Franchise Stories: The Good, the Bad and the Ugly

June 04, 2025

by a professional from University of Pennsylvania - The Wharton School in Austin, TX, USA

I joined SearchFunder back in the fall to learn more about this space to develop revenue based data/analytics tools to help with searchers trying to find the best business for them. But as I've been learning more about this overall space, I've found that the overlapping area of Franchises seems to be one in more desperate need of solutions. Lots of stories so far from franchisees or prospective franchisees feeling misled on the financial viability of their new business. Despite Item 19 requiring various financial disclosures, that information is either (a) too little (b) questionably accurate. So wanted to reach out to the community to gather more stories about your experiences in this space, the good, the bad and especially the ugly. My hope is I can refine my current offering to better tackle exactly the challenges new franchisees or franchise purchasers face.

Reply by a searcher
in Denver, CO, USA

Hey Christopher - I have reviewed a ton of FDD's at this point. Happy to connect and share my experiences if it's valuable - feel free to DM!

Reply by an intermediary
from Southern Methodist University in Fort Lauderdale, FL, USA

Plusses and minuses like anything. Plus, franchises have a much better 10-year success rate than non-franchise businesses. Overall, they are much more proven concepts where franchisees gain access to a vetted concept, known brand, back-office support (marketing, branding, accounting, staffing, software, technology, best practices, etc...). Plus, you have a network of other owners to collaborate with. Downside is you essentially have a partner and rely to a degree on a franchisor. They need to hold up their end of the bargain for you to be successful. Read carefully and choose wisely. Pro tip: understand that State Franchise laws supercede franchise agreements and are often way more favorable when it comes to your rights. Know these laws and which State you work. Franchisees who are ignorant to these laws are much more likely to be pushed around. Have a franchise lawyer on speed dial as you may need them someday. Good luck!

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