Franchise Fiascos and How to Avoid Them

Wednesday, December 2, 2009

Franchise Fiascos and How to Avoid Them

No doubt about it, franchises are seen as a far less risky business opportunity than the typical ad hoc start up - but just exactly does "far less risky" really mean? Not much, it turns out, as the articles below spell out in excruciating detail.

Top 15 Franchise Failures
by Katie Adams, Friday, October 30, 2009

"The recession has hit franchise owners particularly hard, with the Small Business Administration (SBA) reporting record loan default rates for 2008-2009... Sorting through the 2009 Franchise Coleman Report we were able to determine the franchises that had the highest SBA loan failure rates in 2008."

Read more:
http://antipaper.wordpress.com/2009/11/02/investopediayahoo-finance-top-15-franchise-failures/
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Five Reasons Why Franchises Fail - Franchise Failure Rates

Posted by GlobalBX Staff on 07/27/09

"For people who want to open a business they can call their own, the option of buying a franchise is clearly one of the best possible routes to take. Franchises offer instant brand recognition, a proven operating system developed over many years, and plenty of corporate support. But not everything is flowers and puppy dogs in the franchise world. There is always the prospect of a franchise failure, and the smart entrepreneur should always look at the down side when contemplating any sort business investment."

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How to Avoid Purchasing a Franchise that Might Fail

By Don Daszkowski, About.com

"Although data demonstrates that there is a better chance of success for new business owners if they begin as a franchisee rather than starting a new business from scratch, there are still some factors to take into consideration before deciding which franchise to invest in."

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Truth is, there is no easy way to go into business!

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Wednesday, December 2, 2009