Cheaper energy prices from British Gas for franchise systems

26th Sep 2016

Cheaper energy prices from British Gas for franchise systems. The economies of scale, one of the biggest advantages for franchise systems, is being offered by British Gas in the supply of gas and electricity to franchised networks.

British Gas’ prices for energy to franchisors and franchisees will be discounted in line with the buying strength of each franchisor’s network, rather than the price that each unit would pay as sole entities.

Franchisors like to be able to claim that the economies of scale they achieve for their franchisees at least match the franchise-service fees that the latter pay.

Welcoming the company as the British Franchise Association’s  (BFA) fourth brand partner, Brian Smart, the BFA director-general, said the concession reflected the growing importance of franchising in the business landscape.

“We are impressed by the commitment of British Gas to understanding the challenges facing franchise businesses and in creating solutions that offer genuine benefits to franchisors and franchisees alike,” he said. “This recognises one of the inherent advantages of becoming a franchisee and thus being part of a wider business network.”

Tom Bannister, the BFA’s head of communications, commented: “It is a massive vote of recognition for franchising and a great opportunity for our members to reduce a central cost of doing business.”

Dean Ewart, director of business markets at British Gas, said that the scheme would help franchisees to save money on their energy bills that could then be reinvested back into their businesses.

“By using the buying strength of an entire network, we are able to offer a solution which should help franchise businesses see their energy prices fall.”

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