UK FRANCHISING SPOTLIGHT
UK FRAN S
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BRITISH FRANCHISE ASSOCIATION INDUSTRY SPOTLIGHT
NCHISING SPOTLIGHT Franchising offers opportunities across a wide range of industries. Within this global landscape, the UK franchise market is a dynamic and multifaceted sector that has evolved from a simple business model into a sophisticated engine of economic growth Writer: Ed Budds | Project Manager: Deane Anderton
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ranchising is a business arrangement where a company allows an independent owner to run a local branch using its name, brand, and operating system. One of the greatest strengths of franchising is the sheer breadth of businesses that operate through the model. This encompasses everything from drain cleaning and domiciliary care to pet services, children’s activities, professional services, hospitality, and property. Franchising operates successfully across both business-to-consumer (B2C) and businessto-business (B2B) markets, as well as an extraordinary number of sectors. That diversity is important because it means there isn’t one single ‘type’ of franchise anymore. Instead, people can find opportunities that suit their experience, interests, investment level, and lifestyle, which makes franchising accessible to a broad range of aspiring business owners who want the independence of running their own company without having to start completely from scratch. On the flip side, one of the biggest changes happening across the industry is the continuing evolution of who becomes a franchisee. The old perception of franchising as something people do at the end of a corporate career simply doesn’t reflect the sector anymore. Today, it now concerns younger entrepreneurs, more women, and people looking for portfolio careers. Alongside a greater range of franchisors, prospective investors are asking better questions, undertaking more due diligence, and looking more closely at culture, values, support, and the relationship they will have with the franchisor – not simply assessing the financial opportunity. Technology and artificial intelligence (AI) are obviously another major trend, as franchise businesses are looking at how they can use technology to improve productivity, marketing, recruitment, customer experience, and the support they provide across their networks. The challenge, but equally the opportunity, is ensuring technology is used to strengthen human relationships rather than replace them, because franchising remains fundamentally a people business. Within this vast realm, the UK franchise sector is extremely well respected internationally and continues to thrive.
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INTERVIEW: BRITISH FRANCHISE ASSOCIATION
For over 40 years, the British Franchise Association (BFA) has been helping entrepreneurs of all kinds make vital contacts, supporting and educating franchisors and franchisees at every level of their development – from newcomers to household names. We learn more with CEO, Pip Wilkins 4 | EME Outlook Issue 73
BRITISH FRANCHISE ASSOCIATION INDUSTRY SPOTLIGHT
was a really special milestone, particularly when I think back to that 19-year-old who first walked through the doors. Because I joined the BFA at such a young age, I wouldn’t say there was one particular moment when I became interested in franchising. Instead, I grew up professionally within the industry. The more I learned about franchising, the people behind it, and the opportunities it can create, the more passionate I became about its potential. Today, I am incredibly focused on franchising, particularly ethical franchising and ensuring the sector continues to grow in the right way, with strong standards, sustainable business models, and positive relationships between franchisors and franchisees. I’ve had the privilege of seeing the industry evolve enormously over the course of my career, and I remain just as dedicated to championing its growth, protecting its reputation, and helping more people understand the opportunities that franchising can offer. EO: What, for you, continues to distinguish the association and stand out as its key attributes?
