The Irish Franchise Association has announced results of the latest all-Ireland Franchising in Ireland Survey conducted by Franchise Direct. This series of studies, conducted regularly over the past 20 years, charts the progress of the Franchise Industry in Ireland.
The survey highlights a marked increase in turnover for the Franchise sector to €2.099 billion representing an increase of 69% since the last survey in 2004 and represents a five-fold increase in sales through franchised businesses over the last decade for business format franchises excluding the very significant turnover of retail symbol groups. The past ten years has seen significant growth in franchising throughout the country, with the number of franchise systems doubling since 1997. There are currently 270 active systems in Ireland, representing a net increase of 34% since the 2004 survey. This figure compares to 759 systems in the UK. It is estimated that franchise systems in Ireland provide 25,461 jobs. This consists of jobs directly created by franchises, but excludes the additional indirect but dependant jobs created by suppliers to the franchisors and franchisees. This figure represents a 42% increase since the 2004 survey. The fact that the employment level has grown more than threefold in the last ten years shows that the franchise industry is a valuable contributor to the Irish economy. The survey identified a number of contributing factors to the strong growth and success of the sector including the favourable Irish economy and growth in disposable income making Ireland an attractive location for Franchises from all over the world. Further contributing factors include the growth of the service sector, brand loyalty, entrepreneurship and ability to adapt to change. Irish Franchise Association Chairman, John Green, said "I am delighted that this survey confirms the continued strong growth in the franchise industry here. It is an important sector of the Irish economy with record sales and employment. Business Format Franchising has become a more popular method of expanding an existing business as a franchisor, and starting a new business as a franchisee." The findings of the 2006 survey demonstrate the vibrancy of the franchise industry in Ireland, and its capacity to generate jobs and wealth. Franchising is now a significant contributor to new business start-ups throughout the country. There is nothing to suggest that this upward trend won’t continue. On the contrary; franchising is making its mark around the world, as established brands, and some newcomers, expand further and further into international markets, creating global brand awareness for themselves in the process. There is no reason to expect that Ireland will not continue to be subject to the same penetration by franchise companies seeking new, lucrative locations for their products and services.