From coffee vans to gyms, franchises are everywhere, powering the UK economy and proving resilient in the face of AI disruption. Pip Wilkins QFP, CEO of the BFA, explores why franchising remains one of the most secure and rewarding business models today.
Apparently, Napoleon once told his Irish surgeon (He presumably thought he was English): “You are a nation of shopkeepers”, which went down so badly that he had to write and apologise. In his apology letter he wrote: “You were greatly offended with me for having called you a nation of shopkeepers. Had I meant by this, that you were a nation of cowards, you would have had reason to be displeased; even though it were ridiculous and contrary to historical facts; but no such thing was ever intended. I meant that you were a nation of merchants, and that all your great riches, and your grand resources arose from commerce, which is true. What else constitutes the riches of England. It is not extent of territory, or a numerous population. It is not mines of gold, silver, or diamonds. Moreover, no man of sense ought to be ashamed of being called a shopkeeper. But your prince and your ministers appear to wish to change altogether l’esprit of the English, and to render you another nation; to make you ashamed of your shops and your trade, which have made you what you are, and to sigh after nobility, titles and crosses; in fact, to assimilate you with the French… You are all nobility now, instead of the plain old Englishmen.’
The BFA
As the CEO of the oldest and largest franchise association in the UK that brings £19.1 billion to the UK economy, has over a thousand different franchise systems, run across 50,000 territories and encompasses 23 different sectors, providing goods and services to both business and consumer customers, I’d like to think Napoleon would include franchisors/franchisees in his description today.
From premises to mobile
Indeed, we’re not so far from ‘shopkeepers’ as one might think. As transportation and communications improved many businesses that were previously housed in shops became ‘mobile’ units, meaning a huge reduction in costs and a more flexible business, but essentially, still shopkeepers, selling their wares and services to their customers.
Your daily franchises
Look around you and you’ll find a multitude of businesses, all running happily under the franchise model; from the lady who runs the coffee van at the train station on your way to work, to the sandwich bar or coffee shop you get your lunch from.
From the business coach who’s helping you to build your business and train your staff, to the cleaning company who come in to hoover and polish in the evenings.
Franchise companies are walking your dogs, teaching your children to swim, sweeping your chimneys and clearing your drains. They are mowing your lawns, fixing the dents in your car, cleaning your house and feeding your kids an ice cream or burger at the weekends.
They’re teaching your children French and how to play rugby, how to dance and how to sing. They’re fitting your kitchens, window shutters, blinds and doors. Do I need to go on? Quite simply, franchises are everywhere.
Franchises – hiding in plain sight
Sadly, or not, because of the way franchises are run under the ‘national brand, local owner’ policy, you’ll probably never know how many franchises you use every day and, in a way, that’s a shame, because if you did, you’d realise you’ve been a patron for many for years. Completely unaware, you’ve been supporting our industry, helping to make us the success we are today, and for that, we thank you.
A safe investment
So, what does this mean to you, someone thinking about investing in a franchise business? It means that rest assured, you are joining a well-oiled sector that has been helping ‘shopkeepers’ to build successful businesses for many years plus, we are perfectly positioned to beat the incoming AI boom.
Customer centric AI-proof businesses
One thing many franchises have in common is that they are delivering services directly to a customer, which means there is very little chance of them being wiped out by AI in the future, something we all need to consider as we enter this brave new world of automation.
The human touch
Think about it: although a pet care company might use AI to automate their walk schedule, you’d never trust anyone but a human being to come into your home and pick up your dog and take it for a walk, would you?
Whilst home care companies are using AI to monitor client’s vital signs so they can spot issues such as a fall, a computer won’t ever be coming in to deliver medication and help your elderly relative to get up in the morning, will it?
Plan for the future
I could go on, but I think you get the point. Choose wisely and while some businesses face obsoletion in the face of progress, franchises will continue to deliver their products and services directly to their customers and keep their franchise owners in business for the long term. Here’s to plain old Englishmen (and women) and their plain old franchises.
To find out what it means to be a franchisee, take our free online Prospective Franchisee Certificate here.
