THE FRANCHISE LIE Spread by Greg Cantrell, Jack McBirney & 1-800-DRYCARPET
The Franchise Lie is the franchise industry-wide deception created with bogus statistics and fictional “research” to lull would-be opportunity seekers into a false sense of security.
Promoters of The Franchise Lie, like convicted sex offender Greg Cantrell (CEO of 1-800-DRYCARPET) and franchise consultant Jack McBirney (Owner of McGrow Franchise Consulting), quote imaginary research they attribute to the U.S. Department of Commerce that states that buying a franchise is nearly a risk-free investment, vs. starting an independent business, which is a much higher-risk proposition.
These bogus franchise statistics have been discredited for more than a decade, yet they can still be found on hundreds of franchise websites, in franchise marketing brochures, and in news articles.
Despite the fact that the International Franchise Association (IFA) has publicly renounced the use of such bogus statistics, its members (including former member Gregory Cantrell and his 1-800-DRYCLEAN and current IFA supplier McGrow Consulting) continue to spread The Franchise Lie without consequence.
Gregory Cantrell Spreads The Franchise Success Lie
The franchise website of Greg Cantrell promotes his 1-800-DRYCARPET franchise using The Franchise Success Lie, stating:
Low Risk: The U.S. Department of Commerce estimates that 95% of franchises succeed; only 25% – 35% of independent businesses succeed. Why the difference? Since a franchise is usually a duplicate of an already successful business, it should succeed.
Not only is this claim, which is fraudulently attributed to the U.S. Department of Commerce, bogus, real studies have shown the opposite to be true. Because franchise systems themselves often fail, they drag the franchisees down with them.
The irony in this case is that the 1-800-DRYCARPET franchise seems to be abandoned while CEO Cantrell serves 3 years in prison for raping a 12-year old female relative (Read: GREG CANTRELL Franchise CEO, Sex Offender)
Jack McBirney McGrow Consulting Spread The Franchise Lie
Where did sex offender Greg Cantrell get The Franchise Lie statistic?
He cites long-time franchise consultant Jack McBirney, owner of McGrow Franchise Consulting.
And sure-enough, the McGrow franchise consulting website proudly displays The Franchise Lie, inducing both would-be franchisors and would-be franchisees to make the largest investments of their lives based on the blatant lie that franchise opportunities are nearly risk-free investments that hardly ever go wrong.
UnhappyFranchisee.com is on a mission to expose and eradicate The Franchise Lie.
Have you been told The Franchise Lie? Who told it to you? Please leave a comment below!
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During the 1970’s, 80’s, and 90’s, the United States Department Of Commerce conducted research and published statistics saying that a person who buys a franchise has a better chance of success than a person who starts up an independent business. We posted this information on our website.
Around the year 2000, the Department Of Commerce stopped gathering and publishing this information. We removed it from our website 8 years ago.
While we sympathize with the unhappy, anonymous writer of this article who apparently had a difficult experience with 1-800-DRYCARPET, we have never spoken to or advised the writer. Likewise, we have never spoken to or advised 1-800-DRYCARPET and therefore have no knowledge of their experiences with the writer.
Unfortunately, not all businesses or franchises succeed. And, some businesses are around for a very long time before they’re overtaken by a changing marketplace, new technologies, mismanagement, and other reasons, such as, BLOCKBUSTER, KODAK, POLAROID, LORD & TAYLOR, TOYS ‘R’ US, COMPAQ, etc.
But, while the Department Of Commerce no longer publishes these statistics, we believe that the message that they conveyed still holds true. We believe that a person starting an independent small business may have a harder time of achieving success compared to a person who buys a franchise due to the fact that the franchise headquarters provides training, support, marketing, and guidance to the franchise buyer.
It’s why people buy franchises.
Jack McBirney
McGrow Consulting
Jack McBirney:
Please provide actual documentation for these statements:
“During the 1970’s, 80’s, and 90’s, the United States Department Of Commerce conducted research and published statistics saying that a person who buys a franchise has a better chance of success than a person who starts up an independent business. ”
“Around the year 2000, the Department Of Commerce stopped gathering and publishing this information.”
“We believe that a person starting an independent small business may have a harder time of achieving success compared to a person who buys a franchise due to the fact that the franchise headquarters provides training, support, marketing, and guidance to the franchise buyer.”
These points have been so thoroughly debunked it’s embarrassing to have to educate a franchise consultant.
Department of commerce NEVER compiled such statistics. This comes directly from Andy Kostecka.
Check the study showing that 80% of all FRANCHISORS fail within 10 years.
Check the SBA study that shows that not only do franchises fail more often, but when they do they suffer greater losses.
Check the Congressonal testimony debunking the statistics back in the 90s… yet your website continued to post the bogus chart for over a decade later… even after the IFA issued a letter telling members to stop using it.
Not only have you been promoting misinformation for decades, the entire premise of your argument is misleading.
A high percentage of franchise sellers have fewer than 50 locations and less than 5 years experience in franchising. Do you think Al’s Burger on a Stick is a risk-free investment because you did a combined average with McDonald’s & Chik Fil A and the stat looked good?
Jack, why don’t you publish your client list? What is the McGrow franchisor success rate?