2005 was a bumper year for franchising, according to a survey by NatWest and the British Franchise Association.
Industry rose 13 per cent to £10.3 billion.
The number of franchise systems is also growing at its fastest rate since 1999.
It suggests there are now 759 active UK franchises, a net increase of six per cent.
Over ten years the number of active franchising systems has expanded by 60 per cent. From 1995 to 2000 annual growth averaged seven per cent, before slowing to three per cent.
Over 90 per cent claim to be trading profitably, an increase from 88 per cent in 2004.
Almost nine in ten fran-chisors and 61 per cent of franchisees expect their business to improve.
In ten years, turnover has grown 75 per cent from £5.9 billion to £10.3 billion. Franchising also employs 141,000 more people (from 223,000 to 364,000) than it did a decade ago.
The average turnover for franchised businesses broke through the £300,000 barrier in 2005, hitting £318,000, an increase of nine per cent (£27,000) from 2004.
Mark Scott, national franchise manager for NatWest, said: "This has been a tremendous year for franchising and shows how the industry has gone from strength to strength, experiencing growth with all of the key indicators, such as turnover and profitability."
Brian Smart, director general of the BFA, said: "In passing the £10 billion mark the industry highlights something that those within it have known for some time - franchising is big business.
"Ten consecutive years of growth in the number of franchised businesses, together with record levels of employment, means that more businesses are generating more turnover than ever before." ..SUPL: