Highlights from the Franchise Survey

• There are now 718 franchise systems operating in the UK, with 31,300 franchisees.

• 88% of franchisees claim to be profitable.

• 327,000 people are employed in franchising.

• 39% of franchisors still identify a lack of suitable franchisees as the biggest barrier to expansion.

• Turnover in the franchising sector fell to £9.1 billion, with the average franchised business turnover amounting to £291,000.

• On average franchisees pay an estimated 7.7% of their sales in recurring fees to their franchisor.

• Relationships between franchisees and franchisors continue to be healthy with exactly the same percentage as last year, 86%, reporting satisfaction in their dealings.

• 100% of franchisors provide training, either "in-house" or a combination of "in-house" and externally sourced.

• The two biggest sectors in franchising continue to be, Business & Commercial Services and Property Services. Personal Services has seen the biggest increase, 19%.

• 60% of franchisees believe their business will improve during the following year.

• 79% of franchisees are male.

• The average age of a franchisee is 45.

• 80% of franchisees are married.

• 65% of franchisees were in salaried employment before taking on their current franchise.

Source: Franchise Finance, Morris & Co., Chartered Accountants