The franchise industry has been largely unaffected by the recession, new research suggests.
The industry as a whole contributed £11.4bn to the UK economy last year according to statistics from NatWest and the British Franchise Association (bfa). The number of franchises trading profitably has remained at 90% which marks no change in the last 12 months.
Brian Smart, director general of the bfa, said: “There is little indication so far of the recession having a severe impact on the franchise industry. 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 found that 82% if franchisors expect their businesses to improve or remain the same during the next year, while only 18% are anticipating trading conditions to worsen.
Smart added: “It’s clear from this survey that the franchise sector is proving resilient to the economic downturn by investing heavily in activities to drive business forward and ensure future success. It is a mark of the enthusiasm and commitment of franchisors and franchisees that they continue to drive new business and retain it with such vigour.
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