UK franchises are on the rise
The latest franchise survey from the British Franchise Association shows the UK franchise sector hit 1,009 franchise systems in 2024 (up 8% since 2018) and now comprises 50,421 franchised units. This expansion has driven the sector’s contribution to the UK economy from £17.2 billion in 2018 to £19.1 billion, which is a 12% uplift.
This growth is unfolding against a backdrop of high-street churn.
Common pitfalls of franchise brands
While franchising enables rapid expansion, we often see early-stage brands suffering with poorly developed commercial frameworks due to the following:
- Uncertain or no established covenant strength, with confusion of lease responsibilities.
- ‘First come, first served’ territory assignments, resulting in intra-brand competition and frustration for agent and owners, often talking to multiple parties.
- Weak brand controls which can lead to variable fit-out standards and inconsistent customer experience.
- Diluted brand perception undermining investor confidence.
Best practices for a franchisor
Leading franchisors avoid these pitfalls by embedding robust property governance from the outset:
| Practice | Benefit |
| Appoint per-region franchisees (not open-season territories) | Ensures exclusivity, prevents oversaturation, and streamlines site selection. |
| Standardised franchise agreements with clear lease-assignment and underlet clauses | Landlords and franchisees both know who holds the lease, who can sub-let, and what standards apply. |
| Covenant transparency, where franchisee financials guaranteed by the parent company or via minimum net-worth tests | Protects landlords against operator default and failed lettings. |
| Centralised brand/system controls, including fit-out manuals and tech-stack mandates | Maintains consistent customer experience and protects long-term brand value. |
An example of a strong established franchised business is Subway, with significant controls over the actions of its franchisees, such as brand appearance, product displays, and locations. By issuing trademarks and ensuring consistency across locations, Subway has continued to successfully enforce its brand against copycat challengers.
What benefits do businesses stand to gain through franchising?
- Rapid expansion and nationwide coverage, through franchisees’ local market knowledge.
- Economies of scale, leading to savings via group purchasing and shared marketing
- Incentivised to succeed, as their own capital and reputations are on the line
- Agility, as smaller operators are more able to respond quickly to local trends and market shifts
- Peer support and knowledge-sharing through franchise networks.
- Centralised CRM and operating systems which provide more data to enable continuous improvement
Can any business be franchised?
In principle, yes, however not all businesses would make viable franchises. It is imperative the franchiser has the expertise and resources to be able to support their franchisees. These businesses should have a proven, replicable model, strong brand identity and robust support systems whilst also having a track record of profitability, clear market differentiators, and an active target audience to ensure scalability.
By aligning property, legal and operational teams from the outset, franchisors can turn promising concepts into enduring, high-value networks.
As franchise specialists in retail and leisure sectors, we are currently expanding concepts across the UK.
Contact us if you would like to tap into this knowledge base.