Franchisee Satisfaction Index (FSI)
The Franchisee Satisfaction Index (FSI) is the industry standard by which the health of any franchise company can be measured and tracked over time. Established by Franchise Business Review in 2007, FSI is a collective assessment of the critical areas of franchisee satisfaction and engagement.
Franchise Business Review has surveyed over 1,000 franchise brands, representing tens of thousands of franchisees. This data makes our FSI benchmark an extremely powerful tool for evaluating systems, tracking operational performance, and predicting future success.
The FSI measures franchisee satisfaction and engagement in eight key areas:
Training & Support
Successful execution of a franchise business is all about the training, support, and ongoing development that franchisees receive from their franchisor.
Systems & Operations
Proven systems and established operating procedures are part of the foundation of franchising. These are the things that make a franchise system run smoothly, maintain a competitive advantage, and achieve greater success over time.
When it comes to successful leadership of any franchise company, the perception of the franchisees is the reality under which the franchisor has to operate.
Without a basic understanding of trust, honesty, and respect, all business initiatives will meet with significant challenges.
Building a successful business and making money are important, but much of he long-term satisfaction and day-to-day enjoyment of operating a franchise business comes from the relationships formed within the franchisee community.
Part of our 360-degree evaluation of a franchise system includes an honest self-assessment of performance by franchisees.
While the long-term financial goals of franchisees vary widely, making a living and earning a reasonable return on their investment are things that most share in common. Financial success is a primary driver of overall satisfaction.
General satisfaction is where the rubber meets the road. Has the everyday experience of owning a franchise lived up to the expectations of the franchisees? Would they recommend this franchise to others? And most importantly, would they do it again?
FSI can range from 0 to 100% and represents a weighted sum of positive responses to a specific question or a group of questions within one of the areas being measured for satisfaction. If you were to simply add up all the positive responses to a question, giving the same value to an “excellent” response that you give to a “good” or “very good” response, you would paint an overly optimistic picture. FSI provides a realistic view of favorable satisfaction ratings by weighting more positive responses and discounting lesser responses to any given question.
FSI ratings provide a reference point or benchmark to help gauge the overall level of franchisee satisfaction or satisfaction in a specific area. While an FSI of 66.2% on its own is not all that valuable, using it as a benchmark to measure against other areas, or to compare various franchise systems and industry sectors, is extremely useful.
Get Your FSI Score
Participate in our research to learn your FSI score and see how your system benchmarks against over 1,000 other franchise brands.
Don Fox, CEO, Firehouse Subs
“You have a shortcoming in your system if you’re afraid to ask franchisees what they think. But, when you do survey, you better plan on doing something with the data.”