Published August 19, 2019

Franchisee Satisfaction as an Operations KPI

There is no metric that better predicts success or foreshadows issues within a system than the sentiment of its franchise owners.

Don’t buy it? Here are some facts.

Brands ranking in the top quartile in franchisee satisfaction drastically outperform those in the bottom quartile, achieving:

  • 10 times better unit growth
  • 40% higher royalties
  • 54% lower turnover
  • 2 times higher franchisee income

Keeping franchisees satisfied is the paramount responsibility of all franchise brands (as is measuring their satisfaction.) Much of that responsibility falls on the shoulders of the operations team.

Strong development efforts and effective marketing can get prospects in the door and generate excitement as they begin their franchising journey. But, all too often, systems lack the training and support necessary to sustain that excitement – especially in the critical 2-5 tenured group of franchisees. And, as it fades, satisfaction (and validation with candidates) plummets. We call this the Dip.

Tip: Read this post, 4 Ways to Re-Engage Senior Franchisees, for some ideas on how to engage and energize your more seasoned franchise owners.

The Dip is home to a whole host of nefarious characters many franchisors know all too well: high turnover, frustrated franchisees, missed opportunities, sagging profits and more.

Luckily, the Dip is far from inevitable. Brands who measure their franchisee satisfaction, manage it well and whose operations are built with empathy, can minimize the Dip or avoid it entirely. See below.

franchisee lifecycle

The difference is clear. By making franchisee satisfaction a KPI, you’re showing your team and your franchisees that you are committed to their long-term success and value the relationships in your system.

If you now understand the importance of using franchisee satisfaction as a KPI for operations, the next steps are to measure it and learn to improve it.

What better source of knowledge than those who already excel in the arena of franchisee satisfaction? Join us in New Orleans this September for the International Franchise Association’s (IFA) annual Franchise Operations Conference to hear from franchisors whose franchisee satisfaction is routinely sky-high and whose brands are reaping the benefits.

Leading franchise executives will also share inside secrets to success based on real world scenarios around:

  • Improving unit-level economics
  • Using data to drive revenue and grow
  • Defining and maintaining brand standards system-wide
  • Effective communication with franchisees
  • Field support and efficiencies

If you haven’t registered yet, make sure you don’t miss this opportunity to dive into tactics and techniques for operational excellence that will drive sustained growth.

Franchise Business Review is proud to be the Premier Sponsor of the International Franchise Association’s (IFA) Franchise Operations Conference. Join us in New Orleans for this highly anticipated event focused on the part of franchise success that is often overlooked: operational excellence for sustained growth.

Sessions will include panel discussions, networking, roundtables and team exercises with tangible solutions that you can take back to your system.

About the Author: William Zimmermann

As digital marketing manager, Will works closely the rest of the marketing team to help manage the FBR brand and generate interest and awareness around the company’s product offerings. Will assists with the overall digital marketing strategy and aids in the creation of company content. Originally from northern Minnesota, Will enjoys exploring the Seacoast, taking the occasional photo, watching the occasional movie, visiting the occasional coffee shop and petting dogs often.
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