BRITISH FRANCHISE ASSOCIATION NEWS
The UK’s voluntary self-regulating governing body for franchising
rebalancing the economy. While other sectors have struggled, the franchising industry has punched well above its weight over the past year in key areas such as growth, job creation and export.
“The franchising model offers the benefit of appearing to be a larger business, standardised products and quality expectation – advantages all heightened in a downturn”
Franchising industry thrives in downturn
The latest survey by NatWest and the British Franchise Association (bfa) shows one sector is more than playing its part in
While UK GDP grew by 0.7 per cent in 2011, the franchise industry increased economic contribution by 8 per cent as turnover rose to £13.4 billion. While other sectors experienced contraction over the year, nine out of 10 franchise businesses posted a profit – reducing loss-makers to pre-recession levels Further growth is likely as 76 per cent of those surveyed expect business to improve in the coming months (compared to only 44 per cent of all SMEs). Most (80 per cent) believe that franchising gives them a competitive advantage over other small businesses given that they have the support of a larger brand.
In contrast to a UK-wide rise in unemployment of 180,000 in 2011, a total of 73,000 jobs were created in the franchise industry. This comes as the number of franchising systems operating right across the UK increased to 929, with 40,100 franchise business units employing 594,000 staff. The number of larger franchise units employing more than 11 staff increased by 30 per cent in the past year according to the survey.
Graeme Jones, head of franchising at
NatWest and RBS, said: “The franchising model offers the benefit of appearing to be a larger business, standardised products and quality expectation – advantages all heightened in a downturn. Expectations for growth are high in the sector and we’ve invested in the largest specialist team of managers of any bank to ensure it happens.” Brian Smart, director general of the bfa, added: “The last few years have put crippling pressure on businesses, creating some of the toughest trading conditions that many have ever seen. However, yet again we see the franchise sector proving its value by generating new sustainable business start-ups, jobs and revenue for an economy that desperately needs them. For those who are considering franchising this is obviously an encouraging sign, but we also stress the importance of thorough research and consideration before making any commitments.”
World first for UK franchisees
UK business is setting a new standard for the rest of the franchising world with the British Franchise Association (bfa) opening its doors to franchisees as voting members for the first time in its history. The newly developed franchisee membership programme is the first of its kind anywhere in the world and completes the bfa’s representation of the three core elements of the industry. Already the UK accreditation body for franchisors and professional advisers to the sector, the bfa and its latest engagement will see a new level of business collaboration amongst thousands of small- and medium-sized enterprises in the UK.
In addition to the opportunity for
election to the board of the bfa, franchisees joining the scheme can access new interactive training, advice services, cost-saving benefits and a variety of resources. Membership is being rolled out in a stepped process and is limited to franchisees of bfa member companies that have already been accredited as ethical and credible franchise networks. Brian Smart, director general of the bfa, said: “By engaging franchisees directly we are able to further strengthen the ethics and standards of the industry, which has always been at the heart of our work. This has been echoed by the support and enthusiasm of our franchisor and professional adviser members, who have fully embraced this collaborative process, including the recent appointment of
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three franchisees to our board of directors.” Sir Bernard Ingham, president of the bfa, added: “This pioneering change, which has been in consultation and development for several years, has been close to my heart since its conception. This has required existing members to open up the industry’s representation to franchisees, which entails a significant level of trust in both the bfa and franchisees. I have never been prouder of this industry than I am now, seeing such a positive, inclusive and progressive development come to fruition.” Further information about the British Franchise Association and the new franchisee membership programme can be found at
www.thebfa.org
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