Franchise leaders meet MPs to discuss growth
By: Chris Taylor
03 November 2011
Members of the British Franchise Association (BFA) have met with MPs to discuss how UK franchise opportunities can help combat the economic downturn.
Led by Gosport MP Caroline Dinage, parliamentarians heard that franchising is an important industry that encompasses every size of business - from home-run operations to large retail outlets and international hotel chains.
"Its stability and success rate mean that it can provide an ideal route for many to start their own business and take control of their future," said Brian Smart, director general of the BFA.
Confirming the director general's statement, a Franchise Magazine report cites the BFA's own Franchise Survey. It revealed that franchises are one of the most effective business models around, as over 90 per cent of franchise owners report their businesses to be profitable.
With just four per cent of franchises failing per year, franchising is also six - 10 times more likely to succeed than a conventional start up.
"The success rates are no surprise," continued Smart. "Franchising operates through a locally-owned and run proven business concept, driven by enterprising individuals, with training, branding, economies of scale and support from the wider network.
"This removes or reduces many of the hurdles that floor most SMEs (small and medium businesses)."
According to Startups.co.uk, Carole Dinage MP seemed suitably impressed by Smart's claims, saying that the meeting will encourage MPs to adopt a franchise business model in their own constituencies.
The BFA hopes to keep an open dialogue with parliament going into the future, so that it can readily support the exchange of ideas and business education.
Top of page