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).
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.
Katie Clunn, Jiggy Wrigglers, MD said: “ Franchise enquires are flying through the door, it’s great to see that confidence is returning. Financial initiatives will really help support new franchise owners on their business journey. This is fantastic news for our industry. Thank you and Well done HSBC!”
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.”