Franchising is the way out in the current credit crunch
A successful local firm has said that in the current credit crunch, franchising could be the right solution for potential business owners.
Despite the difficult financial conditions, from the start of the year Bromsgrove-based Mr Electric has seen plenty of franchisees joining the electrical services group.
Many people are starting their business under a parent company to see the advantages of it. According to national franchise developer, June Falvey, the people who are worried by the financial pressure of the credit crunch can go for a franchise to be safe. She said that the credit crunch encourages people to go for franchise as there is less risk involved when compared to an ordinary business.
According to the British Franchise Association (BFA), voluntary body for UK franchises, many people are successful in the country because of the franchisers defying the credit crunch. This has affected many sectors of the business world. They said that franchising is one of the most successful businesses in recent times.
According to a NatWest/BFA survey in the UK, last year the economic contribution of franchises grew by 15 percent. In the current trading business, many new entrepreneurs and companies are succeeding as a franchise.
Clive Houston, the managing director of Mr Electric UK and Ireland said that they provide support and training and pass on their expertise and knowledge to those who are looking to start a new franchise business.