The Ultimate Guide to Responsible Franchising

Chapter 2Special Advice for the First-Time Entrepreneur

According to a fact sheet from September 21, 2023, on the Center for American Progress website, a Current Population Survey reports that only about 16 million Americans, or 10% of the working population, are currently self-employed, and another 10 million have side hustles, meaning they filed some form of self-employment income or loss on their taxes while at the same time reporting they had jobs (www.americanprogress.org/article/understanding-the-self-employed-in-the-united-states/).

In any given year over multiple surveys, anywhere from 40 to 60% of Americans or more hope to start a business someday. But the data shows that someday never comes. Franchisors report that out of 100 people who directly request franchise information about their brands, 1% or less move forward.

The Path of the 99%

Purely statistically speaking (and nothing personal intended), you will not make an investment in a franchise either. Yes, you will engage in the typical complaints of corporate America, such as “I’m tired of placing my future in the hands of others,” or “I do all the work and shareholders make all the money.”

You will Google different franchise opportunities, visit franchisor homepages, print out stacks of information, perhaps talk to people and professionals you trust about their opinions of certain brands or industries, and even engage in conversations with franchisors. At the time you are researching, you will feel empowered. ...