Small businesses in north-west 'exploring franchising'

Date: 25th March 2009

Small businesses in the north-west of England are increasingly exploring franchising as an effective way of beating of the recession.

That is according to the Forum of Private Business (FPB), which claims that by allowing other firms to replicate a successful company strategy, the franchisor can collect a hefty cut of royalties.

Firms which are interested in the prospect of franchising, but are not sure of the financial implications, could potentially seek advice from a local accountant.

Director of finance at the FPB, Nick Palin, said: "Rather than simply referring to the march of established brands … [franchising] can be a method of growing a small business without breaking the bank.

"Amid the current economic crisis, business owners in the north-west, in particular, appear to be waking up to this."

Meanwhile, figures from the Bank of Scotland have revealed that about a third of small businesses are expecting disinflation to turn into deflation by the end of the year.