Find a service

T. 0114 276 5555

A closer look at franchising as new loan fund puts it in the spotlight

Share this page:

This week Nat West and Royal Bank of Scotland announced the arrival of a £100m loan fund for franchise businesses.

Franchising is always a popular choice for those wanting to make a start in business with a tried and tested service or product, the format also seems to attract attention and interest when employment opportunities are not as plentiful.

For those already in business and wanting to expand the reach of a proven and successful business model, regionally, nationally or even internationally, becoming a franchisor is also an option.

Rachel Neems of Yorkshire Law firm Keeble Hawson LLP, who as part of their corporate services offer specialist franchise advice, looks more closely at the business model:

“With the franchising model there really are two sides to the story. For example a franchisee will be given training in running a business and usually receive ongoing support - one area might be in marketing.”

“The franchisor however will of course want to protect their brand and good will through the day to day running of the business and usually sets in place conditions or controls to ensure that this is covered.”

“It’s worth noting as well that the British Franchise Association (BFA) – of which Keeble Hawson is an Affiliated Professional Advisor - publishes guidelines about how franchises should be run and offers help to both franchisees and franchisors.”

“This new loan fund will provide welcome resources in an area of business which is growing. Although funds may be scarce for new start up businesses as a whole, this is proof that money is available if you go down the route of starting a franchise business.”

Last but not least Rachel recommends getting legal advice about the content of the franchise agreement as well as, amongst other things, making sure the franchise is registered with the BFA, making sure the numbers add up and checking out the franchisor’s financial status and history.

You can reach Rachel Neems at rachelneems@keeblehawson.co.uk
 

Share this page:

Get in Touch