Entrepreneur

What Is the Real Survival Rate of Franchised Businesses?

It's known as 'The Stat,' and it's been misleading prospective franchisees for years, indicating wildly high rates of success. Why is it so hard to come up with accurate figures for the survival rate of franchised businesses?
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Imagine you're thinking of leaving your job to open a business and decide to do a little research into franchising. A Google search may lead to an evenly balanced sermon on the pros and cons of franchise ownership. Or you may land on this gem from About.com: "Some studies show that franchises have a success rate of approximately 90 percent as compared to only about 15 percent for businesses that are started from the ground up. The increased probability of success usually far outweighs any initial franchise fee and nominal royalties that are paid monthly."

Most experienced franchisees would laugh themselves hoarse after reading that statement. But what about a novice entrepreneur who is considering going it alone? That's the type of thing that might get their heart set on franchising.

Dig a little deeper and you'll find that About.com is not alone in espousing such numbers. That

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