Starting Up A Franchise Business – An Overview


Many famous names operate franchises around the UK – from Kall Kwik to Coffee Republic. In fact, there are over 800 different businesses operating as franchises across the UK.

Franchising, or “business format franchising” is the popular term used to describe the granting of a licence by one party (the franchisor) to another (the franchisee) which allows the franchisee to set up in business using the trade name and using the trademarks of the franchisor.

Typically, the franchisor will licence the trademarks and proven methods of its business operation to the franchisee for an initial set up fee and a cut of future sales or profits.

Facts & Figures
According to the 2008 Natwest / BFA Franchise survey, the franchising industry in the UK grew at 15% last year, whereas the UK economy as a whole grew by just 3.1%.

There are over 800 active franchises in the UK, with an estimated 34,200 franchise units in operation, employing over 380,000 people. The industry as a while turns over an estimated £12.4 billion per year.
36% of those who responded operate on a sole trader basis, 15% partnerships and 49% limited companies. You can find more about these business structures in our Company Formation section.

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