There are 310 franchised businesses here, with an estimated combined turnover of more than €2.5 billion employing 27,000 staff, writes Frank Dillon.
The Irish Franchising Association is in celebratory mood this week. Last night there was a gala dinner and an awards function marking its 25th anniversary, while a two-day exhibition starting today in the RDS in Dublin will highlight the opportunities in this business sector.
Franchising undoubtedly represents a lucrative business opportunity for some. According to the association, which recently surveyed the market here, there are 310 franchised businesses in Ireland, with an estimated combined turnover of more than €2.5 billion and employing 27,000 staff.
The association’s chairman, John Green, who holds the master franchise for Chem-Dry in Ireland, says the sector is buoyant. He predicts turnover growth of 22 per cent next year within this sector – impressive figures in the midst of a recession.
“Franchise businesses have a 10-year survival rate of over 90 per cent whereas 60 per cent of stand-alone businesses fail within their first few years,” Green says. “That gives a good barometer of the success of the sector.
“The great advantage of franchising is that you are buying into a proven concept with all of the major problems ironed out. You have independence of running your own business with the support of the franchisor as well.”
However, franchising also has its downsides and anyone considering investing in one needs to be aware of the potential pitfalls associated with this form of business. Read more.