Joel Caws - Technical Director, Select Your Franchise

A few days ago, a news article by the BBC reported that UK unemployment rose to 2.64 million in the quarter to October 2011, its highest level in 17 years. It’s clear that the effects of the recession are still with us for some time yet, with the danger of a double dip recession also snapping at the heels of the UK economy if this and next years quarter see a retraction in growth.

Despite the doom and gloom, many of those who have found themselves unemployed have taken control of their own futures by seeking to start up new franchise businesses. Franchises can give you the benefit of establishing your own business but with the added help of founding it on a proven, franchised business model along with the support and training of the franchisor.

If you are one of those affected by the recent rise in unemployment and facing the difficulties and frustrations of applying for new job vacancies with increasingly greater competition, starting up a franchise business could be your ticket to get you back on track.

If you have come out of a previous position with a redundancy package, then it could be that you decide to invest some of this capital into starting up a new franchise business venture. Though some franchises do require fairly substantial upfront franchise fees, there are others which are also affordable to those with lesser available capital.

Whatever your financial situation or preference, you will almost certainly be able to find a franchise business to suit your needs. There are hundreds of different franchises available in the UK in almost every conceivable industry sector from technology to manual labour, from business consultancy to children’s parties, from office based to home based, from retail store to mobile van sales, the list goes on.

If you want to take control of your future and think a franchise business might be an option for you, you could start by using a franchise matching service which is a quick way to find franchise opportunities that are available in your area and that match your preferences.

Carl Reader, Dennis & Turnbull Ltd

Unemployment hit a 17 year high in the three months to August, the latest statistics have shown.

The Office for National Statistics (ONS) released the figures, which show the unemployment rate was at 8.1 per cent, making a total of 2.57 million unemployed people.

The quarterly increase of 114,000 people has been described as ‘horrific’ by Dr John Philpott, chief economic adviser at the Chartered Institute of Personell and Development (CIPD). He said:

“These labour market figures are truly horrific, with the economy shedding almost 15,000 jobs each week between June and August. The quarterly rise in unemployment is reminiscent of an economy in recession rather than any kind of recovery and confirms that the private sector just isn’t creating enough jobs at present to offset public sector job cuts.

“With 5.6 unemployed people for every job vacancy the labour market is back to where it was in the depths of recession in 2009 and the underlying problem is getting even worse given that 1 in 3 unemployed people have now been without work for over a year.”

The number of 16 to 24 year olds out of work is now at its highest level since 1992, demonstrating how important it is for the Government to do more to support businesses to grow and employ more staff.

Commenting, Katja Hall, CBI Chief Policy Director, said:

“Today’s unemployment numbers make grim reading, especially for our young people. The continuing rise in youth unemployment is a grave concern for us all.

“Businesses are still creating jobs and only continuing private sector growth can help us out of the current tumult. With jobs falling in the public sector, it’s vital the Government does everything it can to support businesses to grow and create jobs, and help young people get into work.”

With such a stark outlook, starting a franchise business could be a way out for many stuck in the unemployment trap. A franchise is basically a way to start up your own business using a proven business model with the support and backing of the franchisor.

Carl Reader is the head of franchising at franchise accountants Dennis & Turnbull, a leading firm of accountants in the franchise industry.

The above information is provided as general advice and no liability is accepted by the author, Dennis & Turnbull or Select Your Franchise in respect of individuals or businesses acting on the above. Independent advice should be sought in all circumstances.

Joel Caws - Technical Director, Select Your Franchise

For those who have found themselves out of work due to redundancy or company closure, it can be a challenge to find your way into a new job especially when opportunities are difficult to come by and rivalry for them is high. It can be discouraging when you reflect on the current high unemployment rate which is a result of the aftermath of the recent recession.

The overall good news is that a franchise opportunity might be a way back into work and making a fresh start for those who have found themselves in the unemployment trap. Here are some the advantages  of a franchise:-

Work to a proven business model

Around 90% of franchise business owners claim that they’re running profitably according to annual bfa/Natwest annual surveys.