EME Outlook (EO): Firstly, could you provide us with some insight into your career at the BFA to date and explain how you became interested in the franchising industry? Pip Wilkins, CEO (PW): I’ve worked at the BFA for pretty much my entire career. I joined at the age of 19 as a Business Services Assistant and have been fortunate enough to grow both my career and understanding of franchising alongside the organisation. Over the years, I have held a number of roles within the BFA, including Events Manager, Client Services Manager, Business Development Manager, Operations Manager, and Head of Operations, before taking on the role of CEO in April 2016. I recently celebrated 10 years in the position, which
PW: For me, what continues to differentiate the BFA is the combination of our heritage, standards, and the trust we have built across the sector. We are the oldest and largest standards-based organisation for franchising in the UK, and ethical franchising has been at the heart of the association since its inception. That gives us a very clear purpose – we’re not simply a membership body; we exist to protect, promote, and strengthen franchising by setting standards and helping businesses operate in the right way. Internationally, the BFA also has a very strong reputation. We’re represented within both the World Franchise Council and the European Franchise Federation, which gives us a voice in the development of franchising standards and policy beyond the UK and allows us to bring global insight back to our members. That is why I often describe the BFA as the home of franchising in the UK. Whether someone is looking to franchise their business, invest in a franchise, grow an existing network, or simply understand what good franchising looks like, I want the BFA to be the place they naturally turn to. EO: What part of the association are you most proud of? PW: When I joined the BFA back in 1999, it was a very different organisation and franchising was a very different environment. I was often the only woman in the room at meetings, and it was a hugely male-dominated industry which, at times, could feel quite hostile to women. EME Outlook Issue 73 | 5
The Gadget Lover’s Dream Franchise
Take the first step towards owning and operating a successful Ce franchise, the gadget lover’s dream that brings unrivalled returns
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multi-award-winning and publicly acclaimed retail business, CeX trades in a focused yet complementary range of secondhand technology, gadgets, and digital entertainment products. CeX buy, sell, and exchange items such as mobile phones, video games, DVDs, Blu-ray films, computers, TVs, monitors, CDs, and more. With over 40,000 product lines bought and sold across 10 countries. CeX customers can access the CeX website to find prices for all the products on the database, meaning they don’t even have to go into a store to get a valuation.
Along with its best-in-class website, which enables customers to get up-to-the-minute prices, CeX has developed a set of bespoke computer tools that simplify the process of buying and selling goods. These bespoke tools integrate with the other internal systems of the operating model, ensuring controls are in place to maximise the performance of the business.
Constantly reviewing product supply and demand curves and adjusting prices, CeX uses its extensive experience as well as artificial intelligence (AI) input.
This limits potential depreciation and enables CeX to achieve two optimal positions on the products: an optimal
selling price that is competitive in comparison to buying the same product new, and an optimal purchasing price which brings stock into stores.
FRANCHISE OPPORTUNITY CeX has continued to build upon the success of its operating model, expanding its network of stores from the UK to Spain, Ireland, Poland, Portugal, Italy, India, Australia, Malaysia, and Mexico.
Since opening the first store in London in 1992, it has grown to more than 600 across the world, more than half of which are franchised. A CeX franchise is backed by almost 35 years of experience and development, with opportunities to roll out the brand in these territories.
Following the successful operation of its master franchise operations in Malaysia, CeX is looking for an experienced local partner or partners to develop the CeX brand as master franchisees, area developers, or joint venture (JV) partners globally. To maximise the potential of the opportunity, the following skills or experience are preferred but not essential:
• A track record in the management of medium-to-large national retail businesses. • A desire to grow the brand via
multiple outlets and the financial means to do so.
• Extensive marketing, sales, and recruitment experience, knowledge of the key product lines. • A willingness to complete six months of training in Australia, the UK, or Europe.
CEX SUPPORT AND BENEFITS CeX franchisees receive extensive support and numerous benefits from the company.
Franchise license: Includes a 10year renewable licence, exclusive territorial rights, the right to use CeX trademarks, know-how, operating methods and systems, and the ability to sub-license these rights within the granted territory. The package also includes electronic franchisee owner manuals, electronic master franchisor manuals, and operations
Quick franchisee stats
• Average monthly turnover: USD$84,0
• Achievable Gross Margins: 34 to 45 p • Average setup cost: USD$300,000.
• Initial franchise fee: Varies dependin
• Royalty: Five to eight percent depend • Marketing fees: One percent.
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manuals, complemented by various online tools and systems.
Training and launch support: This includes pre- and post-opening store support programmes, guidance on store location, and online training for internal systems and store operations. The franchise package includes: · Initial training and ongoing support · Limited competition
· Stock and pricing advice from experts ·
Ongoing support including intranet and business services
· Hands-on store identification, design, and outfit
· Bespoke EPOS designed especially for buying, selling, and exchanging goods IT solution: Support covers developing a localised CeX website, procuring and setting up
000 per store.
percent, growing over time.
ng on the size of the granted territory.
ding on final terms.
necessary equipment, providing email addresses and intranet access, and ongoing assistance from the dedicated CeX IT support department.
