Introduction to the QAA State of the Nation Series
The Quality Assurance Agency for Higher Education, known as QAA, has launched its State of the Nation series to provide an evidence-based examination of key issues facing the UK tertiary sector. This initiative aims to move discussions beyond headlines and assumptions toward a clearer understanding of trends in domestic franchising and artificial intelligence, among other priorities. The series addresses four main areas: domestic franchising, artificial intelligence, the costs associated with maintaining quality, and methods for measuring quality. By drawing on data from the Office for Students and insights from sector engagement, the reports seek to inform policy, regulation, and institutional practices in a targeted manner.
The Focus on Domestic Franchising in UK Higher Education
Domestic franchising in UK higher education involves arrangements where an awarding institution, typically a university, subcontracts the delivery of its programmes to another provider, such as a college or specialist organisation. These partnerships have grown significantly in recent years, prompting scrutiny from regulators and the public. The QAA report titled "Is growth outpacing quality? The changing shape of franchised higher education," published on 26 May 2026, offers the first comprehensive analysis of Office for Students data on this topic. It reveals a nuanced picture rather than a uniform assessment of risk.
Between 2019-20 and 2023-24, the number of UK-domiciled students in full-time, first-degree franchised provision rose by 343 per cent. In contrast, student numbers on courses delivered directly by awarding institutions grew by just 2 per cent over the same period. Business and management programmes drove much of this expansion, accounting for 78 per cent of the growth in franchising. By 2023-24, 72 per cent of all franchise students were enrolled in these subjects.
Key Data on the Scale and Concentration of Franchising
The report highlights a high degree of concentration in franchising activity. While 28 per cent of all Office for Students-registered providers engage in some franchised provision, just nine lead providers account for 70 per cent of full-time undergraduate franchise awards. Six of these nine institutions had more students taught through franchise arrangements than through direct delivery in 2023-24. For three of them, franchised provision represented over three-quarters of their total activity.
On the delivery side, the landscape has shifted dramatically. In 2017-18, no delivery providers had more than 1,000 students in franchised arrangements. By 2023-24, at least six exceeded this threshold, with two surpassing 7,000 students. One delivery provider has even become the largest provider of full-time undergraduate provision in the UK through franchising.
Student Outcomes and Regulatory Thresholds
Outcomes vary considerably depending on the scale and pace of growth. Partnerships that expanded by more than 1,000 students between 2020-21 and 2023-24 showed concerning patterns: 65 per cent fell below the Office for Students continuation threshold, and 73 per cent were below the completion threshold. All partnerships serving more than 5,000 students fell below thresholds for continuation, completion, and progression.
Rebecca Robinson, Data Analyst at QAA and author of the report, noted that the situation is more complex than media portrayals suggest. Small-scale and specialist partnerships often deliver positive student outcomes, while rapid, large-scale growth without adequate oversight correlates with poorer results. The emphasis should be on proportionate scrutiny of higher-risk areas rather than blanket approaches that could burden effective arrangements.
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Financial Pressures and Oversight Challenges
Helena Vine, Head of Public Affairs at QAA, pointed to financial pressures as a driver for some providers turning to large-scale franchising to boost income. These same pressures can limit the resources available for robust oversight. The report stresses that franchising itself is not inherently risky; the issue lies in rapid, unmanaged growth that weakens mechanisms for protecting academic standards.
QAA has accompanied the report with resources for its members, including guidance on meeting the Office for Students Condition E10 on subcontracting. This guidance prioritises student needs over financial considerations and outlines requirements for strategic rationales, due diligence, monitoring, and complaint handling. A case study from Buckinghamshire New University illustrates how one institution has reformed its oversight framework to embed risk-based quality assurance across the partnership lifecycle.
The Role of Artificial Intelligence in the State of the Nation Series
Alongside franchising, the QAA State of the Nation series examines artificial intelligence and its implications for UK higher education. Generative AI tools have rapidly influenced teaching, assessment, and research practices across universities and colleges. QAA has developed dedicated resources to help institutions use these technologies positively while safeguarding academic standards and integrity.
The series explores how AI is reshaping learning delivery, student support, and quality assurance processes. Institutions are encouraged to develop strategies for AI literacy among staff and students, focusing on ethical use, transparency, and integration with existing pedagogical approaches. This aligns with broader sector efforts to adapt assessment methods and maintain the value of academic awards in an era of advanced AI capabilities.
Implications for UK Universities and Regulatory Bodies
The findings carry significant implications for universities, colleges, the Office for Students, and policymakers. Lead providers must strengthen governance of franchise partnerships, particularly those experiencing rapid expansion. Delivery partners need support to maintain quality at scale. Regulators may consider more nuanced, risk-based approaches rather than uniform rules.
The report underscores the importance of evidence-based decision-making. By distinguishing between well-managed small partnerships and high-growth arrangements, the sector can protect students while preserving the benefits of franchising, such as expanded access and flexible pathways.
Future Outlook and Recommendations
Looking ahead, the QAA series signals a shift toward more data-driven quality assurance in UK higher education. Continued monitoring of franchising trends, combined with proactive AI integration strategies, will be essential. Institutions are advised to conduct feasibility assessments, invest in oversight capacity, and prioritise student outcomes in all partnership decisions.
The series also highlights opportunities for collaboration between awarding and delivery providers to share best practices. As financial and regulatory environments evolve, sustainable models of franchising and responsible AI adoption can support the sector's resilience and international reputation.
Stakeholder Perspectives on the Report
Sector voices have welcomed the report's balanced analysis. It challenges simplistic narratives and provides actionable insights for those involved in partnership management. QAA members gain access to practical tools that complement the research findings, fostering a culture of continuous improvement.
Broader discussions in the higher education community emphasise the need for policy conditions that support quality without stifling innovation. The report serves as a foundation for ongoing dialogue among universities, regulators, and government bodies.