The government is being urged to do more to look at the potential of franchising as a means of creating new jobs and kick-starting growth in the UK as figures indicate more than 500,000 new jobs can be created through franchisee development in the next five years.

Prof Roy Seaman, managing director of Norwich-based Franchise Development Services (FDS), told a meeting of franchise experts, bankers and officials from UK Trade and Industry (UKTI) yesterday that franchising can provide a tried and trusted formula to delivering growth.

“We are talking next year of creating 100,000 new jobs through franchises,” he said. “Franchises are a solid foundation with which companies can expand and new jobs can be created.”

“We are looking at about 2,000 new franchisee companies over the next five years which means by 2016 it will mean an extra 70,000 new businesses. That means 500,000 new jobs and that’s being totally realistic. What would happen if we could increase that by 10pc?”

Steve Bolton from Platinum Property Partners encouraged businesses in the UK looking to expand to also look to the franchise model as a tried-and-trusted option.

“There are many companies who want to expand but have never thought about franchising.  Businesses that are scalable and have got good profit margins can all be franchised. I franchised my property investment business in 2007 and it was the best move I ever made for the company.  Platinum Property Partners successfully launched as a Franchise in 2007, it has been the fastest growing premium franchise brand in UK history. With close to 100 Franchise Partners (franchisees) Platinum Property Partners and its partners have all benefited greatly from the power of franchising.  There is an opportunity for brands that are profitable in the UK to develop both at home and overseas via franchising.”

Mark Scott, Director of Franchise Development at Natwest, said all banks were keen to lend to support franchises, while a £100m fund set up by Natwest this year had already seen more than half of the funds drawn. “We are definitely in this for the long-term, and we are very committed to the sector,” Mr Scott said.

From a potential Franchisee point of view there is also some very good news….

“There are 37,000 franchise locations across the UK and a total turnover of £12.4bn. More importantly, the failure rate in any one year is less than 5% and nine out of ten are profitable. The right franchise really is a strong place to be.”

To find out more about Franchising refer to the British Franchise Association www.thebfa.org

To find out more about the PPP Franchise see if you qualify to attend a Discovery Day