Consider joining a franchise network to start your own business. If you aren’t sure which one of these options you would like to pursue, you can take a deeper dive into the Franchise Business Review Top 200 Franchise Owner Satisfaction Report.
Franchise Business Review, an external, third-party organization, produces this report every year. It is contracted by hundreds of franchise brands to survey franchise owners to gauge satisfaction across a broad range of areas objectively. Their most recent survey is the result of more than 300 franchise brand surveys with over 28,000 respondents.
This report is a valuable resource for entrepreneurs who are just starting. It covers the core areas of technology, marketing, recruitment, training, leadership, business support, and supplier performance. This report reflects how franchise owners have graded each franchisor in each area. However, it also offers the basics to evaluate any business being considered, regardless of whether it is owned as an independent entity or as a franchise.
For those who want to become entrepreneurs, this report has many hidden gems. Let’s look at three hidden gems that will help the aspiring entrepreneur.
1.The age and size of the franchise system are key factors, not the satisfaction of franchise owners is vital. These are some of the biggest brands and networks that we all know and frequent. They were not included in the report. They may conduct their satisfaction surveys to get feedback from their franchise owners. These are massive networks that have been around for decades. Therefore, they likely do pay attention in some form or another to the feedback of franchise owners. Franchise Business Review has a report that highlights the benefits of franchising and provides a detailed overview.publicNot only does it rank the franchise brands, but it also shows who is most effective at satisfying franchise owners. Many franchise systems with the highest ratings have less than 100 units and have been franchising for less than five years. There is no direct correlation in satisfaction between larger franchise systems and greater levels of happiness. It is not enough to have one or the other.
2.You should pay special attention to the core values, ethics, and leadership ratings. These areas are less important than they seem because they are more abstract. However, surveys in these areas reveal vital strengths and sizes that can influence future franchise owners’ success.
There may not be enough core values to match what is being offered or presented to potential franchisees. The core values of leadership, ethics, and core values often determine the commitment to success for franchise owners and the ongoing investment required in critical areas like training, recruitment, and operations. This can indicate whether the owners of franchise systems have a short-term view to improving their profitability (franchisor) or if they have a long-term idea to achieve success for each franchise owner (franchisees).
Answers to these three survey questions will often indicate if brand owners and leaders have an extensive operational understanding of the business. Is it managed by an experienced team who has the deep industry knowledge and is driven by franchise owners’ success? Are they trying to make it as profitable as possible, but without the long-term investment and focus of franchise owners? These questions can provide valuable information that is often overlooked.
3.Higher franchise owner satisfaction and success does not necessarily mean a higher investment or cash upfront. Most top-ranked franchise brands need less than $75,000 upfront investment and less than $75,000 in cash to get started. Many more require less than $50,000 and less than $40,000 in cash. For example, the best-rated franchise brand involves an investment of $74,560. This isn’t a food concept, as many might assume. This is important because lack of capital is the main reason any business fails, whether franchised or independently. This is according to the Small Business Administration’s (SBA) ongoing monitoring of business loans and the most common reason for failure. A good working capital and sufficient investment funds are essential for any business. But, this latest report shows that success doesn’t depend on the most expensive companies to start.
The most recent franchisee satisfaction survey report has a lot of valuable data, analytics, and helpful content. You can use this additional tool to help you choose the right brand, culture, and investment to support your entrepreneurial goals.