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Five Important Questions the Franchise Industry Should Answer

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The franchise industry should be able to find a way to provide answers to at least five questions about franchising. Whether itís the IFA, the Census Bureau or an academic institution there is certain fundamental information that ought to be available on a regular basis.

Given the size and scope of the franchise industry I find it odd that generally certain facts regarding franchising are not regularly available. Although the U.S. Census Bureau has started to provide some important and useful data pertaining to franchise firms and franchisees it doesnít go quite far enough. Since we canít expect the Census Bureau to configure its reporting to suit a particular industry, I would take the position that this activity is the responsibility of the industry itself. Perhaps statistically sound surveys could be use to answer some of these questions.

Have you ever thought about these questions?

  1. How many new franchisors start up each year?
  2. How many franchisors stop franchising or go out of business each year? Identify top 5 causal factors for ceasing franchise operations.
  3. What is the number of new franchises sold each year ranked by numbers sold? Example, 20% of franchisors sold 12 new franchises, 10% sold 20, etc.
  4. How many franchisors have an international presence? What is the break down by major franchise sectors? Rank the top 10 countries with U.S. franchise concepts?
  5. What is the number of franchisors/franchisees by major franchise sector?

This information would be useful for those who participate in the franchise industry. Moreover, it could be useful to grow, improve and further develop franchising as a business model. Iíd like the answers to these questions, wouldnít you?

© 2011 FranchiseKnowHow, LLC

Ed Teixeira is the President of FranchiseKnowHow, LLC. He can be reached at franchiseknowhow@gmail.com

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