Franchise Success Rates

Joel Libava
Fri, 12 Sep 2008 09:15:00 +0000

Sean Kelly wrote a short post about the supposed 95% franchise success rate. When I started in this sector of franchising, {I was in the Automotive sector of franchising in the 90s}, I had heard about the statistic of an 80% franchise 1st year success rate, which is probably about right.

This means that if one was going to start a non-franchise start-up business vs. if one was going to start a franchise start-up business, that 80% of the folks who started up the franchise business would still be in business after the first year. Confused?

Bottom line:

If you choose the right franchise business for you, and it is a solid company, and you do the right type of research, you have a good chance of still being in business after the 1st year.

Non franchise start-ups are higher risk, for sure. But, once again, every situation is different. Statistic are important, but your statistic are even more important!

{Joel Libava is the President of Franchise Selection Specialists Inc. Cleveland, Ohio. He wrote "The Essential Steps To researching A Franchise Opportunity." Available here.}