According to the latest Franchising in Ireland survey, conducted by UCD in association with Ulster Bank in 2010, there are currently more than 270 different business format franchises operating here right now, generating turnover of €2bn and employing in excess of 25,000 people. The survey also revealed the industry contributes 4,086 operating units in Ireland and offers 42,927 full-time jobs to the economy.
These statistics show the importance of franchising to the economy and how franchising presents valuable opportunities for individuals who would like to start their own business and work for themselves, but not by themselves. A variety of different types of franchises exist here now: more than half are in the service sector, a third in the retail sector and there are also a significant amount of van-based ones.
Food and drink industry franchises are the most popular and they make up a fifth of franchisors. Just under a third have held a Master Franchise for three years or less and home-grown Irish franchises account for almost a fifth of the franchise market. This is an increase of 14 per cent since 2006. The report shows that the average initial franchise fee is €24,638 and the research found that the average working capital is now €21,873, compared to €39,300 five years ago. Similarly there has been a significant decrease in total set-up costs, which have dropped from an average of €226,000 to €124,330.
Most franchise opportunities here have UK origins. The UK accounts for one third of the market and has overtaken the USA since 2006. There are also significant new entrants from the Far East’s technology-based industries too.
Why Is Franchising a Popular Business Model?
Well, franchise companies have already developed a method of doing business that works well and produces results and will provide their franchisee with ongoing operational support and training.
Franchising in Ireland remains relatively small if we compare it to the UK and the US but undoubtedly it’s a sector with lots of potential for growth in the future. As our disposable income increases, Irish consumers have become ever more quality conscious and brand aware and our consumer needs are preferably filled by iconic international franchises that are strongly branded, especially when that’s accompanied by high quality local service.
The franchise industry in Ireland is a vibrant one with a clear capacity to generate wealth and jobs here.