29-08-2007
Franchising a recipe for success in retail sector
Franchising is usually associated with fast food outlets, but clothing and department stores are now proving that it is the fastest way to expand into new markets.
In the past few months several big name UK stores have announced rapid expansions into foreign markets, thanks to a successful franchise operation. Fat Face has launched in Asia, New Look in the Middle East, China and India.
Chris Wormald, head of franchising at Eversheds, said: “I’ve seen an acceleration of brands going international as there is an awareness of the success of others so more companies are now looking at it. There have been few people in the past doing it but now more people are talking to retailers who’ve experience with franchising.”
Franchising opportunities aren’t limited to expanding internationally. Smaller retailers could use the same principles to grow their business in the UK.
Wormald says: “There is a growing awareness of franchising domestically but it is relatively under-explored because the high street is so dominated by company-owned stores and mostly retailers don’t understand how franchising works.”
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