Partner Article

Franchising profits defy downturn

The franchise industry has been largely unaffected by the recession, new research suggests.

The industry as a whole contributed £11.4bn to the UK economy last year according to statistics from NatWest and the British Franchise Association (bfa). The number of franchises trading profitably has remained at 90% which marks no change in the last 12 months.

Brian Smart, director general of the bfa, said: “There is little indication so far of the recession having a severe impact on the franchise industry. It seems franchised businesses are in a much stronger position as they have the additional protection of a proven business model and brand and, are a lower risk option for customers.”

The research found that 82% if franchisors expect their businesses to improve or remain the same during the next year, while only 18% are anticipating trading conditions to worsen.

Smart added: “It’s clear from this survey that the franchise sector is proving resilient to the economic downturn by investing heavily in activities to drive business forward and ensure future success. It is a mark of the enthusiasm and commitment of franchisors and franchisees that they continue to drive new business and retain it with such vigour.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .