Franchising growth 2009
In-spite of the current economic climate, business format franchising remains robust. The focus of franchising is the documentation and replication of proven and profitable best practise. It is on this system that franchising growth is secured for customer, franchisee and the franchisor who owns the brand and know-how.
Latest developments in the UK economy are encouraging. UK consumer confidence is at its highest level for over a year, according to a poll published by market research group Gfk NOP. The survey revealed that consumer confidence is now just behind last April’s level, and that confidence in the general economy is at its highest point since August 2007. “This is now the third consecutive month that we have seen a rise in the index – suggesting a definite upward trend – and it’s largely driven by the public’s perception that the next twelve months will be better for both our own personal finances and particularly for the economy in general,” said Rachel Joy from Gfk NOP.
In addition the rate of job losses fell steeply from around 47,000 to 7,000 from the start of 2009 to mid-April, according to data compiled by Warwick Business School. According to the business school there were around 24,000 job losses in the four weeks to mid-December, 47,000 in January, 24,000 in March and just 7,000 in the four weeks to April 12th. If the Warwick figures provide an accurate predictor then the labour market could recover sooner than economists forecast. “Although the data are not an indicator of unemployment per se, I think the steep fall in the ‘announced job losses’ gives a pretty good indication that the labour market is recovering somewhat,” said Thomas Prosser, researcher at Warwick university.
This news is good for franchising growth and franchisee traders on the cutting edge of the economy. With job losses slowing and consumer confidance rising proven franchise brands and thier franchisees should benefit moving into the spring of 2009.
Tags: 2009, Franchising growth
Franchise owners vehicle benefits from 2009 budget
Can the budget help your franchise?
If a franchisor or his franchisees have a vehicle which is over 10 years old they could get a trade in of at least £2,000 due to a collaboration between the motor industry and the Government.
Tags: budget, Franchise owners, vehichle
Franchise good news in uncertain times
Even relatively new businesses are succeeding as franchises in the UK market. Trevor Brocklebank, managing director of Home Insted , said: “We only began franchising in the UK and Ireland in 2006 and already have 38 offices across the region. Combined they produced monthly revenues in excess of £pound;1.5m in July 2008. This is more than double the £672k achieved in July 2007. Demand for franchises is strong; ten new owners have joined in 2008, with another four preparing to open for business. In a tight economy, the quality of the business model is critical.”
Dream doors franchise good news
The franchise recruitment manager of the Dream Doors , said: “We at Dream Doors are very optimistic about the company and our future growth. In times of economic uncertainty we are finding that the concept of the kitchen facelift, a cost and time saving solution to a complete kitchen refurbishment, is an attractive proposal to customers who are watching the pennies. With regards to recruitment we are generating quality leads from individuals and couples who are serious about their plans for business.”
FASTSIGNS franchise good news
Garth Allison, managing director of FASTSIGNS UK , said: “Franchisees can rely on the centralised knowledge and expertise of the franchisor. It’s a tried and tested business formula. We do the research and provide information so that franchisees can target the right customers, in the right way, at the right time. One of the great advantages of franchising is sharing best practice and we encourage the exchange of ideas to help our businesses stay ahead of the competition.”
Dent Wizard franchise good news
Steve Calvert, franchise manager of Dent Wizard UK Ltd, said: “The economic situation is challenging but not as dire as the media would have you believe, by recognising the challenging conditions and making changes to our business model we are set to exceed our original budget. In a strong economic cycle, investing in a franchise limits the chance of business failure. In a weak economic cycle the chance of a new start business failing increases, I would therefore suggest that investing in a franchise business in a weak economic cycle actually provides a greater reduction in risk and a higher chance of success than in a booming environment.”
To read more industry news visit www.SelectYourFranchise.com and www.thebfa.org.
Tags: franchise, good news, uncertain times
