What is the failure / success rate of franchises across all brands?

AVERAGE FAILURE SUCCESS RATE OF FRANCHISE BRANDS

There are around 1200-1300 Franchise brands in Australia. That includes the BIG Brand Names such as Australia Post, Pillow Talk, McDonald's, Subways you name. That includes all the international brands, the retail brands, the food brands and even hundreds of franchise brands you would have never heard of. It also includes brand newly registered franchise concepts that don't even have 5 branches or 5x franchisees yet. And there are alot of those!

STRICTLY SPEAKING - AVERAGES

In business the statistics are frightening. It has been said that ON AVERAGE 80% of businesses fail in their first 12 months.

Of those remaining 20% that make it past their first birthday; 90% of those won't be around for their 5th birthday.

In franchising however, across all brands (including the good concepts and 'not so good' concepts) the average success rate is 80%. (Instead of 20% compared to non-franchise business start ups).

This is good news for you!

If you are considering a franchise purchase.

Why does Franchising have a much higher likelihood of success for new business start ups?

Franchises are very successful for a reason. You generally have a tonne of support behind you. You have someone who has an invested interested in whether you succeed or not and in many cases you also have some that likes like some kind of "guiding angel" that might stop you in your tracks and say "Hey, maybe you shouldn't be getting into business!", "Maybe you're under capitalised and you should wait", "Maybe this type of industry is not for you" etc. It's no wonder why the WHOLE CONCEPT of FRANCHISING is a a successful way for people to enter into business for themselves for the first time. Many franchise concepts have made franchisees a lot of money. Many franchisees in many different franchise concepts have even become millionaires. If you want to know what franchise concepts have created millionaires check out the top 10 Aussie Franchises to get into. Whilst there is no guarantees that you'll become a millionaire yourself (or even succeed) it's a good starting point to get involved with a concept where you can rub shoulders with other successful franchise operators.

PLUS! Besides the support there are a myriad of other reasons:

A proven concept;
Marketing experience;
In some cases, an existing client database (existing terrioty sale e.g);
Mistakes and Hard Lessons have already been learnt with matured business models;
A range of differing personalities & demographics have tested the concept across multiple zones/territories;
The leverage of larger-scale marketing penetration - ie your small business may not be able to afford radio, TV or high-end video productions until it is matured / 5 years;
Training, staffing & Recruiting experience
Fully Manualised processes and operating procedures to increase efficiencies and focus on core activities of the business to generate desired outcomes