Chapter 5. Key Franchising Policies

Successful franchising requires adopting the right policies for managing the franchise system. My research on new franchise systems shows that close to three quarters of all new franchise systems fail within ten years of their start at franchising. In a way, these dismal statistics are heartening. Many of these failures can be attributed to the adoption of inappropriate or ineffective policies, particularly policies that are inappropriate for the system's size or age.[1] Although failure rates are high, we know what franchisors are doing wrong. You can increase your business's performance at franchising by adopting the right policies for managing your franchise system.

This chapter discusses the specific policies ...

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