Newly released research shows record high satisfaction for franchise business owners, with nearly 9 in 10 rating their franchise opportunity above average
November 10, 2021 – Portsmouth, NH – Franchise Business Review announced today that satisfaction among franchise business owners is at an all-time high. The Portsmouth, NH-based research firm has been tracking satisfaction among franchise owners (franchisees) since 2005.
The data released by Franchise Business Review shows that satisfaction among franchisees has increased 3% since pre-pandemic levels. Other key findings include:
- 88% enjoy being part of their franchise organizations
- 86% rate the opportunity provided by their franchisor above average
- 85% respect their franchisor
- 80% would recommend their franchise to others
- $118,792 is the average annual pre-tax income
The current data is based on surveys of over 30,000 franchise owners from March 2020 to October 2021. Long-term trend data is based on research of over 200,000 franchise owners between October 2005 and October 2021, representing nearly 1,200 different franchise brands.
“While the pandemic impacted various business sectors differently, the last 18 months have clearly demonstrated the inherent strengths of the franchise business model,” said Franchise Business Review CEO Eric Stites. “The old franchise adage of ‘being in business for yourself, but not by yourself’ was never more important. Thanks to fast innovations, significant support, and responsive crisis management, many franchise brands have emerged stronger from the pandemic and that is reflected in higher franchisee satisfaction across many sectors.”
“Thanks to fast innovations, significant support, and responsive crisis management, many franchise brands have emerged stronger from the pandemic and that is reflected in higher franchisee satisfaction across many sectors.”
-Eric Stites, CEO, Franchise Business Review
Franchise Business Review’s research looked at eight key areas of franchise operations in order to measure overall satisfaction and engagement among franchisees. Participants were asked 33 benchmark questions, as well as a number of market area and demographic questions to determine a Franchise Satisfaction Index (FSI) score.
“While franchising as a whole has emerged stronger, it’s important to recognize it wasn’t without casualties,” continued Stites. “Early on in the pandemic, it was reported that tens of thousands of franchise locations were shuttered, especially in some of the hardest-hit sectors like restaurants, hospitality, and travel. Many senior-level corporate staff were also laid off or forced into early retirement. In our 2021 [email protected] report from early this year, Franchise Business Review discovered that the number of corporate franchise employees with 7+ years of tenure had dropped by 55% across all sectors.”
Average annual incomes for franchisees varies widely depending on concept, industry, and market area. Based on Franchise Business Review’s survey data, the average annual pre-tax income for franchisees beyond the “startup period” (those who have been operating their business for two or more years) is $118,792. Income figures DO NOT include any equity value of the business, or other assets such as real estate, inventory, or equipment.
“Certainly, no franchise company is perfect,” said Stites. “But we do know that the key drivers of satisfaction include training, marketing, technology, innovation, and franchisor – franchisee relations. Financial performance obviously plays a big role as well, and when people are making money, it takes the pressure off other areas. Our data helps franchise companies better understand their strengths and challenges and improve overall franchise performance.”
Franchise Business Review will be releasing a full report on the key findings from our research and naming the award-winning Top Franchises of 2022 on January 27, 2022. Register here: https://us02web.zoom.us/webinar/register/WN_u5HThSF5TEyyPrc0vH9BdQ
Franchisors who are interested in participating in Franchise Business Review’s research and awards should visit: https://tour.franchisebusinessreview.com/franchisee-satisfaction-awards/
About Franchise Business Review
Franchise Business Review (FBR) is an independent market research firm specializing in benchmarking franchisee satisfaction and employee engagement in the franchise sector. FBR works with franchise brands across North America to conduct satisfaction research with their franchisees and employees to help entrepreneurs make informed buying decisions, support franchise business owners, and drive growth for franchise brands. Each year FBR researches the top franchise brands and publishes free and unbiased franchisee satisfaction and employee engagement research reports. Since 2005, FBR has surveyed hundreds of thousands of franchise owners and over 1,200 leading franchise companies. To read our publications, visit https://franchisebusinessreview.com/page/publications/.
B2B Marketing Director