Regardless of whether you were a Remainer or a Brexiter, we can all agree that the political upheaval and uncertainty surrounding Brexit has made recent times seem turbulent for business. However, it can be argued that Brexit has actually presented a time of opportunity for business. This is especially apparent when considering franchising post Brexit! The British Franchise Association (BFA) state that, despite political uncertainty, 2018 was a record year for franchise growth with 6 in 10 franchises turning over in excess of £250,000. For more detail from the BFA report, read our update post.
The Bfa puts little emphasis on the effects of Brexit on franchising. This is due to the fact that the trends for confidence in business is not following the trends of confidence in the economy. Bfa research shows that over 70% of franchisees and approximately 90% of franchisors are confident in the upcoming growth of their business. On the other hand, only between 25-35% of franchisees and franchisors have confidence in the economy. Therefore, it can be seen that economic uncertainty around Brexit is not a strong influence on franchise success.
Unfortunately, it is felt that start-ups may struggle in times ahead. Without the backing of an established brand and proven business model start-ups may struggle to grow. This is as a result of banks being reluctant to lend money to start ups following the uncertainty Brexit will cause. However, banks are seldom reluctant to lend money to new franchises. This is as a result of the confidence that banks have confidence in the performance potential that franchises possess. Therefore, the potential for growth with a franchise (both with the backing of an experienced franchisor and the capital a bank can provide) truly is staggering.
At Just Shutters, we have an extremely positive outlook on franchising post Brexit. We have a solid presence and unrivalled reputation in the UK as a leading independent shutter specialist group. This comes as a result of the tireless efforts of our teams have put into the company. We work with one of the largest factories in China, to ensure efficiency and economies of scale.
Interested in learning more about available Just Shutters franchises? Click here to browse the territories we are seeking driven franchisees for.
Call us on 01202 233744 for further information.
Source: 2018 bfa NatWest franchise Survey