Get back into work

A way to get back into work escaping an endless string of visits to job centres, employer interviews, etc.

Work for yourself but not by yourself

A franchise is your own enterprise, though you’ve got the backup and support of the franchise owner.

Low Entry Level Choices

Many low cost franchises could be setup for under £10K – inside the reach of virtually everyone whos got a credit card or can acquire a small amount of finance.

Broad selection

You can find a franchise business option for just about any industry you can think of together with hairdressing, beauty treatments, restuarants, photography, consultancy, design & print, bookkeeping, home maintenance business opportunities, etc.

It is clear that choosing from a range of franchise opportunities could be a fantastic opening if you have found yourself jobless. Remember  that, comparable to any business, running a franchise demands working hard and plenty of dedication. If you have the correct attitude and willpower to succeed, you could find yourself sitting on a successful business which can support you and all your family.  There are several resources on the web to help you start your research for the suitable franchise system for you. The best place to start is often to browse from a franchise directory which can give you some ideas and initial insight into what franchise might appeal to you and that may be within your budget.

Joel Caws - Technical Director, Select Your Franchise

It can be a demoralising position to be in, and yet the unemployment rate is higher than ever thanks to the recession the UK has endured in the last couple of years.  For those who have found themselves out of work because of redundancy or company closures, it can be a difficult road to get back into a job especially when jobs are scarce and competition for them is high.

The good news is that franchise business might well be a route back into work and earning a fresh income if you have got stuck in the unemployment trap. Here are some of the benefits of a franchise business:-

• Work for yourself but not by yourself
  A franchise is your own business, however you have the backup and support of the franchisor.
• Work a proven successful business model
  90% of UK franchisees in any given year report that they are trading profitably according to annual BFA/Natwest franchise surveys.
• Get back into work
  A route back into work without job centre visits, employer interviews, etc.
• Low Entry Level
  Some franchise opportunities can be started up for as little as a couple of thousand pounds – within the reach of pretty much anyone who has a credit card or is able to obtain a small loan.
• Wide choice
  There are franchise business options for pretty much any industry you can think of including hairdressing, beauty treatments, restaurants, print & design, photography, business consultancy services, book keeping, home maintenance, web/internet services, to name just a few!

It’s clear that franchising could represent a great opportunity if you have found yourself out of work. Bear in mind that, as with any business, running a franchise business requires hard work and commitment. With the right attitude and determination to succeed, you could find yourself sitting on a successful business which can support you and your family. If you are still reading to this point then you are most likely interested enough to want to find out more. There are many resources online to help you start your search for the right franchise for you.

Nick Strong, MD - Select Your Franchise

Recent news reports that unemployment rose in the third quarter of 2010 to 2.5 million. This is the first rise in the employment figure for six months and is reportedly due mainly to losses in the public sector.

Although the UK pulled out of the recession early in 2010, its clear that the effects will be felt for some time to come,  representing a challenge of how to find jobs for those willing, but currently out of work.

It was positive to note earlier in the year the supportive policies for small business put forward by the coalition government. Its clear that small business plays a significant role in driving the economy and it might be considered how small business start-ups, such as those setup via the franchising route, could play a role in helping to alleviate the continued rise in unemployment.

Self-employment through franchising could represent a great opportunity for those caught in the current wave of job loss. If you have come away from an employed position with some capital or finance to invest then what better way to use it than to invest into your future.

A franchise offers a way to start up in business without feeling you are completely on your own. Some advantages in choosing a franchise business include a proven business formula and relevant business training for your chosen franchise business. There are literally hundreds of types of franchise opportunities currently available in the UK so you are unlikely to find a business that doesn’t fit you.

To begin your search for the right franchise for you, you can visit our popular 2 minute franchise matching service.

Joel Caws - Technical Director, Select Your Franchise

A recent article by the Guardian outlines how some enterprising graduates are turning to franchising as a route to starting their own business, rather than sit in the lengthening job queues.

