What a difference a few days make! While the result of the Referendum was widely expected to be close, there is a sense that even those advocating ‘Leave’ were surprised by the result. It is far too soon to know what the outcome will be on the franchise industry and the best advice to our clients is to carry on as before.
It is true that European law is embedded in the UK legislation that affects franchising, but it would be premature in the extreme to assume that something very different will be in place anytime soon. To consider changing franchise agreements at this time, as a reaction to the result alone, would be far too early. Any legislative changes will take years to come into force and the law that applied last week still applies today.
Economic uncertainty may lead some prospective franchisees to delay their decision, but once the dust has settled and the media circus calmed down, everyone will be better placed to assess the immediate and longer term implications. At the bfa conference on the morning the Referendum result was announced the franchise teams of those Banks present confidently confirmed that as far as they were concerned, it is business as usual and that any lending proposals in the pipeline will be assessed in the same way as before.
Many franchise businesses rely on EU labour, particularly those in the food and beverage and care sectors, but again the immediate business reality is that EU workers have the right to work in the UK and any decision to the contrary will be a long time coming into force. The franchise industry is based on strong, proven business models and is therefore better placed than many to withstand whatever economic pressures and challenges the next months and years bring to bear on the UK.
If you would like to discuss any part of your franchise agreement with us, please call Jane Masih, Russell Ford or Andrew Hayward on 01753 876 800 or email firstname.lastname@example.org