Design and build support: A complete turnkey solution is offered, covering compliance and comprehensive project management for each store development. In addition, the CeX marketing department provides guidance and can produce bespoke marketing materials. Commercial services: The dedicated CeX commercial department manages performance reviews, pricing strategy, stock turns, stock placement, and the introduction of new product lines. CeX is a gadget lover’s dream franchise, bringing unparalleled returns. Some of the company’s benefits include: · 655 stores worldwide · 390 stores in the UK
· 34 years of experience · Huge potential market
· 280 franchised stores in the UK
· Recession-resistant business model
TRAINING PROGRAMME We offer a wide range of training to ensure franchise owners and staff are equipped with the tools for success. This includes a seven-stage
comprehensive training programme which is supported with access to online training tools, manuals, and assessments. These include:
• Sales assistant store placement and online training. • Supervisor in-store and online training.
• Store management in-store and online training.
• Advanced store management and administration. • Operations management. • Franchise management.
• Sub-franchise management.
The training programme therefore provides practical on-site experience covering aspects of retail and sales principles, technical and bespoke point-of-sale systems and operational procedures, supervisor and store management competencies, and general franchise and business ownership principles. You will gain valuable experience across corporate and franchised stores to ensure you are fully competent in running a CeX store.
Contact Cex today to take your first step towards owning and operating a successful franchise with CeX!
“I DO THIS BECAUSE I GENUINELY LOVE FRANCHISING – I LOVE THE PEOPLE IN IT AND BELIEVE ENORMOUSLY IN WHAT IT CAN DO FOR PEOPLE” – P I P W I L K I N S , C E O , B R I T I S H F R A N C H I S E A S S O C I AT I O N
As I progressed through the association and found myself in a position where I could influence change, I became determined to help create an organisation where everyone felt they could belong. For me, that means creating an inclusive environment for people of different backgrounds, cultures, races, religions, and sexual orientations, as well as those with mental health challenges, neurodivergences, or physical disabilities. I believe everyone should be able to be their authentic selves and have the same opportunity to succeed. One of the things I am particularly proud of is launching our Empowering Women in Business (EWIB) event 12 8 | EME Outlook Issue 73
BRITISH FRANCHISE ASSOCIATION INDUSTRY SPOTLIGHT
RECENT BFA PROJECTS • The National Franchise Survey sponsored by NIC Local – The BFA’s National Franchise Survey is one of the most important pieces of research it undertakes. The last survey, carried out in 2024, gave the BFA an incredibly detailed picture of the UK franchise landscape, and the organisation is now beginning the next research cycle, with new findings due to be published in early 2027. The data helps understand not just how big franchising is, but who is buying franchises, their age and gender, how profitable franchise businesses are, which sectors are growing, and how the profile of franchising is changing over time. • Taking franchising into education – The BFA is now developing a franchising educational resource pack, which members can download and take into schools, colleges, and universities. The resource will provide an accessible introduction to franchising, including basic facts, an explanation of how the model works, video testimonials from people within the sector, and the opportunity for presenters to incorporate their own entrepreneurial story. The BFA hopes to launch the resource by the end of 2026.
years ago. It started from a desire to create a space where women could come together, learn from one another, build confidence, and celebrate their achievements. Today, it has grown into one of the most successful flagship events in our sector. Seeing what it has become, and the community that has grown around it, is heartwarming. More broadly, though, I think what I am most proud of is how much the BFA itself has changed. We have worked hard to become a much more open, inclusive, and progressive association, whilst continuing to champion the highest standards in ethical franchising. That change hasn’t happened overnight, and there is always more work to do, but I am proud to have played a part in moving us forward. I am also enormously grateful to our Board and my colleagues. Meaningful change only happens when people are prepared to come on the journey with you, and they have given me the support and freedom to evolve and change the association enormously. I certainly don’t take that for granted.
• Next generation of entrepreneurs – Alongside its recent education work, the association is also taking franchising into spaces where it hasn’t traditionally had a strong presence. In September 2026, the BFA attended Ideas Fest, often described as the ‘Glastonbury for business’, where it hosted a dedicated Franchise Launch Pad and delivered four presentations across the two-day event.
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EO: Could you describe some of the notable recent achievements that have contributed to the ongoing growth of the sector? PW: I don’t think I could point to one single achievement and say that’s what has driven the growth of franchising. For me, everything the BFA does is ultimately about helping to move the dial for the sector, and it is the cumulative impact of lots of activity that makes the difference. Our role is to create the conditions in which good franchising can thrive. That means maintaining and promoting high standards, supporting our members to build stronger businesses, educating prospective franchisees, providing research and insight, creating opportunities for people to connect and learn from one another, and representing franchising at a national and international level. Our PR activity is an important part of that. Last year alone, we achieved an audience reach of 6.7 billion, helping us take positive messages about franchising far and wide.
