Franchise system growth in recession
Looking back to the last recession history shows that franchise systems can grow strongly in recession. This is because as job losses and redundancies kick in many workers decide not to return to the workplace as employees. After many years of dedicated services many hardworking employees that loose their jobs decide to take their destiny into their own hands. Even in shrinking or slowing market conditions franchising offers a more secure way into business for once employed individuals. To see options available vast www.franchises.uk.net.
Finance required
Even in these times of low credit availability the leading UK banks are keen to lend into franchise department. This because the franchise business concept is a very secure market to lend into. In fact according to the British Franchise Association/Nat West Franchise survey 2008 over 90% of franchisees questioned operate profitable businesses http://www.thebfa.org/bookshop.asp. For this reason banks will still lend 50 to 70% of all capital required to start and build your franchise businesses provided you meet the banks lending criteria. Credit ratings are now more important than ever with the banks. Franchisors should be working closely with the leading banks to ensure they can effectively support their potential new recruits in their approach to the banks for funding.
Prepare to grow
Brian Smart, director general of the British Franchise Association (bfa), said: “The 2008 NatWest/bfa survey, published at the start of the year, showed that the number of franchise networks had increased year on year for the last 15 years and in 2007 saw its economic contribution grow at nearly five times that of the national GDP growth (15% economic growth in franchising against a 3.1% GDP growth).”
“With the focus and hype surrounding the economic condition of the UK over more recent months, we felt it was important to hear the voice of actual businesses today; what they think; how their businesses are operating. The result was a continuing story of success and resilience.” For more British Franchise Association information go to http://www.thebfa.org/pressroom/successstories.asp
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