As Kemi Badenoch, leader of the Conservative party said in a LinkedIn post in November 2025, "Every time I speak with business owners, from small manufacturers to family-run cafés, the message is the same: costs are rising, confidence is falling, and this government feels like an obstacle, not an ally."

The BFA holds no political affiliations, but it's difficult to disagree with the sentiment.

So why is franchising continuing to thrive?

BFA members ‘confident' for 2026

Our members are facing the same economic pressures as businesses across the UK, rising costs, the Employment Rights Bill and increased National Insurance contributions. Yet the sector continues to grow. Franchisors and franchisees are thriving and, according to a recent mini-survey of our members, 77% are either ‘Very' or ‘Fairly' confident about their business plans for 2026 albeit with a healthy dose of realism.

Background

In November 2024 we launched the results of The British Franchise Survey sponsored by NIC Local, which revealed that the UK franchise sector brings £19.1 bn into the UK economy and has a 20 year failure rate of under 6%; so, we were starting from a strong position.

Personal Services

Another notable statistic that came out of the survey was the 53% growth in ‘Personal Services' franchises from 2018 to 2024, eclipsing the growth of any other sector in franchising.  Personal Services franchises are those that deliver services directly to individuals such as children's swimming lessons, dog walking and other care-led or lifestyle services.

Repeat business model

In the main, we put the success of franchising down to two things, being based on repeating a successful business model and franchisees receiving bespoke training and support from an experienced franchisor.

Exceptional success

One franchise business model that has significantly outperformed expectations in 2025 is domiciliary home care, which also sits within the personal services sector.

Domiciliary home care

For those not familiar with the phrase, domiciliary home care is when a person who needs medical help or support, receives care in their own home, rather than go into a residential facility. With an ageing population and a care system completely unable to manage the number of people who require care, the entire sector has seen extraordinary growth over the last few years, with many of the key players in the market being franchise operations.

Outstanding businesses

Their success doesn't stop at the dramatic growth of their businesses. They're also at the forefront of harnessing advanced technological developments in patient care and providing staff and franchisees with outstanding support and training.

EFF Awards

At the EFF (European Franchise Federation) Awards in Brussels in September 2025, The UK went into the event as the only country with at least one finalist in each category and with each of them receiving a podium finish on the night. But the biggest winner of the night and the new European Franchisor of the Year, beating brands from across Europe, was British domiciliary home care brand Right at Home. 

The BFA Awards

Hot on the heels of the UK's success in Brussels, just a few weeks later, three domiciliary home care brands, Caremark, GoodOaks Homecare and CareYourWay took home the top three awards, Franchisor of the Established, Franchisor of the Expanding and Franchisor of the Year Emerging at the BFA (British Franchise Association) HSBC UK British Franchise Awards, considered the ‘Oscars' of the franchising world, confirming the sector's position as the one to beat in 2026.

As CEO of the BFA Pip Wilkins said on the night: "Whilst congratulations go to all our well-deserved winners tonight, we must pause to recognise the exceptional achievement of the domiciliary care sector.  We have long been aware of the growth and success of domiciliary care within franchising over the past few years and although no surprise, it is a testament to the professionalism of these three brands that they have swept the board tonight, particularly so soon after Right at Home's win in Brussels at the EFF awards."

What's next for 2026?

In turbulent economic and political times franchising will remain, as it always has done, a safe harbour for business investment. With 50% of start-ups closing on average within their first three years, against franchising's less than 6% commercial failure rate, it continues to makes economic sense to invest in a franchise rather than going it alone. Franchising, whether for the franchisor or the franchisee, has the upper hand, strength in numbers with multiples all pushing for one successful outcome and we fully expect to see more growth within the franchise sector in the coming year.

To find out more about franchising please visit www.thebfa.org.