The Truth About Franchisee Satisfaction Surveys: What Franchisees Really Want

Franchise Business Review has been in the franchisee satisfaction survey business for over 20 years and worked with more than 1,300 brands. During that time, we’ve talked with many franchisors who understand the value of franchisee surveys, but we’ve also encountered many who buy into myths and misconceptions that simply don’t hold water. We’re here to separate fact from fiction.

10 Myths About Franchisee Surveys Debunked

Myth #1: Franchisees don’t want to be bothered.

Fact: Everyone wants to be heard, including franchisees. In fact, franchisor/franchisee communication is one of the most common issues that is flagged in our survey. The survey itself only takes about 10-15 minutes of the franchisee’s time and it’s designed to be easy to do online. Your franchisees will be glad you want to hear what they think, but only if you act on the feedback they provide and communicate how you’re using the data to guide priorities for the organization.

Myth #2: Satisfaction is just a feeling. It isn’t measurable. 

Fact: Franchisee satisfaction may seem soft and subjective, but it can be measured. Satisfaction is dependent on how franchise owners’ experiences compare with their expectations. By asking franchisees a standard set of questions with answers on a scale of excellent to poor, we can determine any given brand’s Franchisee Satisfaction Index (FSI) Score. FSI measures franchisee satisfaction and engagement in eight key areas, including training and support, systems and operations, financial opportunity, leadership, core values, and community. We then use it to benchmark your system against more than 1,300 franchise systems representing tens of thousands of franchisees.

Myth #3: A survey won’t tell us anything we don’t already know.

Fact: When it comes to the health and growth of your system, going with your gut just doesn’t cut it. Even if you already think you know what’s going on in your system, a survey can give you actual data so you’re not relying on just a few “loud” voices in your system.  A survey provides peace of mind letting you know you’re right, or helps uncover issues you didn’t even know existed.

Using a third-party to survey your franchisees typically results in a higher participation rate and you’ll get more feedback. And because the surveys are anonymous, you’ll get more honest feedback.

Once you have actual, measurable data, you can break it down to look at specific markets, field reps, franchisee demographics, and more to identify issues that may  be affecting certain segments of your system and need targeted responses.

This is a data-driven way to identify areas of risk and opportunity and track your progress.

Myth #4: Surveys are expensive.

Fact: Actually, you can survey your franchisees for free with no obligation. If you score well, you’re named an award-winning brand on our list of Top Franchises. You can promote your award winning status and highlight your franchisee satisfaction to candidates as broadly as you want, all without paying a dime.

If you do decide to purchase the data we collected with the survey, the average annual cost to survey is less than buying lunch each day over the course of a year. Or think of it this way: the cost to work with a broker is $15,000 – $20,000 or more per deal. But, if you choose to invest in your data (a fraction of the cost of a broker), not only do you open up a world of opportunities to close more deals, but if you bring just one more franchisee on board using your data, the survey has more than paid for itself.

Myth #5: Only really big systems survey their franchisees.

Fact: It’s important to establish a formal feedback loop with your franchisees from the very beginning, similar to an annual review that you might perform with employees. It helps set the expectation with your franchisees that you value their input, and ensures their continual involvement in the direction and growth of your system.

We encourage systems to start surveying as soon as they have 10 owners open and operating for six months. If you’re growing, your franchisees are spending a lot of time fielding calls from candidates who are going through the validation process. Surveying them can effectively alleviate that burden. You’ll have data available to share with candidates before they validate, so your current owners have to spend less time on the phone answering candidates’ questions and can focus on growing their business instead.

Plus, if you have strong results, you can share that data publicly to attract more buyers and continue building your brand.

Myth #6: Surveys are just an opportunity for franchisees to complain.

Fact: Sure, there are going to some naysayers in your system, and yes, there will be some feedback on the survey that is hard to hear. But part of why surveying is so important is to separate the complainers from the complaints. A formal process done annually gives franchisees an outlet to provide constructive feedback. The more you communicate, and the more you talk to your franchisees (the good and the bad), the better you’ll be able to identify weak areas that need to be addressed and weed out the loud voices that simply want to complain.

Myth #7: If a brand is successful, the franchisees are happy.

Fact: Just because your brand is growing and franchisees are profitable, it doesn’t necessarily mean they’re satisfied. Our research shows that nearly 1 in 5 new franchisees rate training and support “poor” or “average”. That’s 20% of new franchisees who are unimpressed right out of the gate at a time when they should be raving about everything your system does for them.

Imagine, then, what franchisees who have been in the system for 10 or 15 years might be feeling. The only way to find out where and when franchisees are falling through the cracks is to survey them and ask for their feedback. These warning signs can tell you if your system is already at risk.

Myth #8: An internal survey works just as well as a third-party survey.

Fact: It’s true that any effort to collect feedback from your franchisees is a step in the right direction. However, using a third-party survey gives you so many more advantages. For example:

• Typically, a survey conducted by an independent firm gets a higher response rate, giving you a better representation of the satisfaction of your owners and more honest feedback.
• Many potential investors and private equity firms now require satisfaction data when considering whether to invest. Data you collect isn’t as meaningful as data gathered by a non-biased firm. In fact, third-party satisfaction data can even justify a higher valuation.
• You can use the data as a sales tool. It’s important to use the data to improve operations, but if the data tells a good story, sharing an independent report gives it more credibility with candidates.

Myth #9: If the timing isn’t right, the survey will backfire.

Fact: There’s always a reason why the timing isn’t right—changes in leadership, new program roll-outs, the economy—but these are just excuses. A survey is about building trust between you and your franchisees, and being accountable to everyone in your system, which means being up front about why you’re asking for feedback and what you plan to do with the data.

We can certainly help you understand when it makes the most sense to launch a survey in order to maximize participation, but simply pushing it off because it’s “not a good time” isn’t the answer. No matter what the responses, having a baseline benchmark will provide you with the business intelligence you need to identify priorities and focus your efforts on making improvements.

Myth #10: Surveying takes too much staff time.

Fact: Surveying actually takes almost no time for your staff to prepare and can actually save them time in the long run. All we need from you is a contact list of your franchisees and a copy of your FDD and we take care of the rest. We even provide you with email communication templates you can send to your franchisees so they’re aware that we’ll be contacting them.

Once you have the data, we’ll walk you through the results. We recommend that each of your teams spend some time going through the data. Spending a little time up front will give them insights that can save them hours in the long run by showing them where to focus their efforts.

Now that you know the truth, it’s time to survey and start growing your brand the right way. Learn more about our franchisee satisfaction surveys and request a free demo.

Related Resource

Myth vs Fact: What Franchisors Get Wrong About Franchisee Surveys

For more than 20 years, Franchise Business Review has surveyed franchisees across over 1,300 brands to help franchisors understand what their owners are really thinking. This guide distills two decades of that independent research into the myths worth busting and the warning signs worth watching.

Download our free guide and you’ll learn:

• The 10 most common myths that keep franchisors from surveying their owners, and why each one falls apart under the evidence
• Four warning signs that dissatisfaction is already taking root in your system, even when the financials look fine
• What separates top-performing brands from the ones quietly losing ground

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