FUTURE BRITISH ENTREPRENEURS HAVE CONFIDENCE IN THE UK ECONOMY

Media Release - 19 October 2004

A survey by the British Franchise Association (bfa) has found 90 per cent of budding entrepreneurs have the confidence in the UK economy to now start their own business.

This confidence in the economy bodes well for National Franchise Week (NFW), October 4-10, organised by the British Franchise Association to promote franchising as the safest, most successful route into starting a new business.

“Get Ahead, Get Into Franchising” is the message the bfa is promoting during NFW. The week of franchise awareness events, sponsored by Volkswagen Commercial Vehicles, will be officially launched on Monday, October 4, at HSBC’s headquarters at Canary Wharf.

bfa Honorary President and former Press Secretary to Margaret Thatcher, Sir Bernard Ingham, said: “Franchising has a splendid record - well over 90 per cent success rate in boom and recession - for helping people who never thought they would go into business to launch themselves on the market and then keep them there profitably. This is because ethical franchising, represented by the British Franchise Association, is essentially a mutually beneficial partnership between franchisor and franchisee.

“The franchisor builds up his business with the aid of a franchisee who buys into the action. The franchisee acquires not merely a saleable unit but also the help and experience of the franchisor. Experience shows it works - and works very well indeed.”

bfa Director General Brian Smart said: “Franchising is one Britain’s best kept secrets. Over 690 UK businesses brands have chosen business format franchising as a strategy for growth. The industry employs more than 330,000 people with a combined turnover of £9.65 billion and is proving to be a safer and more successful route for business start-up (as many as 95 per cent of franchisees report profitability).

“The sector is being held back by too few good potential franchisees for the many excellent new start-up opportunities and few businesses aware of the opportunities and potential for growth through business format franchising. We need to unlock some of the secrets and our National Franchise Week 2004 will do just that.”

National Franchise Week (October 4-10) promotes ethical franchising throughout the UK. The week of events are run by the bfa, in conjunction with NFE organisers Venture Marketing Group and HSBC and Express Newspapers, who sponsor the bfa Franchisee of the Year Awards. For more information on events throughout the week visit the dedicated website: www.nationalfranchiseweek.co.uk.

ENDS

Notes to editors:

The bfa is the home of ethical franchising, with a membership base of 248 franchise brands covering 13 industry sectors. For more information visit our website www.thebfa.org

1. The British Franchise Association (bfa) evolved from the franchise industry itself in 1977 as the only voluntary accreditation body for franchising in the UK. Its remit was and is to develop and continuously improve the standards of good practice in franchising and to accredit franchisors that meet these standards. Many organisations say they are ‘franchisors’ - not all are, and not all are accredited by the bfa.
2. From humble beginnings back in 1977 with eight founding member franchisors, the bfa has grown to represent more than 250 franchise brands today, with around 15,000 franchisees operating in a bfa-accredited franchise network across the UK.
3. The UK franchising industry has a turnover of £9.65 billion, employs more than 330,000 people and is responsible for introducing approximately 3,000 new small businesses into the UK each year.
4. Last year 95 per cent of all franchisees reported profitability, with 97 per cent of franchisees operating their business for five years or more reporting profitability.

For further information please contact the bfa on tel: 01865 379892, email the bfa's Marketing department.