Think of Franchising Your Company?

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Article source: http://www.franchising.org/. Used with author's permission.

If you are thinking about franchising your company you might wish to know the statistics on franchisor success, it is not pretty and you need to know the risks. Franchisee Success it is a really good number there on that side of the franchising game, so buying a franchise is not as risky as franchising your current company the success of franchising companies is problematic. Franchising companies have a 5:1 failure rate, mostly due to over regulation and the litigious-ness of the franchising industry.

Here is a thought for you. If we have 400,000 franchise outlets in the US and we have 5:1 failure rate for Franchisors, then aren't we missing 2 million small business franchised outlets? Not that every business should be automatically successful mind you, but if the failure rates for franchisors are that high, we have a problem with regulators and lawyers. What recessions, all we need to do is get rid of the over regulation and lawsuits and suddenly we are recession proof next business cycle? Here is a story that illustrates what happens to first time franchisors; who go charging off:

http://ezinearticles.com/?Entrepreneurship-Story;-Over-Regulation-in-Franchising-Part-I&id=39358

http://ezinearticles.com/?Entrepreneurship-Story;-Over-Regulation-in-Franchising-Final-Chapter&id=39361

We need to be honest as a nation if we really want success in our economy, we need to address the over regulation problems in franchising and ask ourselves how we can reduce the number of lawsuits, disclosure and failures. Think on it.

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