It riled me so much that I fired off an email questioning the credibility of the sources (franchise banker, British Franchise Association, consultant/salesman, etc.).
Perpetuating the falsehood (franchises survive longer and are more profitable than independent businesses) is dangerous. This specific misrepresentation was exploded due to the academic work of Timothy Bates and Scott Shane some 10 years ago. No credible scholar would make these statements.
Bob Purvin’s recently re-issued book The Franchise Fraud [Amazon reviews] directly addresses this distortion also.
There probably is no specific quality franchise research having to do with U.K. franchisee survivability. There isn’t any in Canada, Oz or New Zealand either. The only work credible work is from the U.S. but that’s okay: That is where franchising is created and exported.
I promised to report back if the deputy editor, Adam Aiken, contacted me. This is my sixth email I have sent to other UK business media asking them to stop simply re-typing the franchise industry’s always rosy media releases. All of the these have been ignored
To Adam’s credit, he actually wrote back and this is what he emailed me:
Thanks for this, Les.
I’ll include some of your comments on our new business blog and provide a link to your blog, if you’re interested . . .
I accepted his offer and thanked him as any polite Canadian would do in the situation.
Title courtesy of Franklin Delano Roosevelt.