Franchise Talk

Out on own — but not out of depth

November 2nd, 2007 | Author: Jack

Franchising is proving to be an ever more popular way for people to set up and run their own business.

Turnover in the Irish franchising sector has grown more than five-fold over the past decade, turning it into a €2bn-plus industry, according to the latest survey by Franchise Direct on behalf of the Irish Franchise Association.

Between 1997 and 2006, turnover in the sector has soared from €397m to €2.1bn.

Employment in the sector has jumped from 7,400 a decade ago to 25,461 in 2006 and there are a total of 270 different franchises in the country.

For those who always wanted to run their own business, but are not ready to take on the entire risk and burdens alone, franchising may be the answer, says John Green, chairman of the Irish Franchise Association.

“For the entrepreneur who wants to be in business for himself, but not by himself, this is where franchising comes into its own,” he says.

Ulster Bank’s head of commercial and business banking, John McGrane, agrees that it is a less risky way to get into business.

“All business enterprise brings some risk with it…but franchising reduces that level of risk because it gives a guy the opportunity to run a business that has already been proven elsewhere. That’s the key,” he says.

Apart from the reduced risk of taking on a tried and tested business concept, there are many advantages to setting up a franchise, ranging from reduced set-up time to bulk purchasing discounts.

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