When Franchisees Speak, I Listen!

I was once a franchisee myself so I listen when franchisees speak. Jeff Johnson of the Franchise Research Institute was also a franchisee. He also listens to what franchisees have to say, so much so that he has made a business of asking franchisees their opinions of the franchise system they are a part of.

“I have never met a prospect that wasn’t eager to join a franchise system that contained energetic, successful, profitable franchisees that were optimistic about the future of their franchise business,” states Jeff Johnson, President, Franchise Research Institute and FranSurvey.

Jeff conducts independent franchisee surveys on behalf of franchisors. Those franchise systems are rated and ranked by their franchisees, through their collective experience compiled into comprehensive reports that provide prospective franchisees the insight they need to make a confident, informed investment decision.

There are thousands of franchise opportunities for sale today, getting past the marketing clutter and hyped sales pitches to select the right franchise can be a daunting task. Due diligence is a very important step in a prospective franchisees investigation and talking to franchisees is an important step in that due diligence.

Reading a survey of the franchisees will never replace the importance of talking to franchisees yourself, but it certainly help you narrow your franchise choices and focus on the companies worth your due diligence.

I recommend that before you invest in a franchise, you should speak to at least a dozen franchisees and ask them if they would do it again. If more than 25% answer ‘no,’ then move on!

But if you are investigating a large franchise system speaking to a dozen franchisees wouldn’t be a large enough sample to draw any hard, statistically-based conclusions, or reveal enough consistent information to compare and contrast separate opportunities on a relevant, relative and bias-free basis.

Over thirty franchisors have been “Franchisee Approved” by the Franchise Research Institute. The survey report I read on the Molly Maid franchise was impressive, there was a statistical basis for Molly Maid receiving the “World Class Franchise Distinction” from the Franchise Research Institute. In total 195 out of 249 franchisees were surveyed (78.3%). The 11 page report contained each question asked and a breakdown of the answers collected. For instance when asked the question, “Knowing what you know now, and if you had it to do over again, how likely would you be to buy this franchise? “  83% of the respondents would be likely to buy the franchise again. That’s a pretty strong vote of confidence.

A Franchise Research Institute survey provides a statistically valid response rate, which in addition to your own franchisee interviews gives you an in depth perspective of the franchise system you are about to join. You can purchase the reports directly from FranSurvey or you can receive the reports free of charge from many of the franchise companies surveyed.