Here’s The New Bad News About Franchises

Oct 15, 2014

The notion that franchises are a guaranteed path to success should already have been put to rest. Success rates aren't measurably bigger than other types of startup businesses.

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Between 2010 and 2013 in the U.S., 135,289 new franchise outlets opened. At the same time:

• 58,104 ceased operations
• 40,113 were terminated by the franchisors
• owners of 11,997 decided not to renew
• 8,431 were reacquired by the franchisors

Out of those 135,289 additions, only actual gain was only 16,644 net units.
http://www.inc.com/erik-sherman/here-s-the-new-bad-news-about-franchises.html