Economic outlook still bleak… but franchise industry continues to thrive

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The latest survey by NatWest and the British Franchise Association has revealed that, despite the challenging economic climate, the franchising industry increased its turnover in 2011 to £13.4bn last year – and increased its economic contribution by 8 per cent.

While many sectors have struggled over the past 12 months, incredibly nine out of ten franchise businesses posted a profit. And this is just the beginning.

Despite the economic uncertainty, 76 per cent of respondents to the survey expect business to further improve in 2012. Exports are particularly doing well, with one in three franchisers trading overseas and more expected to follow in the coming months.

The positive news doesn’t end their either.

Whilst unemployment has continued to rise in 2011, 73,000 jobs have been created in the franchise industry and the number of franchising systems operating across the UK increased to 929. With more people expected to holiday in the UK this year rather than abroad, there is likely to be a further boost to hotels, the best-performing franchising sub-sector; also,  discount retail franchises are also expected to benefit from the current economic climate.

It is fair to say that franchising is doing more than its bit to create jobs and boost the beleaguered UK economy.

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