Franchisee satisfaction up and down reveals survey

The online site topfranchise.com.au reveals a drop in franchisee satisfaction in its quarterly review of more than 1000 franchisees across 65 systems across Australia. The latest results show that the tightening economy is affecting business sentiment, with average ratings for most franchise systems down compared to the previous quarter.

Franchisee satisfaction ratings for financial services businesses have been hardest hit by a loss of confidence in the economy. However, some businesses including those offering healthcare, small luxuries and affordable family dining have been well placed in the current economic environment to maintain and even improve overall franchisee satisfaction.

Ian Krawitz, head of intelligence at 10 Thousand Feet and founder of topfranchise.com.au, said the drop in franchisee satisfaction was not surprising given the current economic climate: “This initial dip in franchisee satisfaction is in no way indicative of a loss of confidence in the franchising sector as a whole.

“Our survey takes into account seven different indicators of franchisee satisfaction, and while opinion on financial rewards has obviously dipped, other areas have held steady. For example, passion for the business and interest in renewing franchise agreements have increased significantly as franchisees realise that they are in a good situation compared to those facing redundancy,” said Krawitz.

Souvlakihut is in the affordable dining market and has a kids eat free offer that started as a trial in Victoria but will soon be rolled out to other states. The franchise remains the firm favourite among those franchisees surveyed but there are newcomers to the Top 10; aged and disability care franchise Just Better Care , mobile car cleaning and detailing business Car Care , professional equipment supplier Snap-on Tools and appliance rental service Mr Rental .

Drive-through coffee franchise Muzz Buzz , and women-only gym chain Fernwood Fitness also broke into the Top 10 for the first time, while gourmet cookie retailer Mrs Fields , Mortgage Choice and ANZ Mobile Lending services all retained Top 10 positions in the new rankings.

“Franchises which offer value driven products or services, such as Souvlakihut and Mr Rental; and those that offer small luxuries such as a Muzz Buzz are doing well in this climate,” said Krawitz. “It’s also clear that some sectors are relatively immune to an economic downturn, with socio-demographic trends dictating that healthcare businesses like Just Better Care still have room to grow.”

This article appears courtesy of 5 minute Franchising Newsletter