Real Business:
Sandwich chain Subway announces plans to open 600 stores in the UK and Ireland. Pizza delivery service Domino’s says sales have increased by ten per cent. Fast-food outlet KFC plans to create 9,000 new jobs. How come these fast-food chains are bucking the trend?
One word: franchises.
“While many industries have been hit by the recession, sectors within the franchise industry are demonstrating significant growth – from second-hand stores and car repairs to security companies and fast food,†says David Tuck of The British Franchise Exhibition. “Banks have confirmed their ongoing – and in some cases increased – commitment to lending to these prospective franchisees, as they offer an approved business model.â€
According to the annual NatWest/BFA franchise survey, a stonking 91 per cent of franchisees claim their business traded profitably last year.
