The franchise business will contact you by means of email and/ or telephone only to the email address and phone number you have provided.
By submitting the enquiry form you are consenting to send your personal information to the selected franchise business.
You also agree to receive further newsletter email marketing from What Franchise.
Close
Why are banks more likely to lend to a prospective franchisee than a new independent business?
I should start by saying that you are working on a false premise if you think that this is true for all franchises. The first franchisees for a new, relatively unproven franchise that has not been developed with the help of British Franchise Association-affiliated consultants and lawyers will get no better terms from a bank than will an independent start-up. Indeed, depending on which non-approved advisers have been used, the potential franchisee may not be able to get any funding at all, whereas an independent start-up with experience of the sector in which it intends to do business may get it relatively easily.On the positive side, franchisees of a well structured, relatively proven franchise that is also a member of the bfa are often welcomed by the banks because they represent a much safer lending proposition. This is simply because the experience that a franchisor brings to the party, together with the initial and continuing training and support that comes as an integral part of the package, virtually ensures the franchisee will not fail, provided of course that the latter follows the system and does everything that they should. Comparison of business failure statistics provided by HMRC and franchisee failure statistics provided by the annual NatWest/bfa survey of franchising often suggest that franchisees of well structured franchised networks are five times more likely to stay in business over a given period than are independent start-ups.
You might also be interested in

Answered by Alan Wilkinson
Alan Wilkinson writes: When a franchisor recruits franchisees, it will have a set profile of the type... read more

Answered by John Pratt
John Pratt writes: There may be none if you’re not suited to dealing with businesses. Many people like... read more

Answered by Louise Harris
Louise Harris writes: Not all franchises are based on territories. Some may be split into business sectors,... read more

Answered by Renata Selley
Renata Selley writes: Your ‘year-end’ is the date when your franchise accounting period ends. Communication is king... read more
Exciting Franchise Opportunities

Start your own NKD Pizza franchise
Yes
Find Out More£14,000 per week

Request Free Information
Send a free enquiry to NKD Pizza for further information!
_75_20_s.jpg)
Start your own Jackson Fire & Security franchise
Yes
Find Out MoreCirca £250,000
_75_20.jpg)
Request Free Information
Send a free enquiry to Jackson Fire & Security for further information!

Start your own Bodystreet franchise
Yes
Find Out More£170,000

Request Free Information
Send a free enquiry to Bodystreet for further information!

Start your own Fantastic Services franchise
Yes
Find Out MorePOA

Request Free Information
Send a free enquiry to Fantastic Services for further information!

Start your own Techclean franchise
Yes
Find Out More£50,000

Request Free Information
Send a free enquiry to Techclean for further information!
Companies to Consider

Get expert franchising news delivered straight to your inbox
Franchise news, advice and new opportunities delivered weekly.
Must Read Articles
-
Brexit property investment myths BUSTED!
Added one year ago | 2 min read
-
Award-winning education opportunity launches in the UK
Added 7 hours ago | 2 min read
-
Why take a gamble when you can invest in a proven brand?
Added one day ago | 2 min read
Franchises by Minimum Investment
Find your next business opportunity
Search 100s of UK franchises and become your own boss today.
-
Under 10k
Starting a franchise doesn't have to be costly
Click here -
Under 20k
A mid-range investment for the more experienced
Click here -
Over 50k
If budget is not an issue, then don't miss these.
Click here -
Local Franchises
Find the perfect franchise in a location to suit you
Click here
What Franchise Newsletter
Keep up to date with all the industry news