The most recent 2024 Franchise Industry Survey[i], sponsored by NIC Local, revealed some very impressive results; none more so than the 53% growth in the ‘Personal Services’ sector. Pip Wilkins QFP, CEO of the BFA (British Franchise Association) digs deeper to find out what was behind such enormous growth.
Info: Since 1977 we, The BFA (British Franchise Association), has been the UK’s trusted franchising network, providing accreditation, education, and expert guidance. Committed to ethical franchising, we help franchisors and franchisees to build sustainable businesses with integrity and confidence.
Part of our job is to monitor the size and financial health of the sector, which we did recently with the 2024 Franchise Industry Survey, sponsored by NIC Services Group.
The 2024 franchise industry survey
Some of the standout statistics revealed in the survey, included: £19.1 billion contribution to the UK economy; £400,000 average turnover of a franchise unit and a less than 1% ‘commercial failure rate’, which compares very favourably to the stat that half of all new businesses, fail within the first three years[ii].
Personal services growth
Those figures notwithstanding, there was one other statistic that surprised many people – that the ‘Personal Services’ sector grew by 53% from 2018 to 2024. This means a growth in the number of franchise systems or brands rather than of franchisees.
To quote from the survey itself: “The Personal Services sector has witnessed an impressive 53% uplift, highlighting the increasing demand for services tailored to individual and family needs. This sector is incredibly diverse, encompassing everything from home care for the elderly to entertainment and tutoring for children, personal training, and pet services. This surge in personalised services confirms the evolving expectations of UK consumers, who increasingly value convenience, specialised attention, and high-quality care across various aspects of their lives.”
Molly Maid
One sector that comes under the ‘personal services’ banner is domestic cleaning. The domestic cleaning market in the UK is worth £8.5 billion, of which BFA members Molly Maid have a £26m+ market share and have seen their operation grow by 7-8% every year.
Kanika Srivastava, the marketing manager at domestic cleaning franchise Molly Maid, sheds some light on the growth of the sector.
Post brexit/Covid boom
“Whilst many businesses suffered during Brexit and then Covid, ours boomed.” She explains: “the exit of European workers after Brexit meant a lack of traditional ‘cash in hand’ cleaners and homeowners were forced to seek out established providers like Molly Maid, to provide their regular domestic cleaning service.”
This change from cash-in-hand to domestic cleaning service staff obviously meant an increase in cost; how did Molly Maid and their franchisees manage this with their clients?
Ethical employment
Kanika says: “There was certainly an educational aspect to that post Brexit time; we had to explain to our new clients that our cleaning staff are fully employed, benefitting from sick and holiday pay, and in turn, our fees are higher, but in return they are getting a professional and reliable service and the knowledge that they are working with an ethical company who pay their staff appropriately.”
Valued service
And presumably this strategy worked? “Absolutely and they’ve voted with their wallets by remaining with us too.” said Kanika. “Far from higher prices putting people off, we have had to raise our prices by 30% over the last few years to keep up with the National Living Wage, but our cancellation rate has gone down; which shows just how much our clients value our service.”
Covid was the next big boom time for Molly Maid and their 73 franchisees.
Infection busting products
Kanika explains: “Suddenly cleanliness of homes was on everyone’s lips and people rushed to have their homes professionally cleaned. A big winner for us was the launch of our own cleaning products which included ‘Protect’, which kept a surface infection free for up to seven days after application. Clients liked knowing we were using outstanding products in their home to protect them and their families.”
Free time is precious
Looking at the wider success of the ‘Personal Services’ sector, Kanika shares this insight: “I think things have changed a lot over the past couple of years, particularly since Covid. Couples and families are generally happy to sacrifice a meal out a week, to not have to spend their precious free time cleaning their house, particularly in a home where both parents are working. Similarly, they are happy to spend money on children’s swimming or dance lessons and having their pets walked. Their time is very important to them and if they can pay for a service to enhance their lives, they will.”
What does this mean from an investment point of view for franchisees?
Opportunity for prospective franchisees
“The results of the BFA survey confirmed something that everyone in the ‘Personal Services’ sector already knew; clients want our services and are willing to pay a premium for the very best, which means an excellent investment opportunity for potential franchisees. Naturally they should choose a franchise brand with an outstanding record for performance and support; we invest heavily in marketing for our franchisees and are proud to be the only domestic cleaning franchise in the top 10 of the Elite Franchise 100 and we regularly take part in the Work Buzz Franchise Satisfaction Survey, but the future really is looking rosy for anyone looking to invest in a personal services franchise and we are confident the next survey will confirm our thoughts that this growth period isn’t over yet.”
Read more at The meteoric rise of UK ‘personal services’ franchise brands - Elite Franchise Magazine