Franchisee Feedback 2007 Satisfaction Ratings

Is investing in a franchise a wise decision? What do Franchisees think about their investment and the franchise industry in general?

According the Franchise Satisfaction Index published in 2007 by the Franchise Business Review, a leading market research company in the franchise industry, most Franchisees are indeed happy with their decision about franchise ownership.

The firm conducted a survey of more than 25,000 franchise owners over the course of two years to measure the overall satisfaction levels of franchise business owners. The survey based most questions on a five-point scale, with 1 the lowest rating and 5 the highest in satisfaction. Five specific areas were covered:
Training and Support Franchisees were asked whether the initial training was adequate and whether ongoing training and support is provided to achieve business goals. The general outcome was 3.4 (average) in overall satisfaction in this area. Initial support received higher ratings (3.6) with ongoing and field support slightly lower. Support for advertising and promotion scored lowest at 3.0, so for prospective Franchisees, this is a "hot spot" that should be carefully scrutinized and understood before signing a Franchise Agreement.
Systems Respondents rated their operational systems in relation to how well the franchise is run and whether its systems make it competitive in the marketplace. Overall, the Franchisees were happy with the products, services, and systems. The competitive factor rated a 3.9, with the majority of Franchisees viewing their operations as good against their competitors. Products & Services were rated highly at 4. Creativity and Innovation, a measure of how much the Franchisor experiments to improve the system, received 3.6, indicating willingness to adopt new systems to be more competitive. Support averaged 3.4 in the systems category. The average satisfaction rating for systems was 3.7 on the 5-point scale.
Relationship This is a crucial aspect of franchise satisfaction and success. And Franchisees gave it high marks, with an overall score of 4.1 for satisfaction with the franchise relationship. Criteria used to measure this category were Knowledge & Support (3.9), Accessible & Responsive (3.9), Communications (3.8), Respect (4.1) and Honesty & Ethics (4.4). This is good news for prospective Franchisees looking to buy a franchise. When you are gathering information about the franchise, look for

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