Richard Quick, Esq. salutes these franchise marketers who have the dedication and perseverance to disregard the regulations prohibiting unauthorized earnings claims, promises of success and fictional statistics. Despite the claims of the SBA and the Dept. of Commerce that they never issued statistics regarding franchise vs. independent business survival rates, despite the fact that the International Franchise Association has declared these statistics bogus, and despite the FTC prohibition against representing potential earnings other than through a prescribed format in their disclosure documents, these brave marketers have the fortitude and courage to continue lull prospective franchisees into a false sense of risk-free investing.
Cafe Ala Carte Weston, FL (Excellence in unrealistic promises & bogus franchise statistics)
Cafe Ala Carte allows you to control your own destiny… you make your own schedule and become as successful as you wish…
Franchising substantially reduces your business risk. While less than 20% of independent small business owners ever succeed, over 90% of all franchise businesses remain in operation [Source: http://www.cafealacarte.com/franchise.html 12/15/06]
1-800-DRYCARPET Santa Ana, CA (Excellence in deployment of bogus statistics)
Low Risk – The U.S. Commerce Department estimates that 95% of franchises succeed; only 25-35% of independent businesses succeed. [Source: http://www.drycarpet.com/franchise/franchise_benefits.htm, 12/15/06]
Fox’s Pizza Den Pittsbugh, PA [For Preservation of Discredited Statistics]
In fact, a recent study shows that over 62% of new businesses fail in the first six months. Compare this to just a 3% failure rate* for franchises and the advantages are clear. [Source: http://www.foxspizza.com/franchiseinfo/faq.ep.html 12/15/06]
LampPost Pizza Tustin, CA (Excellence in Bogus Statistics, Earnings Claims & Boasts)
’90% of all new restaurants fail while 95% of franchises succeed.’… a typical store owner saves 11-14% in costs… That savings to the store’s bottom line often insures [sic] success….Our success rate in product and real estate negotiations are unparalleled in the industry. [Source: http://www.lamppostpizza.com/franchfaq.htm, 12/15/06]
Gabby’s Rest. Group Toronto, ON [Excellence in Bogus Statistics, Promise of Success]
95% of franchises succeed; only 25% of independent businesses succeed…. All Gabby’s restaurants… are financially successful…. head office resources will always keep you on track for financial success… [Source: http://www.gabbys.ca/franchise.htm 12/15/06]
Gold’s Gym Irving, TX [Excellence in Pumped-Up Discredited Statistics]
According to the U.S. Department of Commerce, 90 percent of franchised operations are still operating after ten years, whereas 82 percent of independent businesses fail. This statistic solidifies the fact that aligning with a recognized leader increases the probability of success. [Source: http://www.goldsgym.com/golds/franchising/master.php 12/15/06]
Mr. Pita Sterling Heights, MI [Excellence in Bogus Statistics Preservation]
…most important, according to the U.S. Department of Commerce, [franchises] have an amazing survival rate of more than 90%, compared to less than 20% for an independent business. [Source: http://www.mrpita.net/images/Frankit.pdf 12/15/06]
Ideal Image Tampa, FL [Brilliant Use of Recombinant & Conflicting Bogus Statisti]
Small Business Administration’s records show that 90% of all private businesses eventually fail, usually within the first year! According to The United States Department of Commerce, more than 95% of the nation’s franchises succeed!
