Monday, March 8, 2010

Resolving Franchisee and Franchisor Conflict

FranchiseFacts was created for the sole purpose of improving communications between franchisor and franchisee. We believe that is best addressed through Franchisee Satisfaction reporting.

As discussed in my previous posting, the source of many franchisor/franchisee conflicts can often be reduced to a disagreement on how profitability is determined. The challenge, however, is to find a better way of communicating between both parties.

Larger corporations have a different way of gathering and analyzing information than smaller operations. For this reason the larger corporations can be seen as slower to react and slow at decision making. Franchisors must make decisions that support many different franchisees with different situations and priorities. What is good for one franchisee may not be good for others. Regardless of what programs are introduced or not introduced by a franchisor, many are likely to disagree.

What FranchiseFacts does is gather information that results in a better understanding of the franchisee perspective. Put differently, we report on Customer Satisfaction (or Franchisee Satisfaction) for the franchising industry. This information is then communicated to the franchise community through our reports.

In the coming months and years, we plan on providing information that addresses diverse topics such as;

• The makeup of franchisees by gender and ethnicity
• Overall franchisee profitability by industry, region and other criteria
• Franchisee satisfaction with existing franchisor relationship by product/service and department
• Perceived quality of services provided by franchisor
• Perceived effectiveness of advertising and marketing efforts by franchisor
• Developing linkages between local store revenues and key holidays/major events
• Understanding which advertising venues are most popular among franchisees

Our survey(s) will evolve over time to reflect changes in the economy and suggestions from franchisees, franchisors and other interest groups.

Beginning with my next posting, we will take a peek inside the current survey and present some of our preliminary findings.

I encourage you to participate in the survey at and also to submit your own suggestions for changes to our survey or methodology.

FranchiseFacts – Capturing the franchise experience

Perry Shoom, FranchiseFacts
Capturing the franchise experience!

Franchisee Survey in progress at
If you are a franchise owner or store manager, please participate!

Understanding the Franchise Experience blog can be found at

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