Monday, April 19, 2010

Dunkin Donuts, Meineke rank highest in Franchisee Satisfaction

FranchiseFacts’ Index (FFI) is a comparative rating created to measure franchisee satisfaction with their business and their franchisor. This index is designed to allow us to evaluate franchises in different industries using a standard criteria. We believe that, over time, relative changes to this rating should correspond to changes in franchisee satisfaction.

The FFI is a weighted average calculation based on responses to ten specific questions in the National Franchisee Survey. Each question addresses, specifically or indirectly, factors that we believe impact on a franchisee’s level of satisfaction with their business and/or their franchisor. The maximum rating available is 105 points. (This is not a percentage calculation and should not be evaluated as such.)

While the survey is in progress, we provide this peek at the current index ranking for the top and bottom franchisees based on responses to date.

The FranchiseFacts Index can be correlated against demographic information to evaluate specific franchises. For example, an FFI rating can utilized to determine if franchisee satisfaction levels vary by sex, ethnicity, education level, overall profitability or other factors. The FFI can also be used to determine if franchisee satisfaction is improving over time. Looking at this information for a specific franchise could help to target franchise sales efforts with an eye toward increased profitability for both franchisor and franchisee.

This is the first publication of information utilizing the FFI. I look forward to hearing from the industry (franchisors, franchisees and others) with comments or suggestions regarding the compilation and use of the index. The remainder of this article explains how the FranchiseFacts Index is derived.


Following are the specific questions in FranchiseFacts’ National Franchisee Survey comprising the FranchiseFacts Index (FFI) and their numeric contribution to the index.

Some factors in this index, such as financial success and future prospects, are at least partially dependent on the overall economy. Other factors, such as franchisee relationship with their franchisor, are directly impacted by the franchisor. The index blends these factors to develop a single rating that we believe to be measurable at a specific point in time and also over a period of time.

We remain open to comments about the derivation of this index. When the current National Franchisee Survey is closed later this year, FFI results will be included in the Franchisee Satisfaction Report that will be available.


Perry Shoom, FranchiseFacts
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