Press Release

British Franchise Association

Franchise businesses across the country are reporting not just survival stories, within this time of economic uncertainty, but real success stories; further underpinning the belief in the industry that franchising is one of the most successful and resilient business models in the UK.

Brian Smart, director general of the British Franchise Association (bfa), said: "The 2008 NatWest/bfa survey, published at the start of the year, showed that the number of franchise networks had increased year on year for the last 15 years and in 2007 saw its economic contribution grow at nearly five times that of the national GDP growth (15% economic growth in franchising against a 3.1% GDP growth)."

"With the focus and hype surrounding the economic condition of the UK over more recent months, we felt it was important to hear the voice of actual businesses today; what they think; how their businesses are operating. The result was a continuing story of success and resilience."

Andy Hirst, head of franchise development of Dominos Pizza Group Ltd , agrees: "In contrast to the economic gloom we're still doing very well and last month reported record double digit sales growth in our half year financial update. We're on track to open our target of 50 new stores this year, and franchisees keep snapping up our exciting new business opportunities. The tried and tested formula of a franchised business offers a welcome safety net, when coupled with a quality product offering and a strong brand."

Mark Lemmon, chief executive officer of Cash Converters , has seen the recent months as a very positive time: "Cash Converters have opened between six to eight stores a year for the last five years and this shows no sign of slowing down, in fact quite the reverse as existing franchisees see the rewards of the business and open additional stores. Key performance indicators have grown steadily for the last seven years and this continues to be the case this year with retail sales remaining in strong positive growth on a true like for like basis."

Even relatively new businesses are succeeding as franchises in this market; Trevor Brocklebank, managing director of Home Instead Senior Care , said: "We only began franchising in the UK and Ireland in 2006 and already have 38 offices across the region. Combined they produced monthly revenues in excess of £pound;1.5m in July 2008. This is more than double the £pound;672k achieved in July 2007. Demand for franchises is strong; ten new owners have joined in 2008, with another four preparing to open for business. In a tight economy, the quality of the business model is critical."

Identifying more of the key advantages of franchising Nigel Toplis, managing director of Recognition Express added: "Franchising has proven to be, by anyone's measurement, successful at launching and sustaining profitable business. The NatWest/bfa Survey of Franchising for 2007 research concluded that 93% of all franchises were profitable after two years compared to the extraordinary fact that four in five non-franchise businesses fail within two years. The very essence of a franchise of course is that you can access knowledge, key areas of best practice, business tools and training. Franchising is about being in business for yourself, not by yourself."

Brian Smart concluded: "We found in recent research that given the choice, twice as many customers would prefer to use a franchised outlet over a non-franchised outlet. Locally owned businesses, with national business support are a real success story and we expect to see the trend towards more franchising continue."

The bfa accredits and supports good ethical franchising across the UK; providing new business opportunities, economic growth, and a significant number of new jobs.

Additional quotes from across the UK:

John Murphy, franchise director of Rush Hair , said: "As far as trading goes, we are posting record opening after record opening. Almost every Rush franchise that has opened recently has outdone its predecessor. Looking at the bigger picture, what worries me most is the uncertainty of the 'experts' at the Bank of England over interest rates. In my experience, people don't like uncertainty, and if we continue to talk the economy down enough it will shake people's confidence and they'll stop spending. It's easy to be gloomy about things; people use words such as 'recession' and 'credit crunch' as an excuse not to do their job properly. If we're having a slow day at our salons, we get out there and work hard to entice the customers in."

Mark Witter, director of Venture UK Limited , said: "Venture, like many other reputable and successful franchise businesses, has to adapt to the changing circumstances that we find ourselves in. Instead of this happening exclusively from the centre however, a franchising business structure means that every single franchisee is also using their specialist skills and knowledge to do exactly the same. External enquiries for a Venture franchise continue to be strong and this does no more than reaffirm our view that a well operated franchise business offers a more resilient environment than many others business formats"

Chris Ash, group business development manager of Rosemary Conley Diet and Fitness Clubs , said: "Rosemary Conley Diet and Fitness Clubs (RCDFC) franchisees all over the UK are seeing continued increases in the number of members attending their classes. The company is currently receiving an unprecedented number of enquiries from individuals wishing to change their career to one which is active and rewarding, and which allows them to be in charge of their own destiny."

