Franchising is full of numbers. But which numbers really tell the story?
If you're looking to buy a franchise, you can easily drown yourself in data. Just pick up a company's franchise disclosure document (FDD), and you'll see granular breakdowns of the brand's health. That's important stuff. Look closely!
But what does it look like to take thousands of brands' data, and track them across years? The answer: You see big-picture trends that no single brand can ever capture.
That's something Entrepreneur can uniquely do, because we collect mountains of information on thousands of franchises every year. Usually, we use that information to rank the strongest franchises in our annual Franchise 500 list (which we publish every January). But now, for the first time ever, we also crunched that data and started to look for industrywide trends-and boy, did we find them.
We took five years' worth of data, and then analyzed it in slices. What we found were some curious statistical anomalies: Failure rates change depending on how much a franchise costs to buy! Franchise fees are up in some places, down in others! Some categories are thriving, and others are coasting!
Then, we started calling up experts to ask: What's going on here? And what do franchisees need to know? On the following pages, you'll find four surprising trends-and the need-to-know explanations behind them.
TREND 1
Low-Cost Brands Have Higher Failure Rates
There's a franchise for almost every budget. Some brands can be started for only $10,000, for example, while others cost $100,000 or even $1,000,000 (and every number in between, and beyond). But Entrepreneur's research identified a curious trend: Franchise brands with lower initial investments tend to have higher termination and closure rates which is to say, franchisees of low-cost brands tend to fail more often.
Esta historia es de la edición Startups - Fall/Winter 2023 de Entrepreneur US.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor ? Conectar
Esta historia es de la edición Startups - Fall/Winter 2023 de Entrepreneur US.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
Ya eres suscriptor? Conectar
How to Succeed With Gen Z Workers
People often say that younger employees are different. But are they? We asked six business leaders what they've learned, and how their teams thrive.
There's No Perfect Answer
I worked the same job for 19 years. I hated it, but it paid the bills. Then, in 2017, I entertained an exciting but terrifying question: Could I be an entrepreneur? I wasn't sure, so I needed something that felt like a guarantee. I searched for signs that would feel like a big, clear \"yes!\" Instead, what I found was a tarot card deck.
10 HOTTEST TRENDS for 2025
Want to buy a brand that buzzes? Here's what to know.
BUILD YOUR MONEY MACHINE
A franchise isn't just a franchise. It should be a Money Machine, creating profit even while you're out of the office. Here's how.
The Top Franchises for Veterans
Are you a military vet looking to become a franchisee, or just want to support a brand that supports the troops? Check out these 150 brands.
20 LEADERS WHO ARE DEFINING ENTREPRENEURSHIP TODAY
In a year of disruption, we wanted to know: Whose work will define the years to come? We reviewed hundreds of names and picked 20 leaders across a range of industries and sizes. Meet them on the following pages, and see what it takes to thrive in 2025 and beyond.
How to Become a Main Street Millionaire
It started when I bought one little laundromat. Now I have a whole portfolio of small local businesses that bring in tens of millions in revenue a year. Here's why following my playbook could be your ticket to financial freedom-and saving America's local small businesses.
Want to Better Serve Your Clients? Become Them.
As a designer for brands, starting my own product company gave me a dose of humilityand it changed the way I relate to clients.
I've Been a Publicist for 17 Years.Don't Hire Me.
Entrepreneurs often think they need PR. Most don't. Here's why you're probably better off not hiring someone like me.
The CEO's Advice to the MVP
Kickstarter CEO Everette Taylor knows the formula for a successful launch. NBA champ Jaylen Brown recently launched a shoe and athleisure brand. They have a lot to teach each other.