AND
…independent businesses experience a failure rate of over 75% within the first five years in business, whereas a franchised business has less than a 10% failure rate, according to the U.S. Department of Commerce. [Source: http://www.idealimage.com/laserfranchise/opportunities.php 12/15/06]
Castus Low-Carb Superstores San Ramon, CA (Excellence in Low-Truth Marketing)
80 percent of all new small business fail, many within the first year. By contrast, less than 2 percent of new franchises are discontinuted over a three year period. [Source: http://www.castus.net/qa.htm 12/15/06]
Lamar’s Donuts Centennial, Colorado (Excellence in Bogus Statistics)
Estimates of failure rates among new non-franchised businesses range from 60% to 90%. But franchised businesses boast a 95% success rate; that is, in any given year, fewer than 5% of all franchised outlets close – and many of those do so for reasons other than business failure. [Source: http://www.lamars.com/franchise/fr_info.html 12/15/06]
Mecca Fitness Calgary, CA [Keeping Bogus Statistics Active & Healthy]
According to the U.S. Department of Commerce, 90 percent of franchised operations are still operating after ten years, whereas 82 percent of independent businesses fail. This statistic solidifies the fact that aligning with a recognized leader increases the probability of success. [Source: http://www.meccafitness.com/franchise.asp 12/15/06]
OrbitDrop Dallas, TX (Excellence in Dropping Bogus Statistics & Nonsense Words)
Statistics show that 95% of franchisees succeed while 80% of independent businesses fail. Why?… The franchisor has worked out all of the bugs and lugs and kinks and stinks — so you don’t have to. [Source: http://www.orbitdrop.com/franchise_faq.php 12/15/06]
Miracles Fitness Rio Grande, New Jersey (Perpetuation of Bogus Statistics)
According to the United States Department of Commerce, 90% of franchise businesses are still operating after 10 years, but 82% of independent businesses fail. [Source: http://www.miraclesfitness.com/why_buy_a_franchise.htm 12/16/06]
Young Rembrandts
For making it clear that all franchisors are, by definition, successful:
A franchisor is a successful company or person who leases the rights to their business name, brand, strategy, product, or system…
How Profitable is a Franchise?… Return on investment in a franchise system tends to be quicker and more profitable than a new business start-up. There is significant reduction of risk because of brand name/system recognition, corporate oversight, quality assurance, and a proven path to financial gain… [Source: http://www.youngrembrandts.com/franchise_why.htm 12/16/06]
Shape Xpress Tulsa, OK (Excellence in Promoting Multiple Falsehoods)
Studies show that 90% of franchise business are still operating after 10 years, whereas 82% of independent businesses have failed….
More than 60% of all franchisers have been in business at least a dozen years. Industry statistics show that the franchise failure rate is 2.1% in the first year, compared to approximately 80% of all new independent businesses. [Source: http://www.shapexpress.com/buy_franchise.aspx 12/16/06]
Val-Pak / Cox Target Media Largo, FL (Excellence in Bogus Franchise Statistics)
Franchises have a 90% survival rate after 10 years, while other forms of independent business have only an 18% survival rate. [Source: http://www.valpak.com/vpcol/franchise.do?page=franchise4U 12/16/06]
Computer Medics of America Palmer, Alaska (Earnings claims & Bogus Statistics!)
As a Computer Medics of America®, Inc. Franchise owner you can potentially make anywhere from $30,000 to $100,000 or more per year. A typical day is 1-4 appointments at 1-2 hours per appointment at $40-$95 per hour.
* More than 60% of independent businesses fail while 95% of Franchises succeed – U.S. Dept Of CommerceNational statistics show that Franchising is a much lower risk compared to an independent business (U.S. Statistics):* A study by Arthur Anderson and Company of 366 Franchise companies in 60 industries reported that nearly 86% of all Franchise operations opened were still under the same ownership after 5 years. Only 3% of these Franchises were no longer in business.
* In contrast, a study by the U.S. Small Business Administration revealed that 62.2% of all new businesses were dissolved within the first six years of their operation, due to failure, bankruptcy, retirement or other reasons. [Source: http://www.computermedicsofamerica.com/franchise3.htm 12/16/06]
Per the U.S. Department of Commerce, since 1971 less than 5% of franchises have failed. Per the U.S. Small Business Administration, the small business failure rate is 65% in five years. [Source: http://www.drycleaningstation.com/franchise.html/faqs 12/16/06]
• The U.S. Department Of Commerce states that 90% of franchises are still in operation after 10 years, compared to just 18% for other forms of small business.
• A 1999 study by the U.S. Chamber Of Commerce found that 86% of franchises opened within the last 5 years were still under the same ownership and that 97% of them were still open for business.
• A U.S. Department Of Commerce study conducted from 1971 to 1997 showed that during that time, less than 5% of franchised businesses were closed each year.
