Business franchises remain buoyant
By: Elizabeth Smythe
02 February 2011
Many people are attracted to franchising as it allows you to be your own boss. Recently released figures show that 2011 is the year to start your own business and consider investing in the support that a franchise offers.
Franchising is one of the few areas to remain buoyant throughout the recession. The 2010 NatWest and British Franchise Association (BFA) survey showed that the UK franchise industry continued to grow, contributing £11.8bn to the economy, an increase of £400m on last year.
Nine out of ten franchises traded profitably. Although lack of capital was seen as the biggest barrier, the survey shows that estimated start up costs have actually declined.
Brian Smart, director general of the BFA said: "Franchised businesses have weathered the recessional storm extremely well, which we should not be surprised about if we look at how franchising has proved itself over the years. This year has highlighted this particularly well with success rates of franchise businesses not dropping even in the recent recessional environment."
With job cuts a sadly common occurrence, it is predicted that many displaced individuals will venture into franchising and with good reason. Tom Endean, the BFA's marketing manager explains: Time and time again, franchising has greatly out-performed other start-up businesses. Its formula of locally owned and run enterprises, driven by a small business owner, with branding, economies of scale and support from the wider network, gives the consumer the best of both worlds and the business a far better chance of success."
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