Entrepreneurs considering starting their own business should weigh up the benefits of buying into a franchise, as 92 per cent of UK franchisees are trading profitably, according to the British Franchise Association (BFA), writes Tom Whitney.
BFA research found the number of franchisees trading profitably has risen by four per cent since 2004. In addition, 61 per cent of franchisees expect their businesses to grow over the coming year.
In the last decade, the turnover of the industry has also grown by 75 per cent from £5.9 billion to £10.3 billion in 2006 and franchising now employees 141,000 more people than it did ten years ago.
Commenting on the benefits of buying into a franchise, a spokesman for the BFA said: “It enables you to capitalise on an established brand. As the franchisee, you buy a licence to use the franchisor’s name, products, services and management-support systems.
“Effectively, you’re buying a ready-made concern, allowing you to get started with the support of a bigger business. It can cost anything from a few thousand pounds for a cleaning business to hundreds of thousands of pounds for a fast-food franchise.”
Independent business adviser, George Ford, from the Airedale Enterprise Agency emphasised the benefits of buying a franchise. “It’s a tried and tested business you are buying and you will receive ongoing advice and support,” he said.
“However, bear in mind you will almost certainly have to part with some hard-earned profit in fees. And before buying, ensure the franchisor is a member of an official body, use an accountant to examine the accounts and seek legal advice,” added Ford.
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