The greatest benefit to a franchisee is the reduction in his risk of business failure. As an ethical franchisor should have proven the business concept in the marketplace prior to franchising by way of a pilot or other trading experience, most of the obvious problems should have been solved and, therefore, the risks to a franchisee minimised. It is statistically proven that far fewer franchisees fail within the first three years compared to over 90 per cent of other new business start-ups.