Franchise businesses stayed robust during the recession with the average franchise’s turnover increasing by three per cent in 2009, research from the British Franchise Association (BFA) has found.
The BFA’s annual survey revealed that the sector did well overall last year despite the downturn, contributing £11.8 billion to the UK’s GDP ― an increase of £400 million on 2008. In addition, the total number of franchisors in the UK rose to 842 in 2009, up from 835 on the previous year.
The poll also found that fewer franchises are currently trading at a loss compared to a decade ago. During the 1990s recession, only 70% of all franchise businesses were profitable, compared to 89% in 2009.
“Franchised businesses have weathered the recessional storm extremely well, which we should not be surprised about if we look at how franchising has proven itself over the years,†said BFA director general, Brian Smart.
