I recently read an article in Trial Magazine entitled, "Litigating Fraud Claims for Franchisees" by lawyer Jeff Haff of Minneapolis. It is an excellent article. One of the more interesting points in that there is no validity to the claims that franchised businesses are less likely to fail than independent businesses. In fact, many franchisors stopped making this claim after the International Franchise Association (IFA), an organization compromised of mainly franchisors, issued a letter urging members not to use this sort of data to sell franchises. You should beware if a franchise salesperson still attempts to use this claim in order to sell a franchise.
Click here to see the full text of the IFA President’s letter regarding the lack of validity to claims franchised businesses are less likely to fail.