Speaking of tall tales, have you heard the one about the United States Department of Commerce reporting that franchises have a success rate of 95%, while non-franchised business start-ups have a failure rate above 90%.
It must be true, right? After all, this statistic (or a variation of it) appears on over 100 franchise sites, including websites of franchisors, organizations, publications, and franchise brokers. It’s a shame that the U.S. Department of Commerce never issued those statistics, and never tracked failure rates of independents vs. franchise chains.
Read the truth at Lies, Damn Lies & Franchise Statistics and watch for future articles on the Jackalope, the Hodag, Bigfoot, the honest franchise salesman and other improbable creatures.
Relentless marketer Sean Kelly is a 20 year veteran of the franchise industry, and founder of the award-winning marketing firm IdeaFarm. In 2006, he founded the FranBest franchise network, which features best franchise opportunities, the top new franchises, franchise marketing, franchise public relations and small business marketing. Contact him at seankelly[at]ideafarm.net.