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Franchise businesses less hit by downturn?

Published on 21 Aug 2009 under category: legal

Businesses with franchise agreements may be less susceptible to the economic downturn than those without these, an expert has suggested.

Nick Strong, writing for selectyourfranchise.com, stated that many small and medium-sized enterprises "have a fight on their hands" to stay afloat during the recession.

However, he added that those with franchise agreements may be in less danger, which he said is encouraging for those considering joining a company of this kind.

Mr Strong commented: "Perhaps due to franchise business being built on the replication of best practise the sector is being less affected than many. This is good news for all involved in franchise business."

He added that it is now important for leaders of firms to "show innovative leadership".

Last week, realbusiness.co.uk reported that franchise agreements may represent a safer way of starting a new business during the downturn.

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