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Log In / Register | Dec 22, 2014

U.S. Franchise Unit Turnover Rate Is 122 Percent

A shuttered Cold Stone Creamery franchise
A shuttered Cold Stone Creamery franchise. Photo/bmm

WASHINGTON – New research shows that the turnover rate for franchise outlets in the United States over the last four years from the beginning of 2010 to the end of 2013 is 122 percent, with more leaving than opening. The good news for the industry is that franchise outlets have grown at a pace just shy of one percent a year since 2010, according to disclosure filings.

A Rescue Plan for Troubled Franchises

The Small Business Administration recently provided Blue MauMau with its newest list of failure rates of small business loans sorted by franchise brands from October 1, 2001 until September 30, 2011.

Worst 25 Franchises to Buy with the Highest Failure Rates, 2012

A shuttered Quiznos shop
A shuttered Quiznos sub shop in Kentucky

LEXINGTON, Ky. — Blue MauMau dares say what other publications won't. Here is our annual listing of major franchise lemons to avoid investing in. It's hard to believe but there are 23 major brands in 2012, where franchised stores actually fail worse than Quiznos. Ice cream shops have not done well.

Are Franchises Commercial Marriages from Heaven or Hell?

Heaven or hell?SYDNEY, Australia — Since it flourished in the early 1970s under the influence of American fast food outlets such as McDonald's and KFC, franchising has become one of the most dynamic aspects of Australia's small business sector.

SBA: Franchises and independent small business loan risk compared


Source: SBA, bad loan failures that must be charged off from 2000-2010

25 Worst Franchises to Buy, 2011

A just shuttered Quiznos franchise among many in Kentucky
The scattered remains of a Quiznos franchise in Kentucky. photo/bmm

LEXINGTON, Ky. — Some of the perennial worst franchises to buy — hoagie sandwich shops, ice cream stops, and auto repair garages — dominate this year's list. The recession has only helped their failure rates climb.

Timothy Bates: Firms Started As Franchises Have Lower Survival Rates Than Independent Small Business Startups

Attached below is the paper of Wayne State University's Timothy Bates, professor of economics.