According to the newly released 2007 NatWest/British Franchise Association survey the sector has grown by 44 per cent in 10 years, taking the total number of franchised outlets up to nearly 34,000 and the number of systems up to 781.

And as the sector grows in size, so too does the strength of its success, with 93 per cent of franchisees showing profitability.

NatWest’s national franchise manager Mark Scott said: “With figures like these, it is hardly surprising that the number of franchisors showing confidence in their own business remains very high, with 80 per cent feeling positive about their prospects, and 84 per cent continuing to feel either motivated, or highly motivated.

“This year we’ve also seen an increase in franchisees looking more for growth potential or affiliation to a well-known brand. This certainly mirrors what we are seeing at NatWest with regards to new customers coming through our doors.” he added.

Growth in the sector through the number of systems and units operating in the UK means that franchising now employs 371,600 people.

Dan Archer, head of marketing at the bfa, said: “The franchise sector remains a significant employer and last year alone created an additional 7,000 jobs in the UK. While we continue to hear media stories about redundancies, it seems that franchising is not only helping people to realise their dream of self-employment but is also impacting on job creation, helping to plug the gap created by corporate redundancies.”

He views the £500 million rise in turnover from the previous year as testimony to the position of franchising as a key contributor to the UK economy.

“There are more people expanding their business through franchising, more people starting their own business through franchising, and more people employed because of franchising, signifying the impact the sector has both at a national and local level,” he added.

The report also showed an increase in the number of franchisors looking to expand their systems overseas, with half of those who don’t currently operate on foreign soil admitting to having plans to do so in the future.

For prospective franchisees and franchisors, it is important to carry out thorough research on the franchise market and the industries you may be interested investing in.

The annual NatWest / bfa survey is an excellent source if information with the most up to date statistics on franchising in the UK.

Copies are available for purchase from the bfa. Call 01491 578 050 or log on to www.thebfa.org for more details.