FRANCHISORS should Panic! $2 trillion off world markets – as it happened. The economic implications of Brexit on Franchising will be felt by companies on a global basis
Franchising will see change in the UK unless the wheels of EU Brexit are set in motion quickly.
Image courtesy of Rawich at FreeDigitalPhoto.net
It would be beneficial to all if negotiations for trade with Europe is set in place and it will help all nations if the UK is offered a deal without huge constraints.
If nothing is done, times will get tough and it could then be expected that voters will be remorseful to the point of another referendum being demanded.
Our country has a population who voted in favour of recession, not directly but by leaving the EU it was always forecast and it is starting to look as though we are rapidly heading into tough times.
This has been established as a forum of comment on the impact of Brexit and Franchising business.
The Franchising banks are currently not planning change to lending criteria within the franchising sector but they do soon change their minds and any franchise buyer on the cusp of buying would be advised to get on with an application whilst the banks are funding new businesses.
We want to be clear that for franchising and Europe, it is very much ‘business as UNUSUAL’. We will continue to work closely to monitor the situation and advise global franchisors on Franchising across Europe.
The fact is that as bank shares have been wiped over the last three days, there will not be money to invest in new franchise businesses and even huge infrastructure projects are being placed on a back burner.
Just look at the news, even the NHS was £350m a week better off according to the leave campaigners until Mr Nigel Farage admitted it was sales speak and not the true picture.
Another aspect was the assumption that a free trade deal could be struck, with UK borders closed and we could have business as usual with immigration under control.
Today– Brexit ministers are faced with a slight offer of trade with the EU based on free movement between countries and as final as we are about our border it comes at a huge price.
The price of closed borders with restricted trade is a massive downdraft in the financial markets and £3 trillion just got wiped off the global markets in our first 24 hours.
Richard Branson has commented “We lost more money in British shares than we paid into the European Union since the European Union started in one day. It’s been a bloodbath”.
“Young people, overwhelmingly, are telling me up until four days ago they could live and work in 28 countries – suddenly they’re restricted to one country. Britain’s going to be broken up into smaller units.”
Frankly any Franchisor seeking a foothold on the Continent would be advised to go for it now and make the most of our single market.
For globally minded franchisors Airstream Consultants (UK) Limited are offering initial free advice and a service that could take companies into the EU swiftly.
Gil Ostrander has more than 35 years of experience in real estate sales, franchise development, sales management and training in Canada, America and Europe. From 1995 to 2001 he was involved in the European expansion of the RE/MAX® franchise real estate system helping to establish the first 750 offices in Europe.
This company are backed by veterans who have opened businesses in 20 countries and created thousands of outlets for UK and US giants.
As a business developer it has been a pleasure to work with a handful of extraordinary people many of whom have been involved with me for around twenty years sharing a vision for a a different way forward.
We help with franchise development plans, our role is market data, positioning, you need to be within a growing segment, have a pilot with solid financial qualifiers and have an offering suited to that marketplace. I only work with management teams who have BIG aspirations and who truly care about the welfare of the franchisee.
Our focus is to work with management teams who say – we have a BIG vision and business model we want to share with the world.
Our approach has seen US world leading brands utilize our support to open several continents, many countries and appoint thousands of agents.
We’ve recruited franchisees/agents, trained, managed, found country managers for many U.S. market leaders
Do get in contact +44 1886 880088
By Richard Williams