Early stage franchising is a private sector initiative that uses special institutions to provide continuous development and support for the Franchise Business System being offered. The Early Stage Franchise Model provides a business system that starts at the embryonic stage of a new business idea. It provides early stage investors with a more predictable business structure to support their investments. This system also provides new entrepreneurs with guidelines to follow when entering business for the first time. Early stage franchising provides a predictable business structure that allows an investor to easily follow the growth of the new venture they invest in.
The success of growing a franchise maybe found in statistical analysis and industry reports that shows a success rate for franchises of more than 95% after five years, compared to the 50% failure rate during the same period of starting and growing a business using the traditional method of trial and error.