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MarkLeonard's picture

A $500 Contest: "Franchise Research Indicates…"

I see so many articles these days related to franchising that state "research indicates…" or "statistics prove…" and yet these articles almost always fail to state the source of the research or statistics. This is important!

When an article states as a fact that "Research indicates that the vast majority of franchisees are overwhelmingly satisfied…" I want to see the source of that research. Is it a scientific study subject to peer-review? Or is it commissioned by an industry association who has polled only relatively successful franchisees? Or how about the frequent claim that investing in a franchise is far safer than owning an independent business? I want to see this scientific study that takes into account the level of churn in the ownership of franchises.

Those of us in the trenches know that the franchisor will frequently say that only x% of their locations have closed, but that this is frequently only the tip of the iceberg. How about the many franchisees who built a new location, couldn't make it profitable, and sold at a tremendous loss to a perhaps more savvy franchisee who then made the location work because they could get it at a fraction of the asset value?

Show me an independent, scientific study, subject to academic peer-review, that has used a methodology that includes the results of failed franchises, and still comes out extremely positive on the franchise model, and I'll pay you $500.


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