As many employees of large and medium businesses know, the economic woes are still continuing around the world, but reports confirm the worst is over and the economy in some areas is showing signs of recovery.


What about the thousands worldwide made redundant by the global recession? Take the money and run? Go back to the university? Buy a small business franchise?


Small Business Franchise

Franchising, the concept of selling a proven product or service and using the associated trademark in exchange for payment to the owner is a rising form of business organisation for those enjoying the statutory redundancy package.


The franchise industry has now expanded from being associated with fast food such as McDonalds, KFC, Subway, and Dominos Pizza, to a diverse range of products, goods and services from automotive supplies, online franchise, to wedding services, all at an investor’s disposal and within the redundancy payment budget.


There are various advantages and disadvantages of a business franchise, low start-up costs, proven brands like Subway; The number 1 franchise worldwide for the 13th year running (entrepreneur magazine 2009), and the chance to run your own business, but these can be offset with limited growth potential and ongoing royalty payments.


Franchises have always been a part of many countries worldwide but it isn’t until recently that the ideals and benefits of what a small business franchise offers have been noticed.


UK Franchise Industry

In the UK alone the annual turnover generated by franchising was in excess of £10billion in 2008 and franchise opportunities are continually raising, but fierce competition is leaving no profit for the franchisee. So, we can safely say that recession it’s a great time for small business franchisors but not necessarily for the franchisee.


So, think very well when answering the question: Who do I want to make rich, the franchisor or my self? Just make sure you don’t fall for the classic trap: “recession proof business”. Recession is tougher when your redundancy pay in going down the drain.


For many freshly redundant individuals courtesy of the 2009 recession, that are now investing in their own small business franchise and becoming the employer, the franchise is becoming popular, that’s for sure.


Sad to say, this is not a popularity contest; popularity will mean nothing when you realize all your redundancy payment went to the franchisor’s pocket in vain.


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