Published January 23, 2023
Owner satisfaction remains high in the franchise sector. Franchisees report 10 percent jump in income.
Franchise Business Review (FBR) has been tracking satisfaction and performance across the franchise sector for over 18 years. Last year, franchisee satisfaction hit an all-time high with satisfaction actually increasing 3% over pre-pandemic levels.
According to FBR’s most recent data, franchisee satisfaction is holding steady despite ongoing challenges with labor shortages, supply chain issues, and a potential recession.
At the International Franchise Association’s Leadership Summit & Franchise Action Network meeting earlier this fall, franchising representatives and government regulators met to discuss how to protect franchise businesses in the current labor market. Read more about the key takeaways here.
The new research shows that while some satisfaction KPIs have dipped just slightly, overall satisfaction has remained above pre-pandemic levels—a sure indicator that franchisee satisfaction is a top priority for franchise companies—and that’s good news for franchise owners and anyone thinking about investing in a franchise.
Key Satisfaction Points from Franchise Business Owners
- 86% Enjoy operating the business
- 85% Enjoy being part of the franchise organization
- 83% Franchisees are supportive of each other
- 82% Respect their franchisor
- 82% Franchisees are supportive of the brand
- 78% Would recommend the franchise to others
Franchise Owners Continue to Report Strong Incomes
Franchise owners reported a 10 percent jump in income compared to the previous year. The average annual income reported by the nearly 38,000 franchisees surveyed by FBR is currently $118,567 (compared to $107,199). This is 72% higher than the average independent small business owner’s salary of $68,863 reported by PayScale.
Demographics of Franchise Owners Surveyed
- Business Ownership Tenure: 54% have owned their business for 5 years or less, and 28% have owned their business for 10+ years
- Multi-Unit Ownership: 40% own more than one location/territory
- Median Age: 45-54 years old
- Sex: 35% Female / 65% Male
The Top 200 Franchises of 2023
FBR’s 18th annual Franchisee Satisfaction Awards™ names the Top 200 Franchises based on owner satisfaction. This year, nearly 38,000 franchisees from 360 leading franchise companies completed our survey and from there we identified the franchise brands with the highest levels of satisfaction and performance to educate potential buyers about which franchise to invest in. Each of the 200 Franchisee Satisfaction Award winners on this year’s list achieved stellar ratings from their franchisees.
There are thousands of franchise opportunities available today and many companies claim to be the “best franchise”, but our research delivers the most comprehensive list of today’s top franchise opportunities based on actual reviews from the franchisees who own them.
The list of award winners is available at FranchiseBusinessReview.com
FBR’s research methodology is available here.
If you are not currently measuring franchisee satisfaction across your franchise system, Franchise Business Review can help. We offer a standard survey that we can send to your franchisees, and a proprietary online platform where you can access the results. We also offer different options, based on what your goals are, for presenting your data to get the most visibility with candidates and best practices for using it to help move them through your pipeline. Learn more here and contact us to discuss how to get started.
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- A confidential assessment of your brand
- Your FSI benchmark score, which shows where you rank
- The opportunity to be recognized as a Top Franchise award winner
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