Franchisees don't do their homework and are too optimistic about risks: research
- Written by Jenny Buchan, Associate Professor in business law, UNSW Australia
Franchisees are unrealistically optimistic about risks of setting up their business, even after those risks have been disclosed to them, our research shows.
We tested this unrealistic optimism by surveying 205 current US franchisees from 26 brands. We chose the US because there is publicly accessible data about the identity of franchisees there...