Graduate unemployment is reported to be at the highest level in 17 years so its no surprise to see why many have grown tired of chasing that elusive employed position and are beginning to take their futures into their own hands.

The wide range of franchise business options available means there is likely to be something to appeal to everyone. There are reported to be over 800 different franchise concepts currently running in the UK. With this kind of choice, and the fact that you are effectively building up your own business rather than working for someone else, franchising will likely become an ever more attractive option for those fresh, enthusiastic graduates.

The biggest challenge is likely to be the initial franchise fee, which can run from a few thousand for small scale to tens of thousands of pounds for larger franchises. For a graduate, fresh out of university, several thousand pounds might not be that easy to come by.  However, it seems that families have rallied around for some enterprising graduates to give them the head start they need to get established. Of course, finance is often available from banks providing its presented with a good solid business plan.

If more graduates were to realise the potential offered to them through a franchise business, it would be interesting to see how this affects the average age of those running a franchise business which is typically focused around the 40′s in the UK.

Nick Strong, MD - Select Your Franchise

Unemployment fell in the 3 months to July 2010, a recent news article by the BBC reports. However, those out of work and receiving benefit actually rose indicating that finding a job is still a problem for many. There are also concerns that planned government cut backs will further fuel unemployment as public sector jobs are also likely to be hit.

Regardless of whether we as individuals are in or out of employment, an uncertain future is what many of us might have to  deal with for some time yet.

This could prove challenging for those out of work and looking for a job, especially when many companies are sitting tight and not risking expansion of workforce for the time being. For those in employment, rumors of cutbacks and job uncertainty might be all too familiar topics.

The good news is that many franchise businesses are still experiencing profit and growth. There are many reasons why businesses built on the franchise model have been resilient to the affects of the recession over the past few years. Some of these reasons are:-

Franchisor Backing

Although a franchise can be effectively your own business, training and support is usually part of the package to give you the best possible chance of success.

Proven Franchise System

A franchise business is based upon a proven concept which means it has been proven to be profitable if operated correctly.

Resilient Industry Types

Some franchise opportunities are built upon provision of products and services which customers see as essential and so these tend to do well regardless of economic climate.

If unemployment worries are knocking at your door, maybe its time to take your future into your own hands and look into franchising as way to start up your own business.

Nick Strong, MD - Select Your Franchise

With unemployment figures still high from the recession, many people are looking at different ways to get back to work. Starting a franchise business can represent just such a possibility with the added security of a proven business system. However, another result of the recession is that many people either don’t have the savings they once had or the confidence to put any spare capital they do have into a new venture. It can seem more comfortable to sit tight and wait till things get better.

With a good range of low cost franchise opportunities on the market, starting a new franchise business is something that almost anyone can afford. This makes it a viable proposition for anyone who has found themselves out of work but is finding it difficult to find another job as employers still remain wary of increasing their workforce.

Low cost franchises, from as little as a £5,000 investment, make it possible to set up a new business venture with the additional backing of a tried and tested franchise system which helps to lower the potential risk of loss. Successive BFA/Natwest franchise surveys indicate that around 90% of franchisees trade profitably in a given year.

For those that aren’t clued up on exactly what a franchise is and how it works, you might wish to check this helpful posting on what is a franchise.

Joel Caws - Technical Director, Select Your Franchise

With the economy still very slow to recover, many people are asking themselves if now is a good time to start a franchise business or any other business for that matter. Some people are biding their time, holding on to the security of their current employment because other options seem to carry uncertainty. Those who, prior to the recession, might have been considering a job change or branching out on their own, have chosen to sit it out and see what the future brings.

Then there is of course those who have been victims of cutbacks and redundancies; all too familiar news during the course of 2009.

Despite the doom and gloom of the turbulent last few years, franchising has remained a success story. The release of the 2010 Natwest/BFA Annual Franchise Survey confirmed once again that around 90% of franchisees trading in 2009 were trading profitably. This is a statistic that seems to have stood up consistently over the years and hasn’t wavered despite the recession.

