UK Franchise Survey Feedback

The purpose of this independent survey is to canvass opinions and if trends highlight opportunities to improve and change for the better the culture, regulation and ethics in franchising then to present these finding to the relevant bodies for review and change.

If you have any questions on this campaign, please feel free to contact us.

Are you :-

Franchisee 24 / 30

80.00%

Franchisor 1 / 30

3.33%

A Prospective Franchisee or interested in franchising 5 / 30

16.67%

Which Franchise Industry best describes your business?

Food, Restaurant or Catering 0 / 16

0.00%

Healthcare, medical or senior care 10 / 16

62.50%

Travel, Hotel or entertainment 1 / 16

6.25%

Fitness, sport, beauty or Education 5 / 16

31.25%

Retail, Automotive, courier or delivery 0 / 16

0.00%

Home Improvement, cleaning or home and personal services 0 / 16

0.00%

Profession Services, employment, business to business or business opportunities 0 / 16

0.00%

Other 0 / 16

0.00%

How profitable is your business?

Running at a loss or not taking an industry-standard director’s wage 3 / 23

13.04%

0% - 5% profit margins after an industry-standard director’s wage 10 / 23

43.48%

Over 5% profit margins after an industry standard director’s wage 10 / 23

43.48%

Are you aware that the UK has no franchise-specific legislation which are available in many other countries?

Yes 10 / 32

31.25%

No 22 / 32

68.75%

Subsequently knowing UK franchising in unregulated would you have taken more legal advice prior to entering into a franchise agreement?

Yes 17 / 21

80.95%

No 4 / 21

19.05%

Did your franchisor disclose a document containing essential information before you started including relevant financial information and contact details of past and current franchisees?

Yes 1 / 23

4.35%

No 22 / 23

95.65%

Did it include contact details of current franchisees and their network?

Yes 3 / 14

21.43%

No 11 / 14

78.57%

Did it include contact details of past franchisees including details why they left the business?

Yes 0 / 14

0.00%

No 14 / 14

100.00%

How satisfied were you with its relevant financial content

Extremely satisfied 0 / 14

0.00%

Moderately satisfied 5 / 14

35.71%

Not satisfied at all 9 / 14

64.29%

In retrospect, how satisfied were you with the overall content?

Exceeded 0 / 14

0.00%

Met 0 / 14

0.00%

Fell short 14 / 14

100.00%

Before entering the franchise agreement, how persuasive was your franchisor in you taking independent legal advice?

Very persuasive 1 / 22

4.55%

Moderately persuasive 12 / 22

54.55%

Discouraging 3 / 22

13.64%

Did not mention 6 / 22

27.27%

Did you take independent legal advice before signing your franchise agreement?

No 9 / 22

40.91%

Yes and no changes were required 5 / 22

22.73%

Yes and Franchisor submitted to all reasonable demands 0 / 22

0.00%

Yes and a fair compromise was met where both parties conceded ground for a mutual resolution 2 / 22

9.09%

Yes and the franchisor took a hard non-negotiable ‘take it or leave it’ stance 6 / 22

27.27%

Did you consider not taking independent legal advice because you believed UK franchising was independently regulated?

Yes 18 / 22

81.82%

No 4 / 22

18.18%

Does your franchisor disclose transparently any rebates or kickbacks for compulsory contractual work in a franchisee’s business?

Yes 3 / 22

13.64%

No 19 / 22

86.36%

How satisfied are you with the detail?

Extremely 0 / 14

0.00%

Moderately 4 / 14

28.57%

Not at all 10 / 14

71.43%

How important do you believe transparent financial disclosure is?

Extremely 12 / 14

85.71%

Moderately 1 / 14

7.14%

Not important at all 1 / 14

7.14%

How satisfied are you with your franchisor’s contractual supply chain costs?

Extremely satisfied 0 / 21

0.00%

Met Expectations 10 / 21

47.62%

Fell Short 11 / 21

52.38%

Are refit/renewal costs in danger in putting your business under economic duress?

Yes 15 / 21

71.43%

No 6 / 21

28.57%

Does your franchisor and/or agreement offer and encourage independent mediation?

Yes 1 / 21

4.76%

No 20 / 21

95.24%

How important would you rate independent mediation?

Extremely important 10 / 21

47.62%

Moderately important 8 / 21

38.10%

Not important at all 3 / 21

14.29%

Does your Franchise agreement have a fair and transparent renumeration for the end of the franchise term?

Yes 1 / 21

4.76%

No 20 / 21

95.24%

How satisfied are you with it?

Exceeds expectation 0 / 12

0.00%

Meets expectation 1 / 12

8.33%

Falls shorts of expectation 11 / 12

91.67%

How Important is an exit strategy to you?

Extremely important 13 / 21

61.90%

Moderately important 6 / 21

28.57%

Not important at all 2 / 21

9.52%

Does your Franchise Agreement have any provisions should the franchisor go into bankruptcy or liquidation?

Yes 3 / 21

14.29%

No 18 / 21

85.71%

Are you a member of the BFA (British Franchise Association)?

Yes 3 / 21

14.29%

No, I am denied membership as my franchisor is not a member 14 / 21

66.67%

No, As my franchisor is a member I would like to join 4 / 21

19.05%

No and I am not interested in joining 0 / 21

0.00%

Given that the BFA supports the smooth running between franchisors and franchisees in their ‘code of ethics. Do you believe it should be optional for franchisors to join the BFA and commit to their ‘code of ethics’ which mirrors the European code?

No - I believe it should not be optional for a franchisor to sign up to a ‘code of ethics’ 13 / 21

61.90%

Yes - I believe it should be optional for franchisors to sign up to a ‘code of ethics’ 8 / 21

38.10%

How would you rate the Mutual Respect / Satisfaction with your franchisor over the last 5 years?

Extremely satisfied 0 / 21

0.00%

Moderately satisfied 9 / 21

42.86%

Not satisfied at all 12 / 21

57.14%

Since you started in franchising has the Mutual Respect?

Improved 0 / 20

0.00%

Remained the same 3 / 20

15.00%

Declined 17 / 20

85.00%

Would you support a review in framework of franchise legislation and regulation in the UK?

Yes 15 / 20

75.00%

No 5 / 20

25.00%