Introduction/Objective:

During the selection of a franchise, the investor or future franchisee has data on Mexican and foreign franchisors concentrated in the specialized yearbooks of the sector, whose informative publications express success and prosperity, especially in brands with paid spaces. This work seeks to contribute to the scarce literature on this franchise issue, therefore, it aims to identify and evaluate the factors that determine survival, abandonment and failure when operating the franchise model in Mexico, during the period 2010 to 2019 in the sector, trade and services, in order to have a source of analysis, in addition to the information available in the market that allows reducing investment risks.

Methodology:

An exploratory, correlational and explanatory research was carried out under a longitudinal research design, which covered 10 years, ex post facto evolutionary; Data from 8,125 Mexican franchisors were collected, establishing survival as the dependent variable and the characteristics of the franchisors as independent variables.

Results:

Based on the multiple discriminant analysis, notable differences were found between the franchises who survived, failed or abandoned the model, with the variables age before franchising, membership in a franchise association and percentage of royalties being significant.

Conclusions:

The companies should consider franchising in a mature stage, seek to establish business networks and accept contracts with royalties that are convenient for the permanence of the franchise.