New HSBC fund offers a huge boost for future franchisees

Granite & TREND Transformations is a home renovation business like no other. With a bespoke product that combines a unique quality with a luxury feel, there’s a reason why our business is growing from strength to strength.

Granite & TREND Transformations

In the UK
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In a landmark move set to help those interested in joining top franchises like Granite & TREND Transformations, HSBC announces new measures to help you finance that career change you have been waiting for.

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As the bank described in its press release earlier this week:

HSBC UK has today launched its first ever £500 million fund for franchise businesses as part of its commitment to help British businesses innovate and grow as the country looks to rebound from the Covid-19 health crisis. The fund is part of a broader £15 billion lending fund to support small and medium-sized enterprises (SMEs) across the UK.

Franchising numbers are at a record high in the UK, driven by the rise in younger people wishing to run their own businesses and by existing franchisees expanding across sectors, from major food brands and coffee bars, healthcare and phone shops. Franchising has hit record numbers, employing over 700,000 people and contributing an estimated £17bn to the UK economy according to the British Franchise Association (bfa).

Despite the challenging economic environment, 62% of UK businesses intend to increase investment in their business in the next year, according to research from HSBC, with the focus on four fundamental areas of their business in 2021; employee well-being, customer experience, cash flow/capital management and security.

Almost three quarters (71%) of UK businesses expect to have returned to pre-pandemic levels of profitability by the end of 2022 and a fifth by the end of this year and nearly half of British companies (49%) are projecting sales growth.

With UK businesses looking at how they can expand, franchising is the third option to consider alongside organic growth and acquisition. While it requires training and supporting franchisees, it is capital-efficient and lower-risk compared to other methods. For franchisees, the model offers a more accessible way of starting a business, using a tried and tested concept.

Our dedicated franchise team provides specialist knowledge and support focusing entirely on the industry. Franchisees benefit from a central helpdesk, offering advice and liaison with local banking managers. Funding of up to 70% of start-up costs is available for franchisees joining an established network.

Andy Brattesani, Head of Franchise, HSBC UK said: “2020 was a difficult year for businesses, with almost every sector impacted. Franchising is a great route towards expansion for an established, successful business looking to grow. Franchising hasn’t got the exposure it deserves, opportunities in franchising are varied. Our £500 million fund will help businesses to develop, grow and drive investment.

“We know our customers are innovating and adapting at pace and British businesses tell us that through these uncertain times they need their bank to be flexible, provide funding when they need it most and to support future growth opportunities and that is exactly what the Fund intends to achieve.”

Pip Wilkins, CEO, British Franchise Association said: “Through every economic downturn franchising has continued to hold a solid share in the market. We have seen networks unite and use collective resources to survive impacts of the Pandemic, many are now stronger businesses as a result! However, the industry would not be where it is today without the funding institutions such as HSBC UK. The £500m SME fund for franchise businesses is a significant investment that will unlock the potential for thousands of people to grow in this diverse industry.”

This news has been particularly welcome here at the Granite & TREND Transformations franchise, as our business has bucked the trend over the last year and actually seen a significant year-on-year increase in sales. This has led to an increased interest from prospective franchisees who are keen to take up the opportunity our business model offers to tap into the lucrative kitchen and bathroom home improvement market.

In the last six months alone, we have signed 5 new franchisees with the help of HSBC business loans and look forward to the increased support for our future franchisees that this new fund offers.

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