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9th March 2008

Franchising is hidden secret of the high street

Franchising is the hidden secret of the high street with few consumers understanding what it is and which companies operate franchises, according to a survey of one hundred people.

 

Forty per cent of people questioned were unable to define what a franchise is and not one of those questioned could identify all the franchises on a typical high street.

 

The results are good news for franchisees, according to Franchise Development Services North (FDS North), which carried out the survey.

 

FDS North director Tony Urwin said the responses showed that franchisees were delivering a consistent level of service, putting them at the same level as branches of a national chain in the consumer’s eyes.

 

“The results of the survey show that the customer doesn’t perceive a difference between a franchise like Subway and a chain like Pizza Express, demonstrating clearly that the franchise model works in setting and maintaining standards,” he said.

 

“But it is clear that the average high street shopper is unaware of how a franchise actually operates.

 

“Only 60% of people could give the correct definition of a franchise as ‘the right to market a product or provide a service, often exclusive to a specific area, as granted by a manufacturer or company’.

 

“The remainder thought a franchise was a small, independently owned business which used the same name as a national chain.”

 

These results could have a significant impact on the recruitment of franchisees for the future, as the lack of awareness of what franchising is could stop people considering it as a career option, according to Tony.

 

“There is some confusion about what a franchise actually is, which is added to by the use of the word to refer to other things like films or books,” said Tony.

 

“And if people don’t know about the opportunities available in franchising it could stop them considering it as a way of starting their own business.

 

“It is up to both franchisors and franchisees to promote and celebrate their successes and to stop hiding on the high street.”

 

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