A franchise is a popular stepping stone into business because you get access to a proven system, instant brand recognition, and a built-in support network — without some of the trials and tribulations of starting from scratch.

According to the British Franchise Association, the UK franchising sector currently contributes £19.1bn to the UK economy. Colleagues from our Franchise Development team were on hand at the event to offer support and guidance for new and existing customers on their franchising journey. 

We also heard from Phillip Bartlett, our Senior Group Economist, at a keynote discussion on macro-societal trends and the economic outlook over the coming months.

After overcoming a stagnant period of economic growth post-Covid, Phillip explained how GDP is expected to grow modestly overall, although sectors are likely to face into opportunities and challenges differently.

Phillip outlined three factors for businesses to consider:

1. How persistent could inflation be?

Inflation rates soared in 2022 but more recently had declined to below the Bank of England’s target of keeping inflation at 2%. Still, with services prices rising rapidly, the inflation rate has crept up again, reaching 2.6% early in 2025. If domestic price pressures persist, it could limit the Bank of England’s room for manoeuvre when it comes to lowering interest rates.

2. The UK job market: A source of strength for economic growth?

The UK job market has been stable, with unemployment rates at just 4.4%. Despite high employment levels, jobs growth has stalled over the past year, leading to uncertainty over the future for the workforce.

Job security is crucial to the health of the wider economy, but recent government changes to the national minimum wage and taxes have caused growing concern among employers. As a result, some companies are reducing headcount and labour costs to maintain operations.

Pip Wilkins, CEO of the British Franchise Association, has urged the Chancellor to consider measures to alleviate the strain on franchising businesses, including exemptions or partial rebates on employer NI contributions for businesses below a certain revenue threshold or tiered contribution rates based on business size and revenue.

3. Consumer spending habits

Consumer activity has shown a stark contrast post-pandemic, with consumer spending not keeping pace with growth in household incomes. Consumer confidence remains weak and the saving rate is unusually high, with total UK household saving equal to 10% of national income last year.

The International Franchise Show connects new and existing franchisees with more than 200 brands and ventures. With over 250 exhibitors in attendance and 60 live seminars, we were delighted to be there for two days.

Check out our LinkedIn channel for more key takeaways and insights.

Find out how to make your franchise a success – talk to us today.