27-11-2007
Benefits of franchising for business start-ups explained
News by Adfero for Simply Business - independent providers of business insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.
Franchising is a less risk-prone strategy for anyone considering starting up a business, it has been claimed.
Pip Wilkins, client services manager for the British Franchise Association (BFA), said that although franchising offers less of a risk for someone starting up their own business, becoming part of a large brand can be difficult.
Among the best known-brands for franchising are Thornton's, Clark's Shoes and Domino's Pizza.
"The failure rate is a lot less when you compare it to start-up businesses where people have gone it alone, because they have the backup and support of a national brand behind them," said Ms Wilkins.
"It presents less risk for someone who's looking to go into business," she added.
In related news, the results of the BFA/NatWest UK Franchise Survey show that, over the course of last year, the UK's franchise sector reported growth rates of 4.9 per cent.
However, as a whole the UK economy reported growth rates of 2.7 per cent in 2006.