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Franchise disputes could rise with growth of sector

Published on 28 Apr 2010 under category: legal

The franchise industry managed to increase its total turnover by £400 million on last year, despite the tough economic climate.

Its growth may signal more franchise disputes in the future.

NatWest's bfa Franchise Survey found that the average turnover had increased by almost three per cent, with most owners making around £335,000 in 2009.

The popularity of the business model grew as well, with the numbers of UK franchise systems growing to 842 from 835.

On the findings, Graeme Jones, head of NatWest's franchise team, commented: "We look after more franchises than any other bank and have seen far more optimism from our customers about the coming year in comparison to twelve months ago when confidence levels were low."

According to the survey, more than nine out of ten (94 per cent) of franchisors are positive about future business prospects.

Brian Smart, the director-general of the bfa, attributed the success of the industry to its particular advantages of "wider business support, training and economies of scale".

If you require advice on Franchise Disputes please call us on +44 (0)20 7831 0101 and ask for Andrew Pena.