Are franchises more likely to succeed than entrepreneurial startups or other business models? It depends on whom you ask. The Franchise Fraud author Robert Purvin says a franchise is "not a script for success." Consultant Joel Libava says, "a lot of things have to line up... [but] if they do, a franchisee has a better chance of success than an independent startup."
The stats are most difficult to track. Depending on the data, we've unearthed rates from as low as 50 percent to as high as 95 percent on the five-year survival of a franchise. When compared with all new business startups in the same report, though, franchises seem to perform better.
It's always about the timing and the market. Beyond the what... it's the where and when that seems to matter most.
Even the most fun franchises out there are serious business. Not just clowning around.