandemic levels or higher. Franchisors and franchisees pulled together like never before.”
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.
“The move to digital has been transformative,” Pip notes. “Franchisors are touching base more frequently, and franchisees are benefiting from peer-to-peer networking through Zoom meetings, workshops, and masterclasses.”
Growth and opportunities in specific sectors
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.
“The aging population is a key driver,” Pip explains. “In 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.”
Similarly, the children’s activities sector is filling gaps left by cuts in school funding. “Franchises are stepping in to provide extracurricular activities, ensuring that children, regardless of background, have access to physical education and skill development,” Pip Wilkins says.
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.
Challenges: recruitment and multi-unit franchising
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.
“Recruitment is tough; franchisees are more selective than ever,” Pip Wilkins acknowledges. “Franchisors need to attract individuals who are serious about building a business—not just looking for a get-rich-quick scheme.”
Another trend is the rise of multi-unit franchising, where franchisees manage multiple locations. The average number of units has risen from 4–5 to 11, particularly in sectors like hospitality. While this model offers growth potential, it also requires franchisors to rethink support structures.
“Managing multiple units is a different skill set,” says Pip Wilkins. “Franchisors need a proactive plan to train and support franchisees as their businesses grow.”
Driving diversity and inclusion
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.
“We’ve done a lot on mental health, imposter syndrome, and menopause—topics that aren’t often addressed in business,” Pip Wilkins shares. “Empower creates a space for women to come together and thrive.”
The BFA is also pushing for broader diversity through its Diversity, Equity, and Inclusion (DEI) initiatives. “Franchising is very middle-aged and white at the franchisor level, but we’re seeing more diversity at the franchisee level,” Pip Wilkins says. “It’s about creating strategies to recruit and support a more diverse workforce.”
Promoting inclusion in UK franchising
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.
As Pip Wilkins concludes, “Franchising 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.”
