New report urges MPs to back franchising

A new report, published by Norwich-based Franchise Development Services (FDS), has revealed there is a pressing need for the Government to aid and encourage the UK's franchise sector to help revive the UK economy.

The report, The UK Franchise Industry And International Franchise Markets, has been produced by MBA students from the Norwich Business School at the University of East Anglia (UEA), and reveals how underdeveloped the UK's franchise industry is compared to other countries. Franchising in the UK turns over £19.7 billion a year, compared to the USA's turnover £740 million and Australia's of £128 billion.

The students interviewed a number of businesses on FDS's comprehensive database of more than 1,500 franchise brands for the project and discovered that none were aware of any Government initiatives to help UK companies expand their franchise networks domestically or in international markets.

Those brands wishing to franchise abroad stated that demand, language and culture were main factors when considering overseas markets, which was highlighted by Australasia and North America being the most favoured territories.

This interest in exporting is a very positive one for the UK franchise market, states the report, with saturation of the domestic market the lowest criteria for overseas development.

The report revealed that there is a real need for the Government to provide information on target markets, and help UK companies to showcase their businesses at international exhibitions.

Those interviewed also suggested more should be done to encourage banks to finance franchise owners as well as franchisors, introduce mandatory registration for franchise businesses and a membership fee structure for the British Franchise Association, based on each brand's turnover.

Professor Roy Seaman, CFE, Managing Director of FDS, said: "This report acts as a wake up call for the Government to make the most of the opportunities that franchising can do to help the UK economy nationally and internationally. Currently there are around 20 MPs who are supporters of the franchise method of starting a business by owning a franchise, as well as encouraging owners of successful businesses to expand by franchising. FDS holds a database of more than 105,000 people interested in owning and operating a franchise with an average amount of £55,000 of liquid funds available for investment. This equates to £5.775 billion of funds available.

Published by FDS, the hard copy of the report is available for £45 + VAT and digital £25 + VAT.

Please call 01603 620301 or email enquiries@fdsltd.com to order your copy.