For many years, the debate over franchised versus independent business was haunted by what became known as The Stat: a claim repeated over and over that franchises have a success rate of 90 to 95 percent. This was often paired with another statistic that took on a life of its own: 90 percent of businesses fail within the first year.
Now, the Stat has long been discredited, and even the International Franchise Association has repeatedly asked everyone to stop using it. The 90 percent failure rate was discredited by a 2014 Bureau of Labor Statistics study that examined data from 1992 to 2011 and found that the actual first-year failure rate for businesses was roughly the same as the failure rate for other service businesses.
Still, franchised brands do have a major advantage: they are designed to be basically turnkey operations. (That’s the point of that hefty franchise fee, right?) They also come with plenty of operational advice from the franchisor’s team. The tradeoff is that royalty and mandatory advertising contribution every week or month — typically about 10 percent of revenue.
Now, what it would mean to have the best of both worlds? What if you could have expert advice on your business operations and your systems without paying a royalty on every dollar your businesses ever make?
That ideal is exactly what Mallas Financial Services operational and systems consulting services provide. Finding a consultant is easy, but do you really want to pay for generalized, generic advice applicable to nearly any business? Thanks for our specialized focus on the independent business owner, we bring the benefits of best-in-class operational expertise and systems design experience without the ongoing expense of franchise obligations.
Ready to turn your business into a world-class operations? Contact us today to learn what our consulting services can do for you.
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