Starting a small business can be a challenging and risky venture. However, franchising offers a unique opportunity for entrepreneurs to increase their chances of success. According to a study by the Small Business Administration, franchise businesses have a higher survival rate than independently-owned small businesses, with 80% of franchise businesses still in operation after five years, compared to only 17% of non-franchised businesses.
This is a significant difference and highlights the benefits of franchising as a business model. One of the main advantages of franchising is the support and resources provided by the franchisor. Franchisees have access to a proven business model, training, and ongoing support, which can greatly increase their chances of success.
Franchise businesses also benefit from the established brand and reputation of the franchisor. This can make it easier to attract customers and generate revenue. Additionally, many franchisors have established relationships with suppliers and vendors, which can help franchisees save on costs.
Another advantage of franchising is that it allows individuals to start their own business while minimizing the risks associated with starting a new venture. Franchisees have access to the franchisor's expertise and resources, which can help them navigate the challenges of starting and growing a business.
It's important to note that the study only shows an average survival rate and not all franchise businesses have a higher survival rate than non-franchised businesses. However, it's important for potential franchisees to conduct research on the specific franchise they are considering before making a decision.
In conclusion, a study by the Small Business Administration shows that franchise businesses have a higher survival rate than independently-owned small businesses, with 80% of franchise businesses still in operation after five years, compared to only 17% of non-franchised businesses. It's important for potential franchisees to be aware of this survival rate and to conduct research on the specific franchise they are considering before making a decision.