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Franchise agreements 'can allow firms to survive the downturn'

Published on 23 Jun 2009 under category: legal

Franchise agreements could provide businesses with a way to avoid the effects of the economic downturn, it has been claimed.

Linda Whitney, writing for ThisIsMoney.co.uk, asserts that those in the fast food sector could be benefiting from people's abandoning of restaurants in favour of cheaper options.

She claims that companies which have signed franchise agreements dominate the high street, so new firms could gain from existing brand recognition.

Pizza Hut's Sanjiv Razdan tells the news provider that experience of this sector is not a requirement for success.

"You need vision and drive to take the business to a higher level … You need to keep a sharp eye on the finances, customer response and timings," he asserts.

The news provider even suggests that franchise agreements can operate from a residential location initially.

Earlier this month, thefranchisemagazine.net reported that Lee and Gill Fish are intending to open nine new outlets of franchise O'Briens Cafes.