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The Franchisee Satisfaction Study

The Franchisee Satisfaction Study 2008 looks at what motivates a Franchisee to stay with a franchise company longer, what motivates a franchisee to be a multi-site owner and assess the general satisfaction of franchisees across the franchising industry.

Benefits Franchisors will gain from the report include:

  • • Strategies to keep Franchisees longer and therefore make significant savings on recruitment and training. This means new franchisees expand rather than maintain the network.
  • • Insights in how to encourage multi-unit ownership so that Franchises can expand organically to supplement franchisee recruitment in a tough market.
  • • A means to measure franchisees' satisfaction to promote best practice in franchising and positive word of mouth.

Table of Contents

Disclaimer 002
Supporters 005
Foreword 007
How to Read 011
Contents 011
Report Objectives 017
Executive Summary 019
Critical Intelligence  
Areas Investigated 025
  The Key Factors  
  I will renew my franchise agreement beyond my current term 027
  I would recommend being a franchisee within my franchise system to a friend or colleague 031
  I would like to be a multi-unit owner within my franchise system 035
Overall Snapshot 046
Key Areas Explained 052
  Franchise support staff mentor and guide me through problems 054
  My franchisor communicates clearly with me 055
  In my franchise system I feel like I am part of a team 056
  My franchisor and I trust each other 057
  My franchise system provides good training opportunities to develop my personal skills' set 058
  My franchise provides ongoing financial guidance to help me operate profitably 054
  I am valued by my franchise system 055
  Franchise support staff are quick to respond to my enquires 056
  I learn valuable processes from the franchise system on how to run a successful business 057
  I am given the opportunity to give input into how my franchise system works 058
  There is a good structure in place to allow sharing of knowledge between franchisees 054
  Franchise support staff personally contact me on a frequent basis 055
  The business systems provided by my franchisor make operating my business simple 056
  Royalty fees or goods or services I have to buy from my franchisor are value for money 057
  I draw a larger salary from my business than I could receive elsewhere 058
  I am going to be able to sell my franchise unit for a good return on investment 054
  My business looks successful to my friends 055
  My family and friends believe in the mission and values of my franchise system 056
  I care about my customers life beyond their consumer experience 057
  My franchise system is a well recognised brand 058
  I am passionate about the product or service my franchise sells 054
  My family and friends are supportive of the time I put into my business 055
  I have a good work life balance 056
  I am able to easily change negative situations in my business 057
  There are territories available nearby for expansion 058
  I am able to renew my franchise agreement early 054
  My staff care about my business 055
  My staff are responsive to the directions I give 056
  I hand over important tasks to my staff 057
  In their areas of responsibility my staff are better than me 058
  Within my franchise system there is the opportunity for me to mentor new franchisees 054
Detailed Findings  
  Returns 090
  Support 096
  Relationships 102
  Skills 108
Demographics & Dynamics  
  Gender 114
  Age 114
  How many days do you work a week? 115
  How many hours do you work a week? 115
  How long have you been a franchisee of this franchise system for? 116
  What region do you operate in? 116
  What area do you operate in? 117
  What type of location does your business trade from? 117
  My primary role in the business is 118
  Percentage of time spent working in the business 118
  My preference in approaching work is to 119
  Prefered role within the business 119
  My franchise system is territory based? 120
  Does your franchise system charge a flat or percentage based royalty fee? 120
  Does your franchise system allow you to personally own multiple units? 121
  In your franchise system do you personally own a single unit or multiple units? 121
  My Franchisor communicates well in these areas of communication - Phone 122
  My Franchisor communicates well in these areas of communication - Email 122
  My Franchisor communicates well in these areas of communication - Intranet 123
  My Franchisor communicates well in these areas of communication - Newspaper 123
  My Franchisor communicates well in these areas of communication - Site Visits 124
  My Franchisor communicates well in these areas of communication - Conferences 124
  My Franchisor communicates well in these areas of communication - Committee Meeting 125
  My Franchisor communicates well in these areas of communication - Franchisee Meeting 125
  Approximate length of employment per manager 126
  Approximate length of employment per full time staff member 126
  Approximate length of employment per part time staff member 127
  Approximate length of employment per casual staff member 127
  What was the total cost of the franchise fee and set up costs for you to enter and start operating your business? 128
  What before tax salary do you draw from your business annually? 128
  In the last 12 months what revenue target did your franchisor budget for you? 129
  In the last 12 months what was your actual revenue? 129
  In the last 12 months what was your operating profi t/loss after all expenses and before tax? 131
  Do you get mystery shopped by your franchisor? 132
  Do you have customer feedback forms in your business? 132
  They do not waste my staff's time 133
  They catch me at times which are typical of how my business operates 133
  Results are fair in evaluating my performance 134
  It is objective 134
  I take results seriously 135
  I make improvements that evaluations point to 135
  Which of these companies do you believe is the best to handle your printing needs? 136
  Which of these banks do you believe is the best to handle your business banking needs? 136
  For your business travels - which domestic airline do you prefer to fly with? 137
Project Design 141
Questionnaire 145

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