Franchise Owners

While some experts say that the success rate of franchises is very high and a great deal of money can be made with a franchise unit, others say franchising isn't as successful as starting an independent business. According to the U.S. Department of Commerce, less than 5 percent of franchised outlets have failed each year since 1971. However, when reporting figures, franchisers don't always consider a unit as failing if it is under different ownership, but still in operation. The employment outlook will depend on factors such as the economy—a downturn in the economy is always most difficult for new businesses—as well as the type of franchise. Overall, though, growth should be steady and about as fast as the average. Personal services and quick service franchise restaurants are expected to experience higher growth than other types of franchises, according to the International Franchise Association's 2024 Franchising Economic Outlook.