- Franchising Fund will be adding an extra £100m for 2016
- Franchising makes £15bn estimated contribution to UK economy
- More than 44,000 franchised units in the UK
AIB (GB)’s Franchising Fund will be adding an extra £100m for 2016, twice the size of the fund launched last year. Franchises with three or more units will be able to access the fund, offering them the holistic, full banking service they require.
It follows a recent survey by the British Franchising Association showing an increased demand for franchising, with the contribution to the UK economy estimated to be £15.1 billion. This is an increase of 46% over the past 10 years.
AIB (GB) Head of Franchising, Francine Allen, said, “This year’s numbers show a great momentum in our Franchising business, but demand was so high during 2015 that we have needed to increase the Franchising Fund.”
80% of franchise brands in this country are UK-owned and developed, with fast food chains, coffee shops, retail and hotels regular users of the model.
Gerard O’Keeffe, Head of AIB (GB) said, “Franchising is an increasingly important aspect of the U.K. Economy and can provide a useful structure to bring new investment and high quality owner-managed businesses. We believe these businesses are the engine of our economy and franchise businesses are a great example, so we are determined to support their development. AIB (GB) is a business bank with a dedicated relationship banking approach focussed specifically on supporting the growth of owner managed business.
“Franchising offers business owners and entrepreneurs an opportunity to benefit from the success of an existing brand, as well as mitigate a degree of risk associated with starting a new business venture from scratch.”
There are estimated to be 44,200 franchised units in the UK, with more than half of those surveyed claiming an annual turnover of more than £250,000. More than 621,000 people are currently employed in franchising in the UK.
The British Franchise Association survey is available here: http://www.thebfa.org/about-franchising/franchising-industry-research