Jeff Johnson's blog

LOUISVILLE, Ky. (Blue MauMau) - Nobody seems to know what this economic mess really entails or when it will settle down. Is the sky falling? Probably for some, but not for most.

First let me say that I am thankful that the WSJ included their methodology. Most often we are left wondering how the publisher decided anything. However, I do wonder how many of the items listed in the methodology have anything to do with a prospective franchisee selecting a great franchise opportunity. Someone will have to explain to me what a “brand's average three-year return on equity” has to do with a prospect selecting a franchise?? [To help prospective franchisees trim their options to a manageable list and offer some points of comparison, WSJ.com and FRANdata…what?]

Without franchisee survey standards and rigorous methodology, the public could be easily mislead

Some Franchisors regularly perform Survey/Research to communicate with their franchisees and improve their franchise programs. Because of the unique nature of the franchise relationship often times it is necessary to employ the services of an outside Research firm to guarantee respondent anonymity and be certain franchisees feel comfortable "speaking freely". 

If the results of any survey are to be published and shared with prospects as a way for the company to be transparent about how franchisees rate the services provided by the franchisor (overall franchisee-satisfaction) then it becomes the responsibility of the research firm (and everyone in franchising) to set strict ethical standards and rigorous methodology or the public could/would be easily mislead and the survey becomes more marketing spin and sales hype. Franchising deserves better; I propose the following. 

When Looking at Franchisee Satisfaction Surveys, Beware of Survey Bias 

First, having franchisees rate the quality of the support services that they receive from the franchisor is extremely valuable! But, as in most things "the devil is in the details".

1. Every franchisee must be allowed and encouraged to participate in the survey...NO exceptions!
2. The higher the completion rate the greater the accuracy of the survey.

It's an issue of survey bias; how closely do the respondents' opinions reflect that of the total population of franchisees? If only 25% of the franchisees complete the survey you will have much less confidence in the results then if 75% of the franchisees complete the survey!

We have found at the Franchise Research Institute that the single greatest predictor of a franchisee’s success is the quality of their relationship with the franchise company. It makes sense when you think about it. The franchisee must depend on the franchise company to provide expert guidance and assistance in setting up and running their franchise business. The more effective a franchise is at sharing its expertise, the greater the chances are that an individual franchisee will be successful. Conversely, if a franchise company neglects its franchise owners or fails to support them properly, it is likely that those owners are headed for failure.

Buyers need a sense of franchisee satisfaction. So here is a directory of franchisee surveys that we have added in Blue MauMau's tools section to assist the franchise buyer. 

In the course of our work, we at FranSurvey have determined that the single differentiating factor between high performing franchise brands and mediocre or poor performing brands is the quality of the franchise relationship.

There are many steps in the due diligence process. Investing in a franchise is a serious decision. But, before you spend time or money you must first determine that the quality of the franchise relationship makes this opportunity worthy of your further consideration!

Does this company have a track-record of working hand-in-hand with their franchisees? The quality of the existing franchise relationship will speak "volumes" about what you might expect if you became a franchisee.

Ethical leadership developing and maintaining a culture of franchise excellence! You should settle for nothing less!

I love this quote but, what does it have to do with franchising?

The franchise relationship is difficult to explain especially to someone that has not actually signed the documents and lived through this most unusual non-partnership interdependent partnership/relationship/marriage.

After my wife and I purchased our first franchise in 1984 we spent the next 18+ years as multi-unit franchisees and Area Developers for a system that grew from 200 units to over 750. The company then went public, closed 200 units and went bankrupt. We had certainly experienced the good, the bad and the ugly side of franchising.

Once again Janet Sparks brings her insight and wisdom to the pages of Franchise Times in the November/December issue.

Terrific report on the Subway Franchisee Advertising Fund Trust and very interesting news on the newly formed New England Franchise Association.

Am I the only one that turns to Janet's article as soon as my Franchise Times arrives? Truly a unique franchise perspective that you will not find anywhere else!

Jeff Johnson, FranSurvey.com

With considerable experience as a franchisee and as an Area Developer, it was obvious that the franchisees knew how the company was "doing" long before anyone else!

As prospects search to "narrow the field" of franchise opportunities, would it be helpful if there was a source where they might find a list of companies that had used the services of an independent Research firm with serious standards and strict methodology to survey the franchisees and not ask them to invest their time calling around or having to rely on testimonials?

Do you think it would help both the prospects as well as top franchise companies to not only ask the tough questions but be willing to share the answers with prospects?