• In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year. [Source: http://www.topdogdaycare.com/franchise3.html 12/16/06]
100% SUCCESS RATE… WE WILL DEVELOP AND BUILD YOUR TRAVEL AGENCY BUSINESS AND THEN SELL YOUR EQUITY TO OUR PRE-QUALIFIED INVESTORS
Our franchised agencies are strategic assets with a sales price multiple of 3 to 5 times net income and makes a perfect investment for your future goals.Statistics show that 90% of franchise owners succeed in their businesses. So even though it does not guarantee success, statistics reveal that fewer than 10% of new franchise businesses fail. [Source: http://www.travellinesexpress.com/franchisefacts.htm 12/16/06]
Success rates of franchised businesses after 5 years are generally in the 90% range whereas small independent startups fail almost 50% of the time over 5 years. [Source: http://www.glamoursecrets.com/franchising.html 12/16/06]
While independently owned start-up businesses have only a 5% success rate, franchising success can be as high as 95%. [Source: http://www.lapelsdrycleaning.com/ 12/16/06]89% – 97% of all franchise operations are still in business 5 years after they open. Yet, 65% of independent business ventures fail in the first 5 years. [Source: http://www.lapelsdrycleaning.com/advantages-of-franchising.htm 12/16/06]
“The success rate for franchise-owned businesses is significantly better than the success rate for many independent businesses.”… It has been said that a large percentage of independent startup businesses have failed in less than 5 years whereas most franchise startups are still in business after 5 years. [Source: http://garlicjims.com/franchise.asp 12/16/06]
…eighty percent (80%) of all new small businesses fail, many within the first year, while by contrast less than two percent (2%) of new franchises are discontinued over a three year period. [Source: http://www.jroses.com/index.php?ID=20 12/16/06]
According to the Department of Commerce statistics almost 70% of all “independent” businesses fail within the first five years. Franchises have nearly a 95% annual success rate. [Source: http://www.candyexpress.com/HTML/usfranchise.html 12/16/06]
MaidPro Corporation Boston, MA (Excellence in Preservation of Disproven Statistics)
In fact, over the course of one year, franchises have reported a success rate of 95 percent in contrast to the more than 50 percent failure rate of new, independently owned businesses. [Source: http://www.maidpro.com/maidservice-franchises/benefits-of-franchising/ 12/16/06]
Anytime Fitness Hastings, MN (Excellence is Keeping Bogus Statistics Healthy)
According to franchising facts, franchises have a success rate two and a half times greater than independent, non-franchise businesses. In fact, 95% of all franchises operate past their first year where less then 35% of independent businesses make it… [Source: http://www.anytimefitness.com/opportunity/why.aspx 12/16/06]
|
Number of Years in Business |
Franchise versus Independent |
|
| After 1st Year in Business |
97% |
62% |
| After 5th Year in Business | 92% | 23% |
| After 10th Year in Business | 90% | 18% |
[Source: http://www.petsareinn.com/qa.htm 12/16/06)
Proven Success... 90% of franchised businesses are still operating after 10 years while 82% of independent businesses have failed...38% of independent businesses fail in the first year while less than 5% of franchised businesses fail in the first year [Source: http://www.butterflylife.com/pages/f_whypurchase.html 12/16/06]
Government research indicates that 80 percent of all new small businesses fail, many within the first year. By contrast, less than 2 percent of new franchises are discontinued within three years of operation. [Source: http://www.hobbytown.com/content/show/3024 12/16/06]
FunFlicks Baldwin, MD [Preservation of Bogus Franchise Statistics]
According to the U.S. Department of Commerce, franchise businesses are exponentially more likely to succeed than individual new start-ups…According to Department of Commerce figures, after seven years 91% of new franchises are still in business, as compared to only 20% of individual new start-up businesses. [Source: http://www.funflicks.com/franchise.html 12/16/06]
Printwear Xpress Green Bay, WI (Promulgation of Xpressly Bogus Franchise Statistics)
According to franchising facts, franchises have a success rate of two and a half times greater vs. independent non-franchising businesses. In fact, 95% of all franchises operate past their first year where less then 35% of independent businesses make it. [Source: http://www.printwearxpress.com/why_franchise.php]
Businesses that franchise have an 80% greater success rate than businesses in the same industry that don’t franchise. [Source: http://www.colbertballtax.com/franchiseIndex.php 12/16/06]
