IS FRANCHISING THE ANSWER TO SMALL BUSINESS FAILURE RATE? AN EMPIRICAL STUDY

ABSTRACT This empirical research is an attempt to study differences in management practices and overall performance between franchised and non-franchised small firms. In all, 45 franchised firms and 50 non-franchised small firms operating in Montreal responded to a lengthy questionnaire. Results of the statistical analysis suggest that franchising may be the answer to small-business problems and failure rate. Franchise operators have better and wider management skills than non-franchised small-business owner/managers. This finding underscores the role of franchisor as a changing agent and training institution for budding entrepreneurs.