The heart of a franchise business is its proven system. By proving a concept and then documenting the processes and formula which achieved their success, a franchisor can provide a system for another to follow and potentially replicate the same success. In addition, many franchise systems are based around highly desirable or ‘must have’ services and products which has helped to protect them against the downturn.

Statistics have shown that now is just as good a time as any for starting a franchise business. Indeed the success rate holds true

Of course no business investment is without risk. However, with careful research and deliberation, good professional advice and guidance from franchise lawyers and financial institutions, and good old fashioned determination and dedication to work hard and succeed, a franchise business could well be your road to a brighter future.

Joel Caws - Technical Director, Select Your Franchise

The recession might be over but the turbulent last couple years has taken its toll leaving many out of work or redundant. With the current unemployment figure being the highest since the mid 90′s, its obvious that there are many looking for work or wondering how best to get their lives back on track.

For those who are currently still out of work and looking for a brighter future, starting a franchise business could well be a way out of the doldrums.  Throughout the recession and into 2010, franchising has remained a robust business model. The latest NatWest/BFA 2010 survey indicates that 89% of franchise businesses were trading profitably in 2009; a staggering statistic considering the many businesses that fell foul of the recession, being forced into looking at redundancies, job cuts, or even closure of their businesses.

With such statistics as those above, starting a franchise business has proved to be a good investment when compared to conventional self-employment where generally 4 out of 5 businesses don’t make it beyond 3 years of trading. Of course, franchise business is not without risk. Where money is invested there is always a degree of risk so making some wise choices can maximise the probability of success.

Reading online guides such as 10 Steps to choosing a franchise business and Franchise business plan examples can help inform and prepare you for making the best decision when it comes to buying a franchise.

Joel Caws - Technical Director, Select Your Franchise

I was reading news earlier on the state of the global stock-markets and the apparent free-fall in prices. Although I’ve read news on one hand that the recession is over (in the UK, the GDP grew by 0.1% in the last quarter of 2009), it appears that other key factors such as the amount of national debt accrued by countries to alleviate the effects of the recession are a cause of concern to investors. In addition, employment rates still appear to be struggling with many still out of work. The road to recovery appears to be slow and uphill!

For those finding themselves caught up in the recession unemployment trap with little prospect of finding employment imminently, there could be other options to consider.  Some may have an idea of their own and look to start up in self-employment. For others, a franchise opportunity could present a good choice.

A franchise business could represent an opportunity to work ‘for yourself’ but not ‘by yourself’.  The advantage of a franchise opportunity is that it should be based on an already tried and tested business system. In short, someone else should have already done the hard work of finding out if the idea works or not. If they were successful, then the core idea and its method of service or product delivery is documented and packaged. This can then be presented as a franchise opportunity for others to replicate the same success. In addition, the franchisor will usually provide additional backup and support to help you run their franchise system effectively.

If you are finding yourself out of work currently, considering a franchise opportunity could be a way to a brighter future. Of course, like any other investment, we highly recommend you do your homework thoroughly and research any franchise opportunity to ensure its validity. The British Franchise Association, the Franchise Sections of the major banks and the existing franchisees of the franchise system themselves are all good reference points when it comes to finding out how well a franchise might perform and maximise your possibility of success.

Joel Caws - Technical Director, Select Your Franchise

More and more positive stories are emerging of late in the business news. The housing market has been regaining some ground and UK unemployment figures falling unexpectedly in the latter part of 2009 as well as numerous positive profit reports from high profile companies.

So what does this mean for the franchise market? The heart of a franchise system is its ability to grow and replicate through the recruitment of new franchisees. Once setup and trading, these new franchise owners increase the overall turnover and thus strength of that franchisors entire network. This provides not just the resources for the franchisor to invest and grow its network further, but the strengthening of the brand and network by numbers can also add security for all its franchisees.

