David Mowat along with a small selection of fellow UK MPs, met with franchising industry leaders at the Houses of Parliament on 31st October to discuss the economic impact of franchising through sustainable business growth, new business start-up and job creation.
The recent NatWest bfa Franchise Survey showed that better than 90% of franchisees report their businesses to be profitable and the rate of commercial failure is currently running at less than 4% per year; between 6 and 10 times better than conventional business start-ups.
There are 897 different brands franchising in the UK today, which support 36,900 individual franchise owners – a growth of 6.5% and 6% respectively on last year. This creates employment for over 520,000 people and generates £12.4 billion income for the UK each year. In Warrington South alone there are over 30 different franchise operations employing about 450 people.
Mr Mowat met with Trevor Brocklebank of Home Instead Senior Care, a franchising operation based in Stretton and employing around 3,500 carers.
The bfa is now looking to establish an environment with MPs from across the UK to build a regular two way exchange of ideas, education, advice and support.
Brian Smart, Director General of the bfa, said:
"The success rates are no surprise. Franchising operates through a locally owned and run proven business concept, driven by enterprising individuals, with training, branding, economies of scale and support from the wider network. This removes or reduces many of the hurdles that floor most SMEs.
"Franchising is not for everyone, which is why most of our work is in educating those investigating franchising, either as individuals, or as businesses looking to adopt it as a growth model. It is important that people take the right advice and carry out their own due diligence, because when they do we see some outstanding success stories and ones that inspire many others.
"We have been delighted by the positive response from MPs at today's exchange and we thank David Mowat MP for their important support. There is a real hunger by our MPs to capitalise on what is a sustainable, proven and low risk option for many. Our goal now is to work with our MPs to help open up information and advice to many more people that may at the moment be struggling to know where to turn."
Mr Mowat said:
"With recent public sector job cuts, there will be a number of new people wondering what their next step will be. In some cases franchising can provide their best route; either providing a business start-up platform with a lower level of risk, or providing the opportunity for someone who might not ordinarily have considered being their own boss to start and run a business, create jobs and help our economy grow.
"We need more businesses like Trevor's in Warrington."