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Franchisors 'coping with the recession'

Published on 29 May 2009 under category: legal

There is little evidence that the franchising industry is being severely affected by the recession, according to new research.

Natwest and the British Franchise Association's (BFA's) latest study shows that the sector has remained resilient, highlighting that the number of UK franchises trading profitably in 2008 stood at 90 per cent, unchanged from 2007.

Brian Smart, director general of the BFA, said: "There is no indication, yet, of the recession having a severe impact on the franchise industry in terms of profitability.

"It seems franchised businesses are in a much stronger position, as they have the additional protection of a proven business model and brand and are a lower-risk option for customers."

The research also highlighted that 60 per cent of franchisors believe economic conditions will be tougher over the coming year, however, 82 per cent predicted their business will improve or remain at the same level.

Earlier this week, the BFA announced the finalists of its annual awards, with Prontaprint, Wiltshire Farm Foods, Pirtek UK, Signs Express, Driver Hire, TaxAssist Accountants, Apollo Blinds, Snap-on and Countrywide Ground Maintenance all in the running for the top award of Franchisor of the Year.