There are two points to note:-

• Job Security
  A result of the downturn has meant the job security of many has been threatened. Many have found themselves redundant and out of work or at the least concerned about the possibility. A franchise opportunity can give the security of  a brand and proven system while allowing you the freedom to build up a business for yourself.
• Rising Confidence
  If the positive news continues, confidence may soon return and more and more people will begin again to look at changing their jobs or returning to work. Although there is still an air of caution in the financial and economic markets… the banks maintain that finance is available where there can see it as a good investment. Franchising provides the banks with more confidence than a regular self-employed start up option due to its tried and tested system.

As with any investment, its prudent to do your research properly and not to jump without first scouting out your landing place. Take your time and talk to the franchisor to properly understand their setup and support networks. Talk to their franchisees to get inside information on how the franchise performs on the ground. Consult your bank and a specialist franchise consultant to ensure you are well informed on any legal and financial considerations. Finally, make your choice and dedicate yourself to following the tried and tested franchise system and making it work for you.

These are undeniably tough times for the UK’s small and medium-sized enterprises (SMEs). 

Franchise blog Nick Strong

Franchise business makes up a significant slice of the SME sector in the UK with a financial turnover of £13 billion. 

Also the franchise business sector is a big employer providing employment to over 370,000 people.  Franchise business therefore supports over 1% of the UK’s total workforce of about 28 million people.

With the recession continuing, many of the country’s more than four million SMEs continue to have a fight on their hands to stay in business.   Perhaps due to franchise business being built on the replication of best practise the sector is being less effected that many.  This is good news for all involved in franchise business and encouraging for anyone considering entering it.

While SMEs do not generally make the business headlines, they employ 13.5 million people – 59% of the UK’s total private sector workforce – according to the most recent figures from the Department for Business, Enterprise and Regulatory Reform.

Now more than ever it is a time for franchisors to show innovative leadership and franchisees to enthusiastically follow the franchise brand’s proven system that they operate.  All franchise owners should be keeping a close eye on their profit and loss and focusing all efforts on key income driving activity.   This action will help protect and grow SME franchise business and the thousands of people who make their living in the sector.

Nick Strong - Managing Director, Select Your Franchise

Redundancy victims starting their own companies to escape unemployment are more likely to succeed if they choose successful franchises.

Investing your redundancy cheque in a new business makes much more sense if it is a quality brand with a proven track record, advise experts at Select Your Franchise.

“Most people made redundant will have worked hard and effectively for their employers,” said Select Your Franchise Managing Director Nick Strong.

“So it is an undeserved shock when an effective worker loses his or her job in a recession. People understandably feel very let down.”

“It is natural at such times to explore ways of taking your future into your own hands. Exiting unemployment into self employment may be a valid option for many people.”

But there are risks involved with running your own business – and one of the best ways of minimising them is by investing in a successful franchise brand.

Successive British Franchise Association National Franchise Surveys reveal that at least 90 per cent of franchise owners run profitable businesses.

This is achieved by franchise owners following their franchise brand’s proven system.

Franchise brand owners also provide ongoing training and field support for their local franchise owners.

So how do you know if self employment via franchising is right for you? Self examination in the following five ways is a good start:

1.  Are you self-motivated or do you look for motivation from others? Effective self-employed franchise owners are enthusiastic followers of the proven system they adopt and they are good self starters.

2.  Do you want to follow a proven system or develop your own ideas? Franchised businesses are all about replicating proven systems and brands.

3.  Do you have the backing of your family? There are ups and downs in running your own business so you need your family on board from day one.

4.  Do you have money or equity in your property that you can use to secure funds for a franchise business start up? All businesses require start up and running capital. The amount required is determined by the business system you want to develop.

5.  Look at your strengths. Make a list of what you are good at doing. Do you enjoy working with your hands or behind a desk? Are you a people person? How are you with figures?  Research franchise options that fit your strengths and available business development capital by visiting www.SelectYourFranchise.com.

Mr Strong said: “Clearly self-employment is not right for everyone. There is risk in self employment – but there is plenty of risk in employment too as many have experienced.”

“It’s a matter of choice. Do you want to be master of your own destiny or put your future in the hands of someone else?” he added.

