stoppress
sTAT OF THe MONTH
NEWS IN BRIEF
46
%
1
A year after Lehman Brother’s
collapse, the Institute for Public
Policy Research (IPPR) fears that the
lessons have not been learned.
IPPR Senior Economist Tony
Percentage of entrepreneurs who
Dolphin said: “Alarm bells should
believe that selling their business will
be ringing with the early signs of
take less than one year – the reality
a ‘back to business’ attitude in the
is that it actually takes up to two,
City (as illustrated by the return of
according to a new report.
big bonuses). Unless policymakers
take action to create the blueprint
for a more stable and sustainable
model of capitalism, and one that
delivers better outcomes for all,
not just a small elite, there is a real
danger of another economic crisis
in the future.”
2
The British Chambers of
Commerce (BCC) has
Franchising for regeneration?
published its September 2009
Economic Forecast and is more
upbeat about economic growth in
The franchise model should be used as period in time – if we want long term
2010, reducing its forecast for peak
a cornerstone of governmental policy economic regeneration then we need
unemployment.
on economic regeneration, according to get people working for themselves,
Recognition Express franchisor Nigel running their own local businesses and
However, Chief Economist at
Toplis. thereafter employing local people – all
the BCC Chief Economist David
of which combines to generate wealth
Kern warned: “The upturn in the
Nigel believes most franchisors in the local territory.
economy has probably already
are unlikely to recruit people from
started and we could see a
economically deprived areas, and “A franchisor who invests their licence
relatively strong bounce-back
people living in these areas are also fee is doing two things. Firstly, it is
in the next few quarters. But
unlikely to apply for a franchise – not helping develop local enterprise and
sustaining the recovery will be
because there is no skill base but secondly, it is expanding their brand
very challenging and the risks of a
because there is little or no personal into areas they previously may not
relapse are high.”
fi nance available. have gone to.
The proposition presented by Nigel “Similarly the banks have little risk –
is that franchisors should join they are backing a tried-and-trusted
with the banks and the Regional formula and in essence the franchisor
Development Authorities (RDA) to is investing 30 to 40 per cent of the
create a serviceable sound fi nancial overall cost by not
package – with the franchisor waiving taking their fee.
their licence fee, the banks providing
contributory funding and the RDA “The RDA is
supplying a business support package bringing three
parties together and
Nigel stated: “It is fi ne for the will end up with
Read the full
interview with
Government to invest in capital new business, new
Nigel Toplis on
projects but generally the effect on jobs and hopefully
page 13.
jobs and wealth creation is limited to a new wealth.”
Franchisor News | 9
FN_p8-10 NEWS_Aut�Wint09.indd 3 21/09/2009 18:37
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