I read some interesting facts recently about business success rates, the article announced that some 90% of new franchises succeeded, and although there are varying measures on the success rates of other start ups, the rate is nowhere near as high as this.
So what makes the franchise model that much more successful than any other business model?
Well clearly, because it is a franchise, the business concept has been tested and proven successfully.
Franchisees have the benefit of operating a model that others have used and have a backup (in their franchisor) that they can go to for advice and support.
The downside of a franchise is that you are likely to have to pay a royalty fee or give a share of your profits to the franchisor, but this is often seen as a small price to pay to run a successful business of your own.
Finally and probably most importantly given the current credit crisis, statistics show that you are much more likely to get bank finance to start a franchise than you are any other type of business.
The British Franchise Association regulates its members, their website contains a host of useful information on franchising as well as a list of its members and the businesses they cover, the link is below.
So if you’ve not considered franchising as a route to running your own business, maybe now is the time to start?