A new survey by the British Franchise Association (BFA) shows that UK franchise businesses are entering 2026 with a high level of confidence, despite ongoing economic and regulatory challenges.
The findings come from the BFA’s newly launched ‘Question of the Month’ initiative, designed to provide timely insight into sentiment across the UK franchising sector.
What Did the BFA Ask Its Members?
As part of the survey, BFA members were asked a simple but revealing question:
“How confident do you feel about your business plans for the year ahead?”
Who Took Part?
The survey was sent to the full BFA membership, including franchisors, franchisees and professional service providers. Respondents ranged from single owner-operators to large, multi-unit franchise brands with extensive networks of franchisees and employees across the UK.
Survey Results: Confidence Remains High
The results indicate strong optimism across the UK franchising community:
• 28.30% said they were very confident
• 49.06% said they were fairly confident
• 20.75% said they were a bit uncertain
• 1.89% said they were not confident right now
Notably, no respondents selected “not confident at all”, highlighting the sector’s overall resilience.
What’s Driving Franchise Confidence in 2026?
Feedback from respondents was overwhelmingly positive, while still acknowledging the realities of the wider economic environment.
In an interview with BFA, Graham Duckworth, Franchise Sales Director at Driver Hire, commented:
“Our outlook for 2026 is positive; however, the degree of success will be influenced by external factors, notably ongoing economic uncertainty and the potential implications of the Employment Rights Bill/Act. While these macro conditions present challenges, our own activities should help ensure we remain well-positioned to perform strongly.”
Phil MacKechnie QFP, Director of Franchise Development at Radfield Home Care, added:
“We’re seeing strong fundamentals across the home care franchise sector heading into 2026. Yes, there are headwinds – the Employment Rights Bill, cost pressures and competitive intensity – but these are benefiting established operators with proven systems and satisfied franchise partners. Demand continues to grow, and franchise entrepreneurs who can navigate regulatory complexity will find genuine opportunity.”
What Does This Mean for Franchising and the Wider UK Economy?
The survey reinforces the long-held view that franchising remains one of the most resilient routes into business ownership. With a failure rate of less than 6% for over 20 years, UK franchising continues to outperform many other business sectors, even during periods of economic uncertainty.
The BFA’s View
Pip Wilkins, CEO of the British Franchise Association, said:
“It was heartening to see that 77% of members who responded were ‘very’ or ‘fairly’ confident about their business plans for 2026, which mirrors the sentiment we’re hearing across the sector. Our failure rate is the envy of many industries and proves that a tried and tested business model, supported by expert training and guidance, remains a recipe for success.”
What Happens Next?
The Question of the Month initiative has been launched to provide journalists and stakeholders with regular, practical insight into the UK franchising landscape. Results from future surveys will be published on the BFA website at www.thebfa.org.
