What Do Franchisees Really Think About Their Franchise?
An Interview with FranSurvey® and Franchise Business Review
by Ed Teixeira
Franchisors should know the satisfaction level of their franchisees.
Although, the options for measuring franchisee satisfaction are limited, there
is an effective way to obtain this information. We interviewed two companies
that provide the answers to the questions franchisors should be asking their
franchisees. If franchisors could read the minds of their franchisees imagine what they
could learn. Are franchisees satisfied with the level of support and assistance
they receive? Do they feel that the franchise program is on the right track? Are
the franchisees meeting their financial expectations? Do they think the
franchisor’s marketing and sales programs are effective? Is the franchisor’s
field staff competent and supportive?
The value of this information would be priceless to a franchisor. Franchisees
are the lifeblood of a franchise system. Satisfied franchisees are necessary to
validate the franchise to prospective franchisees and a strong franchise system
is built upon successful and motivated franchisees. On the other hand,
disgruntled franchisees will spend some of their valuable time complaining and
exchanging anecdotes with fellow franchisees. A positive attitude on the part of
the franchise network is a win-win situation for all.
Since franchisors are not mind readers there needs to be an alternative and
there is. Recently, I interviewed Jeff Johnson, President of the Franchise
Research Institute and Eric Stites, President of the Franchise Business Review.
Both companies survey franchisees and offer franchisors and franchisees the
opportunity to evaluate the performance of a franchise program. Franchise Research Institute
Jeff Johnson is the founder and President of the Franchise Research
Institute. At 29 years old Jeff became a multi unit franchisee and operated the
franchise for 17 years, before founding FRI.
At that time Jeff saw a void in the franchise industry and felt it important
for franchisors to know how franchisees think and feel about their franchise.
Jeff used his franchise experience in conjunction with a local university
professor to develop FranSurvey® a methodology for surveying franchisees.
According to Jeff, the confidential nature of FranSurvey®, which includes
each franchisee having a unique pass code, is a motivating factor for
franchisees wanting to share their information with the Franchise Research
Institute. Jeff, reports that the most frequent problem areas that come up, are
field support, local store marketing and how the franchisor can help the
franchisee to drive more business and solve their problems?
Most franchisors will benchmark key results, utilizing 20 questions and will
resurvey every 12 months. Jeff, told me; “We have found that the single
greatest predictor of a franchisee's success is the quality of their
relationship with the franchise company. The franchisee must depend on the
franchise company to provide expert guidance and assistance in setting up and
running their franchise business.”
Franchise Business Review
This company was founded by Eric Stites 6 years ago. Franchise Business
Review is a national franchise market research firm that performs independent
surveys of franchisee satisfaction. The company uses proprietary software that
was developed specifically for FBR in conjunction with the University of New
Hampshire. The FBR will do an initial franchise survey at no cost and provide a
numerical index to the franchisor. To receive detailed results franchisors will
pay a slight fee. Each year the FBR 50 – Franchisee Satisfaction Awards are
presented at the annual International Franchise Association Convention. Eric
stated that the most frequently mentioned problem areas are: “Training and
support, marketing programs and the financial opportunity for the franchisee.”
Eric stated the position of FBR quite simply: “There are many factors to
consider before buying a franchise and chief among those factors is satisfaction
levels of current franchisees.”
Both companies report that a typical survey takes from 8-12 minutes and
surveys can be customized to meet specific needs. A customized survey can take
30 minutes. In terms of response rate both reported an average of 70% with some
as high as 80-90%.
Measuring the level of franchisee satisfaction provides a number of benefits
for franchisors, franchisees, prospective franchisees and customers.
Here are some examples:
- Become aware of problems before events get out of
control
- Identify priority items or issues that require focus
- The process demonstrates franchisor’s concern and
willingness for program improvement to its franchisees
- Identify marketing and product opportunities
- Evaluate competency and effectiveness of franchisor
staff
- Provide prospective franchisees the level of
franchisee satisfaction
To view a listing of franchise satisfaction ratings you can visit
http://www.fransurvey.com/ and
http://www.franchisebusinessreview.com/
Using surveys to measure the satisfaction level of franchisees is an
effective way to improve and develop a franchise network.
Contact Information:
Franchise Business Review
Eric Stites, President
603.433.2266
eric@franchisebusinessreview.com
Franchise Research Institute
Jeff Johnson, CEO
800.410.5205 Ext.211
jeff@franchiseresearchinstitute.com
© 2010 FranchiseKnowHow, LLC
Ed Teixeira is the President of FranchiseKnowHow, LLC. He
can be reached at
franchiseknowhow@gmail.com
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