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Bank profits 'could help franchises'

Published on 5 Aug 2009 under category: legal

Those taking out franchise agreements could benefit from the profits made by UK banks, it has been claimed.

Nick Strong, writing in the Franchise Finance section of selectyourfranchise.com, stated recent figures announced by the likes of Barclays could be a boost to firms of this kind.

He said the key benefit of this is that there may now be more stability and trading success.

Mr Strong explains that a study by NatWest and the British Franchise Association has revealed that 90 per cent of those with franchise agreements run a profitable business, meaning that banks can count of successful loan repayments.

However, he adds that lenders enjoying profits does not mean that they will hand money out to anyone, with a key theme of this year being "far more scrutiny" in this sector.

Recently, Annelie Slater, a London House franchise owner, told thefranchisemagazine.net that women could benefit from franchise agreements as they could present a way of breaking into the business world.