Let’s cut to the chase: when people ask, “What’s the failure rate for franchises?” what they’re really getting at is, “What are my chances of success?” But here’s the thing—focusing on failure rates isn’t as useful as you might think.

‍

Instead, you should be asking about success rates and the timeline to profitability for a specific franchise. That’s where the real insight lies.

‍

Let’s dig into why this shift in perspective matters.

‍

Question that's too simple

‍

Failure rates can vary widely across industries, locations, and even individual operators. A more productive approach is to focus on the success stories.

‍

What percentage of franchisees are hitting their revenue goals?

‍

How long does it typically take for owners to break even or turn a profit?

‍

These are the metrics that will help you decide whether a franchise opportunity is worth pursuing. It’s not about avoiding risk entirely—every business has risks—but about making an informed decision based on proven results.

‍

Validate using the right questions

‍

One key to understanding a franchise’s success rate is validation. This is the process of talking directly to current franchise owners.

‍

Ask owners the tough questions:

‍

• Are they meeting their financial expectations?

• How long did it take them to turn a profit?

• What challenges did they face, and how did they solve them?

• How did the franchisor support them?

• What marketing efforts did the franchisor provide to help scale their business?

• What does success look like to them?

• What was their time to break-even?

‍

Similarly, you should be asking the franchisor the same questions. This is a subtle, but important step, because you can use the two sets of answers to the same question to see if that franchisor-franchisee relationship is strong.

‍

If the answers are broadly similar, then communication and expectations aren't a worry. If the answers aren't even in the same ballpark, then you risk buying into a system that will be difficult to integrate into.

‍

Firsthand accounts from the people living it every day are far more valuable than general statistics about failure rates.

‍

Franchise support is not created equal

‍

Another critical factor is the support system a franchisor offers. Are they providing effective training, marketing assistance, and ongoing resources to help franchisees succeed?

‍

A strong franchisor doesn’t just hand you a playbook and wish you luck—they partner with you to ensure you’re maximizing your potential.

‍

If a franchisor can’t demonstrate that they’re deeply invested in their franchisees’ success, that’s a red flag.

‍

Industry matters, A LOT

‍

Ultimately, the success of a franchise isn’t just about the brand; it’s also about the industry. Some sectors are inherently more stable or lucrative than others.

‍

For example, industries like healthcare, home services, and fitness often show strong performance because they fulfill consistent and growing consumer needs.

‍

Choosing the right industry is as critical as choosing the right franchise.

‍

The path to finding it exists

‍

If you’re serious about finding a franchise opportunity with a strong success rate, we can help. We specialize in guiding potential franchise owners to industries and brands that align with their goals and financial situation.

‍

From connecting you with current franchisees for validation to analyzing industry trends, we’re here to help you make a smart, informed decision. Don’t get stuck on the failure rate—focus on building your own success story. Let’s start that journey today.