BizSugar.com › Franchises › Three Indicators of New Franchisor Success

As an academic, I always find it gratifying when someone confirms my earlier findings with more current data.
This past June, Franchisegrade.com, a provider of information and analysis on franchise systems, did just that with a report (PDF) on new franchise systems. Specifically, they confirmed three key findings on the performance of new franchise systems that I had made in the late 1990s and early 2000s.
The Franchisegrade.com report examined 405 new franchise systems, which the analysts defined as businesses that had zero franchise outlets in 2010. While I would quibble a little with this definition of a new franchise system (which I think confounds being new [in 2010] with being unable to get much traction in the early years), the definition does capture very young franchise systems.