Quote:
Originally Posted by KristineS
I've been doing a lot of reading about this subject, since one of our companies sells supplies to commercial embroiderers. It seems that a lot of embroidery franchises are promising their franchisees that owning a franchise will guarantee success. While it's true a franchise may give you name recognition and provide some training, it is ultimately up to the business owner to make a success or failure of the business.
I've always believed that. What do the rest of you think?
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In my experience having a franchise is no guarantee. Failing in business is just as easy with a franchise as without one. As a franchisee I experienced being on the verge of bankruptcy and the franchise offered no protection. I've also coached franchisees back to profitability who were right on the verge of failure.
Many franchises can claim very high success rates (or low failure rates) because they hold the master lease to each store. If an individual owner fails, the company takes over and continues to run the store, so it "technically" never closes. I believe, and more statistics continue to verify, that failure rates among traditional businesses and franchises are virtually the same.