Member Article

Franchising – a safer route into self employment

Self employment is in fashion. Figures show that one in seven workers are now self employed. If it’s a choice that you’re considering right now, you might be interested to know that franchising is generally considered to offer a safer route to becoming your own boss.

Statistics compiled by franchise industry body, the bfa (British Franchise Association) confirm this:

• The failure rate for franchises in 2013 was just 2.3%. The same figure for independent business start-ups was 10%
• There’s also clear evidence that franchisees move into profit more quickly. In 2013, 80% of franchises established within the last two years were in profit.
• Overall, in 2013, 92% of franchises were in profit. There’s an equally impressive figure going back to 1992 showing that every year since then, even through the recession, around 90% of franchisees have reported profitability.

Franchising is big business. In 2011, it contributed £13.4 billion to GDP, growing by 4%. It also employs nearly 600,000 people full-time. Around two-thirds of those that become franchisees were previously employed by another company, i.e. had not run their own business beforehand.

Tejwant Karir decided to become his own boss in 2013, having previously worked for the Inland Revenue. After doing careful research he decided to buy Driver Hire’s office in Slough. “Running a franchise appealed to me because I wanted to benefit more directly from the effort I put in,” says Tej. “For a start you’re buying into a tried and tested business model. Another key benefit of franchising is the ongoing support you get both from the franchisor and fellow franchisees. You’re never alone. It’s certainly helped me to get away to a flying start.”

This was posted in Bdaily's Members' News section by Driver Hire .