FRANCHISE ADVICE
A marked upturn I’ve just been looking at a news item posted by a company that runs booking systems for franchise operations and they are saying that there has been a marked upturn in the last month of bookings and of confidence. This has been mirrored by comments made by franchisors – often those with a customer base of parents and children and who, up until now, have not been able to trade – but they can see a way forward. Respected economists at HSBC point out that by spring people will be sitting on £200billion more of bank deposits than they were a year ago. The budget has extended further support to households and the vaccination programme is moving with pace which indicates factors are in place for an economic recovery. The stamp duty holiday has been extended, the VAT rate to hospitality and leisure services extended at a reduced rate until April 2022 and the Chancellor is directing tax incentives to help foster a strong economic rebound. The Office for Budget Responsibility (OBR)
expects the economy to expand by around 4 per cent this year accelerating to 7.5 per cent in 2022 and is not alone in saying that there could be a sense of euphoria leading to a surge in spending once the pandemic is passed. I’ve seen it referred to in various newspapers as "a return to the roaring 20s"! The OBR also suggests that a further
half a million jobs may be lost by the end of this year, but that will represent a peak unemployment rate of 6.5 per cent rather than the 7.5 per cent assumed in its forecast of November last year. All of these pointers are positive,
which is why we say, with a degree of confidence, that if you're looking to invest in a franchise now is the time to begin your search in earnest. As part of your research, I strongly
recommend you ask franchisors to give you a very clear picture of earnings potential based on pre- and post-Covid trading – from their real experience rather than from hypothetical forecasting.
BUSINESSFRANCHISE.COM
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