Data Mining of Franchise Failure by Brand
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Authors
Lin, Tingwei
Issue Date
2016-04-01
Type
Presentation
Language
en_US
Keywords
Data mining , Failure , Franchise brands
Alternative Title
Abstract
The SBA (Small Business Administration) offered a list of failure rates of small business loans sorted by franchise brands from 2001 to 2011. This is a collection of data of over 580 franchise brands who fail to pay back general SBA 7(a), real estate and equipment loans. Franchisee loan pay-back rates are tracked by brand for the ten-year period. Ideally, to be informed about where to put one's money, a franchise buyer should look at the profit of a brand's average store and compare the rate of return on the investment with all other brands' returns on investments. The purpose of this project is mining the relationship between the attributes in the dataset and offers a reference to the SBA about which kind of brand franchise worth a loan. And the failure percent of a brand can be accurately predicted with the program. Thus, the risk of loaning would be reduced and the percentage of success case could be guaranteed in a certain extent.