A lack of awareness amongst the general public is hampering growth in the franchise sector, a new study suggests.
The study conducted by Ovenu, the oven valeting franchise, reveals that almost one third of people have very little idea of what a franchise is.
Also, of those who claimed that they knew what a franchise was, over half couldn’t give a simple satisfactory explanation, researchers found.
Awareness of franchise operators was also low and mostly limited to recognised brands in the fast-food sector.
Ovenu managing director, Rik Hellewell, says that the survey reveals ‘considerable ignorance’ amongst the UK public, and has written an open letter to the British Franchise Association (BFA) calling for them to take action.
He says the BFA and the industry as a whole needs to ‘think smarter’ in order create wider interest in franchising, by moving away from traditional promotional methods and focusing more on new media.
Ovenu says that people are four times more likely to use online resources than traditional routes when researching franchising.
Mr Hellewell said: “This study must be the wake-up call franchising needs to move into the 21st century and realise that without a cohesive and cost-effective recruitment process supported by our trade body franchisee numbers will drop dramatically.
“If this sector is to attract more people to franchising the BFA and franchisors needs to move out of the comfort zone and think smarter about the way it works to promote itself with partners such as banks, business link and the media.”
The British Franchise Association have not responded to Mr Hellewell’s letter.
© Crimson Business Ltd 2006
