Survival patterns among newcomers to franchising

Article Abstract:

Two distinct methodological approaches were employed in the analysis of risk exposure of franchises in an attempt to generate more accurate results. It was revealed that retail companies which decided to purchase franchises possess better survival prospects compared to independent firms. Results further suggest that franchising is a safe means of preserving investments, since the exposure of franchises to risks are minimal. Start-up companies may also avoid the threat of closures and unprofitability by arranging franchise agreements with other companies.

Management, New business enterprises, Startups

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Franchising as an entrepreneurial venture form

Article Abstract:

Previous research studies have highlighted the assumption that franchising is exactly the opposite of entrepreneurship since the former does not regard creative abilities as one of its core aspects. Modern-day experts refuse to accept such a belief, claiming that the very fact franchisors establish their own networks is adequate evidence to conclude that franchising is an entrepreneurial act. They further argued that franchise networks have widely become a unit of entrepreneurial analysis at present.

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Franchising growth and franchisor entry and exit in the U.S. market: myth and reality

Article Abstract:

Franchising need not be considered as a solution to all difficulties by enterpreneurs, including the franchisee and the franchisor. The high rate of franchisor exits signifies that a number of companies experience failures even with franchising. Survival of the franchise is primarily dependent on the number of years the franchisor has operated the business. Franchisees need not anticipate that their franchisors could survive within the period of their contracts, which usually last for 15 years.

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