The UK’s decision to leave the EU will have significant implications for franchisors and we are already working with our clients and in support of their operations whilst all the implications are understood.
For Now It is Business As Usual
The Franchising sector is adaptable and innovative when confronted with big challenges and these uncertainties will be planned out for the best way to capitalise on the situation over the next three months. Despite EU bureaucrats seeking an instant exit we will not see the UK doing anything overnight and it is business as usual for the near future. Albeit franchise buyers and sellers will ask what the UK looks like outside the EU. Will the EU see a domino effect with Greece, France, Holland Germany and other nations leaving via more referendums.
We will help to work out the details and legal issues to ensure business confidence is maximized during a time when Brexit could be damaging to global franchise companies as they adapt to new market conditions and opportunities in both the EU and a more independent UK
UK Franchisors cannot turn their backs on Europe. Global Franchisors understand we only left the EU but we are a leading economy in Europe.
For the majority of Franchisors in Britain the fact the UK is leaving the European Union – Brexit – is a major source of anxiety. Not only is the break with the EU creating uncertainty that could be bad for business, it is already damaging the UK economy and Moody’s ratings agency said Britain’s AA1 credit rating is looking negative. In fairness Standard & Poor have not at the time of writing this article made any official downgrade to the UK credit rating.
It is going to be a time when you can read a huge amount on all of the economic consequences for the UK of Brexit and we will focus in by filtering out what this means to global franchising.
Some of the news is impartial; much of it is biased and very little has been written on the consequences for the franchise industry.
Franchisor World will address this gap by systematically filtering out the news for franchisors and franchisees as Brexit makes an impact on both the UK and the rest of the Continent.
The UK has long been a favourite destination for U.S. Franchisors but Franchising has grown rapidly in Europe in recent years to overall become the biggest destination for global Franchise companies.
No need for panic as it will be business as usual whilst Great Britain negotiates is departure from the EU and we could see 0% Bank of England base bank rates to stimulate our economy.
The major parties in British politics are both the scene of a current coup, Labour has had 9 resignations from its Shadow Cabinet and whilst that rocks the left it is a divided Conservative Party with Gove/Johnson causing Prime Minister David Cameron to resign.
This is a scene of unprecedented politics but does prove democracy reigns albeit the impact on the UK and on the rest of the EU will be huge.
This is an introduction to Franchisor World as a global newsletter from Airstream Consultants (UK) Limited