A helpful resource for researching franchise opportunities can be found in the Select Your Franchise Two minute franchise matching service.

According to the BBC, UK unemployment rose by a record 281,000 to 2.38 million, in the three months to May, the Office for National Statistics has said. The jobless rate increased to 7.6%, the highest in more than 10 years.

The number of people claiming unemployment benefit increased by 23,800 in June to 1.56 million, which was less than analysts had forecast. Businesses have been cutting jobs as they seek to reduce costs in the wake of the global downturn – http://news.bbc.co.uk/1/hi/business/8151017.stm

Franchise business options for unemployed

Many people that have lost their jobs in this recession are now considering self employment.  However, there is risk in this so choosing a proven route forward is vital.

For many people self employment via franchise business is the obvious choice, so why is this?

Franchise businesses is built on a proven systems that can be replicated.  You may decide to open a ‘Joe’s burger joint’ for example of you may decide to open a ‘McDonalds Franchise outlet’.

Clearly operating a proven system and a recognised brand gives the new business person an advantage.  A franchise gives the new business person know-how and business development support from day one.

How can I find out more about franchise business options?

Visit www.SelectYourFranchise.com where you can research, without obligation, over 100 UK franchise business opportunities.  You can also read helpful articles supplied by independent specialists.

What does it cost to start my own franchise business?

Clearly there is a cost to starting any business.  A franchise fee will reflect the cost of equipping, training and launching you into business.  Fees therefore vary according to the cost of getting you started. 

Banks are very supportive of franchise businesses as over 90% of franchise owners run profitable businesses in the UK.

USbank Citigroup has announced plans for up to 75,000 job cuts worldwide, up from a previously announced total of 23,000. Citigroup said in a statement that the cuts represented a reduction of about 20% of its staff, leaving the bank with 300,000 jobs worldwide. The cuts will come from redundancies, the sale of units and natural wastage, the bank said – http://news.bbc.co.uk/1/hi/business/7733575.stm.

The above statement is clearly not good news for those affected by the job losses announced. However, many people who have dreamed of going into business have often not done so because of the allure of job security. The removal of this security can be just the boost needed for people to take the step into self empowered franchise business building.

In response to this franchise brands are thinking creatively how to recruit and support their franchisees during the current downturn. For example news out fo America via the Wall Street Journal comments that Dominos Pizza Inc is considering making loans available to its franchisees. This will allow franchisees to gain access to capital and not suffer from the limiting affects of the credit crunch in the US economy.

“Domino’s Pizza Inc. discussed how its borrowing capacity has been hampered by Lehman Brothers Holdings Inc.’s bankruptcy filing.  With the credit crunch weighing heavily on the restaurant industry, Domino’s said it will save its cash and potentially make loans directly to its franchisees.” – http://www.nuwireinvestor.com/articles/dominos-pizza-offers-a-new-strategy-to-help-franchisees-52219.aspx

Interestingly Yum! brands which owns Pizza Hut, KFC and other brands is looking to its franchise ownership programme to right its decline in sales performance.

According to Reuters, “Yum! Brands will eliminate hundreds of corporate jobs as part of an ambitious re-franchising program. The company, which posted a 16% drop in U.S. operating profit for the third quarter, plans to cut its ownership of Pizza Hut and KFC units to 10%” – http://www.nrn.com/breakingNews.aspx?id=360124&menu_id=1368

So why do businesses focus on franchising?

Franchisees can often be highly motivated.  Owning a franchise outlet means that you personally invest into the franchise brand and build your outlet as your own business in the system of the brand.  Because of this fact most franchisees work long hours enthusiastically and are very focused on customer care.  This in turn yields results in terms of happy customers, recommendations and strong repeat business.  This drives positive and growing revenues for franchisees and franchisor alike.

Additionally franchisee ownership removes the capital burden from the owner company.  The alleviation of capital cost via franchise ownership helps the owner company by lowering its operating costs and need to access cash for working capital and growth.  The risk is spread and the benefits of operating the brand is shared via good franchising.