Edinburgh Napier University

  In the two decades prior to 2000, the UK franchise industry showed substantial growth. Subsequently, however, this growth appears to have reached a plateau, with growth of less than 1 per cent. Franchisors suggest that the biggest barrier to growth is a lack of suitable franchisees. One possible reason for the dearth of potential franchisees is a lack of public awareness of franchising and the opportunities it affords for both self‐employment and small business development. This paper examines, therefore, public perceptions of franchising in the UK; how well the concept is understood, how it is perceived and the policy implications. The study is based on a sample of 1,257 members of the public surveyed in five city centres in the UK. The results reveal that approximately a fifth of those questioned had no comprehension of the term franchising, while a further third showed limited understanding. Only a tenth demonstrated a clear grasp of the term. The paper concludes that, if franchising is to continue to grow and to achieve its potential for the creation of self‐employment and the growth of small firms, public awareness needs to be raised and the image of the sector improved.