According to the Bureau of Labor Statistics, about 20 percent of all businesses in the U.S. close after the first two years of operation and a little over 38 percent after four years. However, these numbers vary greatly depending on the type of business you own. It’s generally accepted, because of their established, proven business practices, that franchises have higher success rates than independent businesses.
There’s a lot of information about the success rates of franchises, and to predict one brand will be successful while another won’t is extremely difficult. In a five-year study performed by franchise consulting firm FranNet, their results showed 92 percent of their franchise placements were still in business after two years, and 85 percent after five years.