Francorp's Philippine Franchise Findings Feel Fictitious
After a somewhat tumultuous relationship with franchising and a history of questionable business ethics, Francorp is once again using highly debatable statistics to sell the concept of franchising. As franchising continues its global march, it appears the same discredited information used in the U.S. is being employed in other countries to perhaps sway unsuspecting potential franchisees. Will the opportunistic placement of one sentence in, possibly, multiple articles make franchising a more credible concept in the minds of the Phillipine public?
In a recent study of decade-old businesses conducted by Francorp Philippines, the franchise developer reported a 92% success rate for franchised shops, in contrast to the 17% survival chance for traditional retail stores.
While not questioning the financial viability of the franchisor mentioned in the article, do these statistics accurately portray franchising's overall success? Does it take in to account whether those same "open" franchises have changed hands, perhaps multiple times, due to previous owners' financial failure? Numerous studies commissioned by and performed by U.S. Government agencies have reached a different conclusion than Francorp's study.
Between the tactics used by franchise salespeople and loan consultants, do potential franchisees stand a chance?