BiggerPockets Money Podcast · Tuesday, September 8, 2026
Alex Sarnack argues that franchising is a de-risked entrepreneurial path, citing an 85% success rate over five years for franchises compared to 50% for independent businesses. He explains that this is because franchisors have a vested interest in franchisee success, providing a proven system and support structure.
“But they lose the benefits that come with franchising, which is a five-year success rate of 85% versus 50% for independent businesses.”
“So, it's a partnership. And that's really important. It's not just buying a license. It's entering into a partnership with a franchisor who wants you to win.”