Franchising and Failure in Restaurants

I am blogging today from Orlando at the annual conference of the International Franchise Association.

It seems like an ideal opportunity to write about an article in the most recent issue of the Journal of Small Business Management that looks at franchising and business failure rates.

Professors Michael and Combs find that franchise restaurants have significantly higher success rates that stand-alone independent restaurants. This seems to be due to the structures they provide and the access to key resources.

So if you are going to start a new restaurant, a franchise may be your best bet to reduce risk.