This is my first blog post on Franchise Notes!

Driving from Lexington, Kentucky to Boca Raton, Florida this weekend I could not help but consider the profound impact franchising has on our economy. Every billboard and exit ramp sign seemed to display the name and/or logo of a franchise system.

I have read statistics, primarily from the International Franchise Association (IFA), regarding the lower failure rate of franchised businesses versus independent businesses. I wonder if there are any studies to determine if the disparity in failure rates increases or dcreases during a recession. My intuition tells me that a franchise system will fare even better during a recession than independent businesses. Presumably, the franchised business has better systems in place to weather the economic storm. And the franchise system has a franchisor and a group of franchisees that can collaborate on methods to reduce costs and increase revenues. On the other hand, an independent business may have more flexibility on how to adapt to the changing economic environment.

Does anyone have any thoughts on this issue?

How has your franchised business or independent businesses adapted to the recession? Would the result have been the same if you were in the other category?