UK FRANCHISING KEY STATISTICS The BFA’s last National Franchise Survey, which was sponsored by NIC Local, found that: • Franchising contributes £19.1 billion to the UK economy. • The BFA has had a failure rate for franchisees of less than six percent for over 25 years, compared to 50 percent of all businesses failing within their first three years. • Today, there are over 1,000 franchise systems in the UK operated by 50,421 franchisees and employing over 770,000 people.
Every time we secure positive coverage for franchising, challenge an outdated perception, or put credible information about the sector in front of a new audience, we are increasing awareness and confidence in the model. EO: In terms of creating a lasting legacy in the sector, what does that entail? PW: I do this because I genuinely love franchising – I love the people in it and believe enormously in what it can do for people. If, along the way, I can help raise standards, open franchising up to new audiences, create opportunities for people who might never otherwise have considered business ownership, and leave the sector a little stronger than I found it, then I will be incredibly proud of that. I also think legacy is rarely about one person or big achievement. It is about the things you build that continue to have an impact; the people you have supported, relationships you have created, and opportunities that exist because you were prepared to keep pushing for them. EO: What are some of the challenges you have encountered recently and how were they overcome? PW: Many of the challenges we face as an association are a direct reflection of the challenges our members are experiencing. Changes in government policy, employment legislation, taxation, and the wider economic environment can all have a significant impact on businesses, and therefore on both franchisors and franchisees. Our role is not necessarily to remove those challenges – often they are outside of anyone’s control – but to make sure our members are informed and supported to respond to them. That means constantly listening to what our members are telling us and understanding where the pressure points are, so we can ensure they have access to the right information, education, and expertise at the right time. Whether that is through webinars, specialist seminars, events, or direct member support, we need to be agile enough to respond quickly when the landscape changes. Ultimately, our job is to help our members navigate change with confidence – we can’t control the environment they are operating in, but we can make sure they don’t have to navigate it alone. EO: What are your key priorities for the coming year? PW: Looking ahead, 2026 is a particularly significant year for the BFA as we prepare to celebrate our 50th anniversary in 2027. It gives us an opportunity not only to
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BRITISH FRANCHISE ASSOCIATION INDUSTRY SPOTLIGHT
“ULTIMATELY, OUR JOB IS TO HELP OUR MEMBERS NAVIGATE CHANGE WITH CONFIDENCE – WE CAN’T CONTROL THE ENVIRONMENT THEY ARE OPERATING IN, BUT WE CAN MAKE SURE THEY DON’T HAVE TO NAVIGATE IT ALONE” – P I P W I L K I N S , C E O , B R I T I S H F R A N C H I S E A S S O C I AT I O N
reflect on five decades of championing ethical franchising in the UK but, more importantly, to think about what the next 50 years should look like. Engaging the next generation with franchising is a must for us. We want more young people to understand that it is a credible and exciting route into entrepreneurship and business ownership, and our educational resources and outreach will be an important part of achieving that. Alongside this, I want to see us continue to grow the BFA’s representation of UK franchisors. The stronger this is, the stronger our collective voice becomes, whether we are advocating for the sector, setting standards, sharing best practice, or protecting the reputation of ethical franchising. Ultimately, our ambition is for the BFA to represent the majority of the UK’s franchise sector and for membership to be seen as the natural home for any business serious about franchising well. Research will also be a major focus. Our next National Franchise Survey will give us a fresh picture of the size, performance, and changing profile of UK franchising, and we will be launching those new statistics through the next
edition of the British Franchise Journal. I am particularly excited to see what has changed since our last research in 2024 and what that tells us about where the sector is heading next. So, whilst our 50th anniversary will rightly be a moment to celebrate everything the BFA and its members have achieved, I want it to be equally focused on the future. Our priorities are about building the next generation of franchisees, representing more of the sector, continuing to provide the evidence and insight that helps it grow, and ensuring the BFA remains as relevant and influential for the next 50 years as it has been for the last 50.
Tel: 01235 820470 mailroom@thebfa.org www.thebfa.org
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Tel: 01235 820470 mailroom@thebfa.org www.thebfa.org
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