Resales Focus
Grand legacies
Statistics show the popularity of resales, and with good reason says Derrick Simpson
T
oday, we are regularly bombarded by a range of statistics and surveys presented as hard fact. Many reports of this type tend to apply some form
of bias to the fi ndings being published to make a point in favour of whatever argument or fact is being portrayed. Whether being about economic growth, a ‘feel-good’ factor or an environmental issue, all tend to slant the results to deliver a message. Occasionally, one can see trends
reported that have been based on a whole series of surveys over a number of years; evidence that has been consistently monitored by means of similar data year after year. It is this kind of longer-term view that can provide a more balanced perspective. Over the past 29 years, NatWest has sponsored the bfa survey of UK franchising and the information contained therein is a valuable pointer to the health of this important business sector. The growth in the UK franchise industry and its levels of success are clear to see, with sustained growth in franchising continuing whilst the total UK economy has slumped.
Standing at nearly £14billion, the
current turnover of the 930 franchised networks in UK franchise sector is around 1 per cent of the UK GDP. Over 560,000 people are employed in nearly 40,000 franchised units. What really stands out for me, though, is that, even during the recessionary period, the vast majority of franchisees in the UK are profi table. A staggering 92 per cent of UK franchisees report themselves as being in profi t which, when compared to the results for typical stand-alone non-franchised businesses, is a massive recommendation for joining this thriving business sector.
64 |
Businessfranchise.com | April 2014
A previous NatWest/bfa survey showed that seven out of 10 people who joined the UK franchise sector did so through the purchase of an existing franchised business – a franchise resale. Seven out of 10 people made the decision to buy a resale rather than start with a new franchise in a greenfi eld location. They understood the strength of a franchise resale purchase in comparison to a new start-up. This is encouraging because, currently, 53 per cent of UK franchisors expect to be offering franchise resales during the year ahead and the indication is that 10 per cent of the UK franchise sector is going to become available for sale to new franchisees. The results over a number of years show the steady growth in the supply of franchise resales. The franchise sector is well established and many franchisees have owned their businesses for years. This longevity is now leading to many franchisees considering their futures and possible retirement and so are planning their exits from their particular networks. They will be speaking to their franchisors and Franchise Resales about the processes involved and starting to prepare for their fi nal sale. A franchise resale business has a
ready-made customer base, cashfl ow from day one, existing brand presence in the local marketplace, an established supplier network in place, trained staff already in place (if required) and evidence of what can and has been achieved. All is in place to take over the business and develop it further.
The franchisor is there to provide training and support, assist with the launch and provide hands-on advice – just as with a new-start franchise. With a franchise resale, however, the business is already there and waiting for you to inject your energy and drive to take it on and unleash its future potential.
So how do you, as a potential
purchaser, fi nd out if resales are available in the area in which you live or can to travel easily? The simple answer is to speak to the franchisor of the particular brand and ask. Some franchisors do not openly publicise the resales that are available within their system so, unless you ask, they may not tell you. Many franchise resales, however, are openly advertised, mostly on the internet, with the websites
www.franchiseinfo.
co.uk and
www.franchiseresales.co.uk being pre-eminent.
Many people who enter franchising
are not initially looking for a specifi c brand but are seeking an opportunity that utilises their skill set, they will enjoy running and will generate the income they desire/require. Few are totally fi xed on a specifi c brand, maybe not even a specifi c sector and in my experience most prospective purchasers will move towards an opportunity that fi ts the majority of their requirements regardless of brand or market sector. The NatWest/bfa survey shows that the main two reasons that purchasers of franchise resales selected the particular one they did was fi rstly because of the successful current performance of the business they were investigating and the second reason was that it had growth potential. It is logical, therefore, to include franchise resales in your research into franchising and get your future business off to a fl ying start. n
DERRICK SIMPSON
For more information on franchise resales contact Derrick at
derricks@franchiseresales.co.uk or call 01562 881 023
Sponsored by:
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146