Orna Stokes, BoI’s franchise development manager, said the bank is preparing a second fund for early next year. “We will go again,” she said. “Franchising works and it makes good sense for us as a bank.”

According to Stokes, 66% of all start-up businesses fail within five years. In the franchise sector, however, she said the figure is only 10%. This is primarily due to the presence of an established business model for franchisees to work from and centralised support in relation to buying, marketing and administration.

About 300 franchisors are operating in Ireland covering about 1,500 franchisees. Bank of Ireland has provided loans to a broad range of franchisees, including O’Brien’s sandwich bars; Action International, a company that provides training to small businesses; Domino’s Pizza; Signs Express; and Quiznos, a sandwich bar.

Paul Fagan, a former banker who holds the master franchise for Action International, says his 17 franchisees have borrowed up to €100,000 each to fund their businesses. “Three of our franchisees were directly funded by Bank of Ireland, who have made a big inroad in the market,” he said.

Action International is now planning to add one new franchisee a month as it expands across the 32 counties.

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