RBS launches £100m fund for franchisees
THE Royal Bank of Scotland has launched a £100m fund to support franchisees.
The bank said the pot of cash could support up to 1,800 businesses and create 24,000 jobs.
It based its figures on the average franchise start-up costs of £55,000 and the fact franchised businesses typically employ 13 staff. RBS is promising discounted fees and two years of free banking to successful loan applicants.
Tony Kelly, managing director of the North West office of RBS’ NatWest commercial banking, said: “Everybody wants to see banks funding business growth, as well as helping new businesses get off the ground to create jobs – this is exactly what this fund will deliver.
“The industry has shown itself to be virtually recession-proof, so for the many people left out of work by the recession franchising is a great way to start up a business – plus they get the support of a big brand behind them.”
According to figures from the British Franchise Association (BFA) the industry’s turnover increased 3.4% to £11.8bn in 2009. In the North West the industry’s turnover has reached £1.3bn and 11% of all UK franchises are based in the region.
Among the franchisees already supported by NatWest are Mark and Simon Ledwick, pictured, who have 12 Subway sandwich shops across the North West.