Leo Martino, managing director of Moss Rid (Franchising) Ltd , said: Almost every headline on television, the radio and in the newspapers is about the "credit crunch". As a newly launched franchise opportunity in the property repair and maintenance sector should we be full of doom and gloom, certainly not! At Moss Rid (UK) Ltd our customers continue to look for a quality service which meets their needs, our sales and installation figures confirm this, in fact we have just completed our BEST EVER business quarter in 11 years of providing our roof restoration service. For many it is indeed time to take control of their future and write their own headlines- of success!"

Adrian Drewe, Chairman of Atlantic Resource plc , said: "We are a three year old company, but we only started franchising in October last year (2007). We now have 16 franchisee partners, with a further four training next month to make 20 in the first year. We are attracting strong candidates some of whom have taken advantage of redundancies, either threatened or actual, to join us. Others are attracted to Atlantic and also franchising as a safe way to start in business for themselves."

Sophie Brooks, franchise support manager for Clive's Easylearn Pop Music Schools , said: "Recession, what recession? Clive's Easylearn Rock and Pop Schools have taken on eight new franchisees this year and are opening 17 new outlets across the UK and Southern Ireland - and more coming are through." Network Director Clive Brooks said: "In any recession, parents tend to put their children first. Their activities are often the last thing to go when money gets tight. For this reason, we always find that we are unaffected by any so-called downturn. In fact, since we began in 1981, we have seen off a number of much more significant recessions and continued to grow the network."

John Ball, sales and marketing director for Countrywide Signs , said: "Our company operates within the Estate Agency and housing market a market which is in the thick of the credit crunch. The media can (if you allow them) convince you that all is doom and gloom. Not so we have recruited seven new outlets in 2008 , and many new clients by them, yes there is a downturn of around 6% overall in our case which is much less than national figures show, lettings property and a change from one selling agent to another by Vendors has compensated for fewer sold.

Christine Stanschus, managing director of Little Kickers Group , said: "Over the past six months, we've seen an increase in the number of people who are contacting us about our franchise programme, and firmly believe that the proven successful business model we have developed will continue to drive more people to contact us in the future."

Alex Waite, franchise recruitment manager of Dream Doors , said: "We at Dream Doors are very optimistic about the company and our future growth. In times of economic uncertainty we are finding that the concept of the kitchen facelift, a cost and time saving solution to a complete kitchen refurbishment, is an attractive proposal to customers who are watching the pennies. With regards to recruitment we are generating quality leads from individuals and couples who are serious about their plans for business."

Simon Dalziel, franchise director of Bluebird Care , said: "Even in these times when money may be tighter we have seen no change in the volume of franchise enquiries we receive or indeed in franchisees joining our network. Care is a growth market, Bluebird Care has a proven business model in this market and we have continued to open 2 franchised offices each month."

Peter Hurford, managing director of Kwiklite (Franchising) Ltd , said: "We are in the right place at the right time helping our customers reduce costs and save money. As a business to business lighting maintenance company we see more lighting maintenance work being outsourced as companies continue to shed maintenance staff. Good lighting is an essential requirement for all work and retail environments and no matter what restrictions on capital expenditure may apply, lighting still needs to be maintained for health and safety reasons alone."

Godfrey Lancashire, managing director of London House , said: "At London House we are experiencing rapid growth with our core business and not just from our major national clients including all the High Street Banks, but also from many small and medium sized enterprises."

