Scots' love affair with franchises paying off

Published on Monday 2 June 2008 21:41

FRANCHISED businesses in Scotland grew last year at more than treble the rate of the Scottish economy, according to figures published today.

Scottish franchising grew by 7.1 per cent while Scotland's gross domestic product (GDP) rose by 2.2 per cent, research by the British Franchise Association (BFA) found.

The association reports that there are 2,959 franchised units operating in Scotland, with an average reported turnover of 384,600, 24,600 more than the overall UK figure.

And the number of chains using franchises has grown from 346 to 493 in the past decade, making the sector worth 1.47 billion.

The figures were released ahead of Scottish Franchise Week, which starts on 9 June.

Bill Hendrie, chairman of the BFA's Franchise Group for Scotland (FGFS), said: "I think the research shows franchising is still buoyant and the franchise system model is a less risky way of starting and running a business than going out on your own.

"Of the franchisees surveyed, only 14 per cent thought general economic conditions will improve over the next 12 months and 68 per cent said they believe conditions will worsen.

"Nonetheless, in terms of expectations for their own businesses, 50 per cent of the franchisees were optimistic that conditions for their own businesses would improve over the next 12 months."

The FGFS was set-up by the BFA in 2002 to promote franchising in Scotland.

The group's members include Baguette Express, Myhome Group and Snap on Tools.

Ken Cairnduff, who sold his Internaionale and Au Naturale chains to Ossian Retail Group for 45 million, will address 300 business people at a "franchise breakfast" on 13 June.

Scottish Franchise Week coincides with the British Franchise Exhibition, at the Scottish Exhibition and Conference Centre, in Glasgow, on 13-14 June.

The BFA has also launched its annual franchisee of the year awards, the theme for which is "managing change".

Brian Smart, BFA director-general, said: "We are looking for examples of the franchise model that demonstrate the fusion of a franchisor driven to build and support a network, and franchisees who are committed to developing their own business".

Lisa grabs her own slice of the action

LISA Tobias began working part-time as a Domino's pizza maker while still at school. Today, she is a franchisee, running four branches in the west of Scotland.

Tobias, 27, was Domino's manager of the year in 2002 and the success inspired her to start her own pizza shop.

In 2004, she opened her first Domino's store in Kilmarnock, which was followed by outlets in Ayr, Clydebank and Govan.

Tobias said: "Starting my own franchise was a big challenge but I had so much support from head office, my team in store and my family that it didn't take long to build a successful business.

"That's what is so great about franchising. You have all the benefits of becoming your own boss, with the added safety net of a recognised brand and strong internal management structure."

Her success has continued, with Tobias now ranked as one of Domino's leading fanchisees around the world.

She is now sharing her talent as a regional ambassador for the Prince's Scottish Youth Business Trust and a "Girls! Make Your Mark" ambassador for Enterprise Insight.