Franchising, Scotland’s Unexpected Economic Hero
Franchising has often been viewed as an unnecessary addition to the mainline economy. While deemed a useful tool for developing brand awareness, many businesses have passed it off as merely an activity that ‘plays at the margins of GDP’.
Franchising Growth Rates Are Rising
However, recent data collected by the British Franchise Association (BFA) suggests otherwise. The statistics demonstrated that franchising amounted to approximately £800 million of the Scottish economy in 2015. According to the BFA, based on the current growth rates, by 2020, this could increase to at least £1 billion.
It will come as a surprise to some that there are around 2,200 franchisee-owned business in Scotland and last year they created 32,000 jobs. It is clear that in actual fact these businesses are a whole lot more than just minor GDP contributors. The same can be said throughout the UK. According to the BFA, the franchising’s turnover exceeds £15 billion.
A Virtuous Circle
It would seem that franchising is in fact a very ‘virtuous circle’. Local businesses and big-named brands work off of a mutually beneficial relationship, assisting in each other’s growth, whilst maximising employment and generating wealth. Plus, for some of the more inexperienced franchisees, a network of professional services including accountants and lawyers is on hand to provide advice on how to run their own business.
There is no denying the financial potential of franchisees. At Jani-King, we guarantee that all our franchisees will be offered initial business. In 2015, we saw an average turnover of £72k for franchisees per month.