Tony Marsh, sales & marketing director of Signs Express , said: "Signs Express is continuing to see growth year on year through its franchisees. Whilst we cannot be complacent in the current economic climate it does demonstrate that our "model" servicing the B2B sector remains strong. In the last nine months we have opened three new centres with another opening in October and in the same period we have also overseen four business re-sales."

Jeremy Woolger, co founder of On My Doorstep Ltd , said: "At On My Doorstep Ltd we have noticed a two-fold increase in the number of enquiries regarding our franchise in the past couple of months, with a high proportion of those candidates being made redundant from the corporate world. A common theme is that they have come to realise that there is no longer the job security associated with being employed in the traditional sense and are taking the opportunity to realise their dream of becoming their own boss. They recognise that franchising offers a much lower level of risk and investment, combined with the potential to create a profitable operation in a much shorter timescale, than if they were to start out alone from scratch."

Clive Collins, director of Hob Salons , said: "The negative state of the economy is affecting everyone; however our hob salons franchise programme is still receiving interest. Welcoming those who seek to open a salon of their own under a successful hairdressing brand, interest in the hob franchise programme has not hugely suffered. Offering aspiring business people a franchise framework which works is proving to be a lot more favourable than them opening a one- off salon on their own, without a solid support system in place. Franchising with an established company offers a path of greater security and structure in an economy which is currently extremely uncertain."

Edward Mauleverer, managing director of Eds Garden Maintenance , said: "Ed's Garden Maintenance is celebration this month by delivering over a quarter million pounds already in 2008. Eds has seen the business achieve 12 franchises since establishing in 2007, smashing its first year franchise target by a massive 67%. Evidence of Ed'S success is demonstrated in that each of the 12 operators has exceeded their own individual business plan targets and all those that have completed their first year have generated an average of significantly more than £pound;40,000."

Sean Cragg, franchise manager of Caremark Limited , said: "Caremark, operating in the enormous social care sector is surpassing its growth expectations both in core business and with very encouraging recruitment of new professional Franchise Owners."

Chris Allison, managing director of Auditel (UK) Ltd , said: "We have seen an increase in the number of people enquiring about an Auditel cost and purchase management franchise and in the number of companies who have a need for our services. More and more hard pressed FDs are asking for our help in their struggle to maintain profitability. This has made our format very attractive to potential franchisees and we are well on the way of reaching our target of newcomers for 2008."

Jo Franks, joint managing director of Popstars Academy , said: "We have been inundated with requests for our services from all over the country confirming the time was right to launch our franchise package. Two existing employees were our first franchisees and are enjoying success in NW London and Thames Valley East with West London now in the pipeline we have had an excellent launch to the franchise side of our Business."

Keith Davidson, head of marketing of Prontaprint , said: "We've spent the past two years rolling out our new brand positioning and changing the face of our centres across the UK and Ireland. As a result of this sales growth of repositioned centres is five times greater year-on-year compared to the rest of the network - refreshing news in today's economic climate. People are increasingly moving into franchising over setting up businesses from scratch - safe in the knowledge that they will be operating under a well-established and trusted brand."

Gary Chambers, general manager of Apollo Blinds , said: "Apollo Blinds is a strong franchise proposition and will always attract potential investors who want to build a business using our brand to generate a substantial income and a healthy return on their investment. We have confidence in the franchise market and will be unveiling a brand new franchise business model at the BFA show at the NEC next month."

Gill Thomas, managing director of Jo Jingles Limited , said: "Our franchise is continuing to expand and although the first half of 2008 was fairly quiet we have experienced a significant increase in the number of applications for specific areas where we are trying to recruit during the last few months. Many people are finding themselves facing an uncertain future at work but franchising provides a realistic and proven business model for them to consider setting up in business."

Garth Allison, managing director of FASTSIGNS (UK) , said: "Franchisees can rely on the centralised knowledge and expertise of the franchisor. It's a tried and tested business formula. We do the research and provide information so that franchisees can target the right customers, in the right way, at the right time. One of the great advantages of franchising is sharing best practice and we encourage the exchange of ideas to help our businesses stay ahead of the competition."

