Turnover in the franchise sector in Ireland has reached nearly €2.1 billion, according to a new survey of the sector conducted by Franchise Direct.
This is a rise of 69 per cent since the previous study in 2004, and represents a five-fold increase in sales through franchised businesses over the past 10 years, excluding the very significant turnover of the symbol groups.
The past decade has seen significant growth in franchising throughout the State, with the number of franchise systems doubling since 1997, the association said. There are 270 active systems in Ireland, representing a net increase of 34 per cent since the 2004 survey. This figure compares to 759 systems in Britain.
It is estimated that franchising in Ireland provides 25,461 jobs, a 42 per cent rise on the numbers employed in the last survey in 2004. This consists of jobs directly created by franchises, but excludes the additional indirect but dependant jobs created by suppliers to the franchisors and franchisees, according to Franchise Ireland.
Indigenous Irish franchises account for a small percentage of the franchise market, with only 14 per cent of systems originating in the State. The US remains the dominant player for franchises in Ireland, with 41 per cent having originated there, while Britain accounts for 36 per cent.
The percentage of franchises from countries other than Ireland, the US and Britain remains low at 9 per cent.
Meanwhile, DIY Group 4Home Superstores opened its first franchise store and 11th outlet nationwide this week. The move is the first step into franchising outlets as part of a rapid expansion programme that has seen the group open eight new stores nationwide in the past 12 months with an investment of more than €10 million.
