Can Franchises Save City From Recession?

Norwich Evening News:

They range from small family firms to global brands, employ thousands and account for a quarter of all sales within the city walls.

And franchises could even help counter any possible recession in Norwich, according to one city expert.

So what is a franchise? A franchise is simply a company which sells on its tried and tested business model and brand name to others to operate in other areas.

Some of the best-known examples are food chains, such as sandwich bar Subway, and Domino’s Pizza, with different stores or small groups of stores independently owned, but managed under standards set by the chain.

Profits made are kept by the store owner, or franchisee, but a percentage is paid to the franchisor to cover costs and enable growth.

As well as restaurant chains, a broad range of services operate under the franchise model, including petrol stations, car rental firms, hotels and services such as drain clearers.

The main benefits are faster expansion, which is not dependent solely on economic growth of the parent firm. And for those taking on a franchise, it offers greater security than starting up a new company, according to Roy Seaman, founder of Norwich-based Franchise Development Services, which has helped establish 10,000 franchises from 21 offices across the world since 1981.

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