Christopher W. Jones, managing director and master franchisor of Sunbelt Business Brokers , said: "We have seen an increase in interest for our franchise opportunities. This is due to a number of factors, one being that a number of people in the financial services industry are being made redundant or are looking to take their future into their own hands and are finding us to be a viable option moving forward. We have seen a shift perhaps in the type of business that we are doing in that the high street type market has slowed down while the commercial/industrial side of our business has picked up. I would have to say that if it were not for the media and everyone talking about what the media are saying than we would never know that it was not business as usual."

Alan Mason, Director of Franchising for Papa John's , said: "Papa John's has found 2008 to be a strong year in terms of performance. Despite the general doom and gloom surrounding the economy we have seen both our sales increase and the number of people looking to become Papa John's franchise owners. In 2008 we set ourselves a target of 20 percent growth in terms of store numbers, so far we have opened 14 stores and are scheduled to open at least a further 10 by the end of the year – allowing us to comfortably exceed this target."

Steve Byrne, managing director of Travel Counsellors , said: "We have found that we are getting a lot of interest in the Travel Academy even in the current economic climate and I think that is because of the unique nature of what we offer - particularly the fact that our agents are home-based. I think there is a big attraction in being able to build your own profitable business in an area as exciting as travel while also being able to enjoy the flexibility that working from home brings."

Simon Stott, managing director of Countrywide Grounds Maintenance and Countrywide Lawn Doctor , said: "Despite the credit crunch, we have experienced enormous growth over the past 18 months. Ironically, throughout our 22 years experience as franchisors, we actually look forward to an economic recession as we know it delivers significant sales growth opportunities for our network and generates high calibre new franchisees."

Steve Calvert, franchise manager of Dent Wizard UK Limited , said: "The economic situation is challenging but not as dire as the media would have you believe, by recognising the challenging conditions and making changes to our business model we are set to exceed our original budget. In a strong economic cycle, investing in a franchise limits the chance of business failure. In a weak economic cycle the chance of a new start business failing increases, I would therefore suggest that investing in a franchise business in a weak economic cycle actually provides a greater reduction in risk and a higher chance of success than in a booming environment."

Ian Chubb, managing director of The Garage Door Team , said: "We chose to expand our business through franchising, in order to minimise our overheads and avoid the cost of expensive showrooms. More importantly, we thought it would help us reduce prices for our customers while also improving our customer service levels. And it looks like we made the right decision. Despite the tougher economic climate, we've enjoyed an increase in sales of 30% within the last year.

Kirti Patel, marketing assistant of Chemex International Ltd , said: "Chemex continues to gain brand presence in many market sectors. The company has undergone many developments to strengthen its sales and marketing functions such as initiating and supervising a large sales campaign in a market sector the company excels in and introducing individual franchisee websites. As cleaning and hygiene specialists, franchisees help businesses concentrate on their operations whilst they work on cleaning and hygiene processes."

David Gouldney, operations director of Urban Planters Franchise Ltd , said: "While this is undoubtedly a tough time for all business, and we are finding our losses are higher this year than in recent years due to some customers going under, our sales have actually been 10 per cent higher in the year-to-date than projected. Our entire network of franchises is continuing to do well, with even our newest franchises meeting their targets for this year."

-Ends-

Notes to Editor

The British Franchise Association (bfa) is the voluntary self regulating governing body for franchising formed in 1977 by the major franchising organisations. It aims to accredit and promote those franchise systems that meet the strict ethical and business criteria of a good franchise.

The term 'franchising' has been used to describe many different forms of business relationships, including licensing, distributor and agency arrangements. The more popular use of the term has arisen from the development of what is called 'business format franchising.'

Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis.

The bfa hold a full list of all of its members and the code of ethics, to which these members subscribe to, on its website: www.thebfa.org

For any media enquiries please contact Marketing on 01865 379 892 or email the bfa's Marketing department.