UK Economic Growth and Franchising
Joel Caws - Technical Director, Select Your Franchise
Encouraging economic news emerged this morning that the economy in the last quarter of 2009 grew by 0.4%, higher than the 0.3% previously estimated. Although this might appear to be small, it comes as a positive boost to many. Experts do maintain however that progress is likely to be slow and some of the growth in the last quarter of 2009 could be attributed to public spending which is normal in the run up to Christmas. It will be interesting to see if the upward trend continues into 2010 when the figures for 1st quarter of 2010 are published.
For the majority of the franchising industry, its still business as usual. The word from the Banks is that they continue to remain positive for lending to franchise start-ups which might give some reason to those thinking of starting their own business to go the franchise route. For further information on the best way to present your franchise start-up to a bank you can read this helpful article from Cathryn Hayes, Head of Franchising at HSBC.
In general, franchises have historically remained strong through recessionary times due to their proven business model and many being built around providing highly desirable or ‘must have’ services which can help make them resistant to recession.
If you are considering franchising as a way to start-up in business then you can start your search by viewing some of the online franchise directories or joining social groups with relevant discussions on franchising.
Franchise Business in the UK
Joel Caws - Technical Director, Select Your Franchise
Many people associate the word ‘franchise’ with big name brands such as McDonalds, Burger King, KFC and such like but few realise that under the surface, the franchise concept has worked its way into most industries.
Franchising in the UK is not a new idea. The concept of giving a right or a license to operate under a specific brand or idea, in the business world at least, goes back well over 100 years. If a business is successful and can effectively package its business formula, what makes it successful, and the way it does business in a form that could be replicated into a network of successful businesses, then it could be ripe for franchising. Its not difficult to see that this is an attractive option for the expansion of an already successful business, since it does not have to take on the administration and overheads of each additional outlet directly. It simply provides the right for a new franchisee to operate under its brand and to run their business in accordance with their proven business formula.
In the UK alone there are literally hundreds of franchise systems with anything from a handful to thousands of franchised outlets each.
Some of the most popular UK franchises are:-
- Fast food franchises – including the obvious!
- Cleaning service franchises - both domestic and commercial
- Automotive franchises – products and repair services
- Property Lettings franchises
- Web Design Services
- Business franchises – Business consultancy with everything from expense reduction, coaching services
- Printing services
- Home and Garden Maintenance Services
- Pet Care franchises
- Legal, Bookeeping, Accountancy Services
- And many more…
You may have used services from one of more of these at some point without even realising it was a franchise outlet you were dealing with.
Due to the extra support that should be provided by the franchisor, choosing a franchise opportunity is often the choice of many who no longer wish to work for an employer but want to start up a business for themselves but with a level of a support – a franchise business can offer this extra supportive element as well as being a proven business system.
British Franchise Association appoints new Vice Chairman
Clive Houlston appointed new Vice Chairman for BFA
Clive Houlston, Managing Director of national franchise network Mr Electric & Aire Serv, has been appointed as Vice Chairman of the British Franchise Association (bfa) Board of Directors.
The bfa, which accredits and promotes ethics in franchising, operates as a membership organisation to represent those franchise companies in the UK that operate in accordance with stringent best practice criteria.
Clive Houlston, who has already held the post of a director of the bfa Board, said: “It is a privilege to have the opportunity to support the current chair and management team during this period of evolution in the BFA and the consequent impact this will have on the franchising industry”.
Mr Houlston’s election as Vice Chairman comes at a particularly important time for the bfa, one year into a series of developments, which will see new levels of representation in the industry and new structures of engagement.
With these many ongoing developments Mr Houlston will play a significant role in their guidance and implementation, ensuring that the bfa remains the voice of franchising in the UK and an essential catalyst to further promote best practice and ethics in the industry.
Mr Houlston is accompanied on the Board by 12 other elected members of the Association, the Director General of the bfa and the Board’s legal advisor.
