UK Franchise Industry expansion reaches record levels
Joel Caws - Technical Director, Select Your Franchise
According to the 2011 British Franchise Association(bfa)/Natwest franchise survey (which is available free to all bfa members), the number of UK franchised units in the UK reached record levels in 2010 at 38,600 units. This is the biggest yearly increase in the number of franchise units since 2007, just prior to the recession, which is a great sign that positive optimism is returning.
With unemployment still remaining a problem, more people appear to be looking at starting up their own business and these figures indicate that many of them may well be realising the benefits of choosing a franchise business.
Despite the recession, the franchise survey also shows that even in 2008-09, the number of franchise units still grew, indicating a measurable confidence in starting up a new franchise business regardless of the economic climate.
The accelerated growth over 2010 brings an even more positive outlook to the franchise industry.
For those not familiar with franchising, a franchise is quite simply a proven, replicable business model. This is to say that typically, you can run a franchise as your own business venture but with the advantages that come with the right to make use of the franchisor’s established trademark, branding and proven trading model.
Choosing a franchise as a route to self-employment can give advantages over starting a brand new business idea from scratch. The franchise survey shows the historical, impressive trend of 9 out of 10 franchisees running profitable businesses, to have continued during 2010.
It’s clear that the future remains bright for franchising… could a franchise business be a part of your future?
Tags: British Franchise Association, franchise business, franchise development, franchise growth, joel caws, Nat West
Franchise News: Franchisee of the Year Awards 2011
Cathryn Hayes - HSBC Head of Franchising
Entries for the British Franchise Association (bfa) HSBC Franchisee of the Year Awards 2011 are now being accepted, so why not nominate your most enterprising franchisees? The awards, supported by Express Newspapers, highlight the outstanding efforts and achievements of the franchisees in the UK who ‘set the standard’ for the industry.
The awards, celebrating their 22nd year, offer franchisees the opportunity to showcase their inspirational stories of success. From turning pioneering business ideas into reality, developing new community initiatives, or achieving growth despite the challenges of a difficult economic climate, the Awards recognise the individuals who have demonstrated best practice in franchising.
This year the awards will include a regional winner from each of five regions: London and the South East, the South West, the Midlands, the North and Scotland. Each regional winner will receive £500, courtesy of HSBC.
Franchisors can enter up to five of their franchisees for the awards, one nomination per region. Three finalists will then be chosen from each region, with these going forward for the national awards.
The Gold Winner of the Award will receive £5,000 from HSBC, together with a commemorative trophy and the title bfa & HSBC Franchisee of the Year.
The Silver and Bronze Winners will receive £3,000 and £2,000 respectively.
The deadline for entries is 20 June 2011, and finalists will be invited for interview with the judging panel on either 27th or 28th July. Winners will be announced at a gala dinner, being held at the NEC in Birmingham on 29 September 2011, prior to the National Franchise Exhibition on 30 September and 1 October.
Further information and entry forms can be found in the Members’ Area of the bfa website.
Posting from the monthly HSBC Connections newsletter. For more information or to get on the mailing list for the newsletter please email franchiseunit@hsbc.com
Franchise Business can offer a competitive advantage
Joel Caws - Technical Director, Select Your Franchise
According to the recently released 2011 Franchise Survey, commissioned by Natwest Bank and the British Franchise Association:-
“4 in 5 franchisees reckon that being part of a franchise has given them a competitive advantage in the last year when compared with similar businesses that are not franchised. “
This is great news for any one considering starting up a franchise business, and food for thought for anyone who is choosing to start up their own ‘stand-alone’ business venture.
Being a part of a franchise network may well give an advantage over a stand alone business. Here are a number of things to consider:-
- Starting up a franchise business can give reassurance to potential customers that you are not just trading alone but have the backup of a larger network behind you.
- Some franchises have become recognisable brands which can help sway a customer in your direction as they may prefer to buy from a brand they recognise and are familiar with.
- Some franchises run local or national advertising campaigns which benefit, and can drive business to, the entire franchise network.
It’s easy to see why many people choose to start a franchise business, as the advantages above are much harder to realise when starting your own business from scratch.
Of course no business venture is without risk and so researching and business planning should form an essential part of your preparation when thinking about starting up a business, whether it be a franchise business or a business of your own making. It’s often wise to consult with your bank or a financial advisor to ensure you have all the bases covered in terms of your investment, and also a legal expert to advise you on any franchise contracts or agreements you might need to sign.
