One word: franchises. “While many industries have been hit by the recession, sectors within the franchise industry are demonstrating significant growth – from second-hand stores and car repairs to security companies and fast food,” says David Tuck of The British Franchise Exhibition. “Banks have confirmed their ongoing – and in some cases increased – commitment to lending to these prospective franchisees, as they offer an approved business model.” According to the annual NatWest/BFA franchise survey, a stonking 91 per cent of franchisees claim their business traded profitably last year. “The failure rate among franchisees is much lower than for stand-alone start-ups,” comments Cathryn Hayes, who has been head of franchising at HSBC since 1994. “This is predominantly due to the support that the franchisee receives from its franchisor and other franchisees in the network, who can help newcomers avoid the pitfalls associated with starting a business. The risk of lending to a franchisee is lower than to a conventional SME. Applications for finance will therefore be looked at more favourably.” Want to know more about franchising? Then get yourself down to the British & International Franchise Exhibition at Olympia London on 20 and 21 March. Related articles:Franchise firm booms during downturn Picture source
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.