You have a dream of owning your own business.

You know you’ll work hard, yet you’re still concerned about failing.

You’re not alone. If there were a way to increase your odds of success, would you take it?

Many prospective entrepreneurs are attracted to franchising because of its proven systems and higher survival rates.

The Numbers:

Franchises have a five-year survival rate of 85–96%, which is considerably higher than the 49.2% for independent businesses.

Source: International Franchise Association (IFA) and U.S. Bureau of Labor Statistics.

These numbers are compelling, but what causes franchise failures?

Common Causes of Franchise Failure

Poor Fit Between Owner and Franchise

Success depends on alignment with the franchise’s culture, business model, and operational style. A lack of belief in the product or service, discomfort with the required technology, or misalignment with brand values can all undermine success.

Poor Sales Performance

No business can survive without sufficient sales. Franchise owners must be proactive about generating revenue, either by being comfortable with sales themselves or by hiring skilled salespeople.

Not Following the Franchise System

Franchises succeed by leveraging proven systems and processes. Owners who deviate from these established methods often struggle to achieve desired results.

Waiting Too Long to Use the Dedicated Business Coach

A franchise business coach is there to help you succeed, from understanding how to implement the business model to spotting opportunities and reviewing sales and customer retention strategies. Waiting until your business needs saving is not the time to call them.

Rewards of Franchise Ownership

While risks exist, franchise ownership also offers significant rewards:

Proven Business Model

Franchisees receive a tested business model that reduces the guesswork and risk of starting from scratch. Don’t overlook the value of having a configured and optimized website, estimating tools, financial packages, and more.

Brand Recognition

You benefit not only from established brand awareness and customer trust but also from marketing materials that have been tested and show strong customer engagement.

Training and Support

As the saying goes, “You’re in business for yourself, but not by yourself.” Franchisors provide initial training, ongoing support, and marketing resources. You also have a network of other franchise owners to rely on for encouragement and sharing best practices.

Higher Survival Rates

As shown above, franchises generally outperform independent startups in long-term survival.

Pro Tips

Know What You Want:

Work with a franchise consultant to define your business model requirements.

Evaluate Those That Fit:

A franchise consultant will help you identify franchises that match your business model, skills, values, and interests.

Commit to the System:

Follow the franchisor’s processes and leverage their support network.

Focus on Sales:

Prioritize revenue-generating activities from day one.

Frequently Asked Questions

What support do franchisors offer if I struggle?

Most franchisors provide additional training, marketing support, and operational guidance to help struggling franchisees get back on track.

Can I make changes to the franchise system?

Franchisors require owners to follow their proven systems to ensure brand consistency and quality across all locations. However, as the boots on the ground, your insights and suggestions are valuable. Most franchisors welcome constructive feedback from franchisees and may consider implementing new ideas that benefit the entire system. Open communication with your franchisor can help ensure your voice is heard.

How do I know if a franchise is a good fit for me?

Evaluate your interests, skills, and goals. Speak with existing franchisees and review the Franchise Disclosure Document (FDD) to understand expectations and requirements.

Franchise ownership can offer a pathway to business success, but it’s not foolproof. Understanding both the risks and rewards—and your own fit for the franchise model—will help you make the best possible decision.

Ready to Find Your Perfect Franchise Match?

Working with an experienced franchise consultant can help you clarify your goals, strengths, and preferences. I’ll guide you through the process, introduce you to franchise concepts that truly align with your values and lifestyle, and support you every step of the way. Let’s work together to discover the franchise opportunity that’s the best fit for you, so you can invest with confidence and excitement.

Disclaimer:

Franchise ownership involves risks, and individual results may vary. It is important to conduct thorough research, carefully review all franchise disclosure documents, and consult with legal and financial advisors before making any investment decisions.