Finding the best franchise fit
Sunday, October 2, 2011
Mark Spriggs, associate professor and chairman of the entrepreneurship department at the University of St. Thomas' Opus College of Business, said the chance of success is "vastly greater" with a franchise than with an independent business. Roughly 80 percent of franchises survive five years in business, he said, while only 20 percent of independents are around that long.
"People will argue over the percentages, but it's two to three times more likely to succeed than the independent businesses," said Spriggs, who teaches an undergraduate class on franchises.
Spriggs said he's referred a number of acquaintances to franchise referral consultants, who typically research both franchisors and prospective franchisees to find good candidates on each side. "Their sweet spot is targeting guys with exit packages, 401(k)s, the guys leaving corporate America," he said.
Originally published: 10/02/2011, Star Tribune