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9 Riskiest Franchise Industries

Low Cost to Entry Has Higher Risks

Writer's note: Hard facts are better than old industry myths any day. But meaningful figures are not easy to find in the industry. So kudos to BusinessWeek's correspondent Douglas MacMillan and his use of FranData's collected figures to courageously publish what industries are the riskiest, or those that have the highest store cancellations. compiled a list of the franchise industries that experienced the highest percentage of canceled units in 2006, using data provided by Arlington (Va.) industry researcher FRANdata.

Slideshow of the 9 Riskiest Franchise Industries

And here are the top 5 riskiest industries to start a franchise in:

  1. Publications, with 7% of agreements cancelled
  2. Education, with 6.3% of agreements cancelled
  3. Computer Products and Services, 5.8% agreements cancelled
  4. Frozen Desserts, 5.4% cancelled
  5. Personnel Services, 4.8% of unit agreements cancelled
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Don Sniegowski is editor of Blue MauMau, the daily news journal for franchise & small business owners. Contact him at +1 (270) 321-1268, @bluemaumau or