Franchise sector turnover up five-fold in last decade
TURNOVER in Irish franchising sector has grown more than five-fold over the past decade, turning it into a €2 billion-plus industry, according to a new report.
Between 1997 and last year, turnover in the sector, where big players include McDonalds, O'Briens, Four Star Pizza and Snap Printing, has soared from €397m to €2.1bn. Employment in the sector has jumped from 7,400 a decade ago to 25,461 in 2006.
Symbol groups such as Supervalu, Centra and Spar were not included in the survey, which was conducted by Franchise Direct on behalf of the Irish Franchise Association.
This is the first such report in three years and shows that turnover for the sector has increased 69pc since the 2004. It does include revenues of franchises that are members of the association, such as Supermacs.
There are a total of 270 different franchises in the country. Indigenous Irish franchises account for only 14pc of the market, although this is up from a figure of 11pc in 2004.
The US remains the dominant player in Ireland, accounting for 41pc of franchises, with the UK coming in a close second at 36pc.
"While there is a perception that the franchise sector is mainly confined to the fast food industry, more recent trends have been influenced by changing demographics, people becoming more health conscious and being cash rich and time poor," said Michael Bradley, chief executive of the association.
Bradley highlights Home Instead Senior Care, provider of home care services for the elderly, fitness chain Ladies Workout Express, Zumo Juice Bars and Mobile Dog Wash, a pet grooming service, as growing franchises in Ireland which are targeting these trends.
The cost of setting up a franchise varies widely, with the survey citing a total investment range from as little as €7,500 to as much as €7m. The average figure stands at €226,000.
- Joe Brennan
