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The future of franchising could be in jeopardy due to a widespread ignorance of what a franchise is or how it operates, according to the managing director of a leading franchise.

Rik Hellewell, managing director of professional oven valeting franchise Ovenu is reacting to the results of a survey that shows a third of respondents have very little idea of what a franchise actually is, while half of those that do still can’t offer a simple explanation of how franchises work. Additionally, awareness of franchise brands is low in all sectors except fast food.

Hellewell has written an open letter to the British Franchise Association, warning of ‘a grim picture of the future of the industry’ in which rising recruitment costs translate into higher start-up fees for franchisees.

He proposes the BFA liaise more with the media to create awareness of the benefits of franchising and also respond to the survey’s findings that people are four times more likely to search for franchise information online than through any other media.

’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,’ says Hellewell.

’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,’ he concludes.

If you are one of those not sure what a franchise is, click here for a comprehensive explanation.

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