250,000 considering investing in a franchise
By: Deborah Bates
08 February 2011
Some 250,000 people across Britain are actively considering investing in a franchise, according to results of a recent report.
The study, named 'Insight: An industry review of Franchising in the UK 2010', was developed by business students at the University of East Anglia's Norwich Business school. The students monitored, collated and analysed historic trends within the UK's franchising sector, in addition to capturing views of franchise owners, franchisers and specialist franchising finance providers.
According to The Franchise Magazine, the report suggested that a quarter of a million have been considering the UK's myriad of business franchise opportunities, demonstrated by the average 40 enquires received by each British franchisor each month.
It also found that the majority of initial investments made came from the personal savings of the franchise owner, and that most people who do bite the bullet and buy into a franchise do so because they have dreams of starting their own business.
Investors also tend to choose franchises that play to their previous experience and knowledge.
Most of those that had already invested met and exceeded their targets for turnover, and many franchisors' claimed they were intending to expand their businesses via franchised outlets, as opposed to company-owned outlets.
"The franchise industry's good health is evident," claimed Roy Seaman, a franchising expert. "The major banks with franchise departments are actively loaning money to the franchise sector."
"People who have been made redundant or have simply lost their job are exploring franchising as a proven business format for their skills, energies and ambitions."
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