Franchisees at 2017’s Top Franchises Share Their Thoughts About Franchising

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Only 200 franchise brands were ranked high enough by the franchisees who own them to make Franchise Business Review’s 2017 Top Franchises list. Details about the franchises as well as what to look for in a franchise, things to consider prior to investing in one, funding sources , and advice for successfully running your franchise are within Franchise Business Review’s free Guide to Today’s Top Franchises.

Franchises that survey their franchisees realize that transparency and openness contributes to a trusting relationship

“Franchises that survey their franchisees realize that transparency and openness contributes to a trusting relationship,” says Eric Stites, CEO of Franchise Business Review. “Franchisee satisfaction ratings show you whether or not a franchise opportunity is really as good as it appears and fits your values and vision by providing insight into a system’s culture, training, leadership, financial outlook, franchisee community and much more.”

The brands that made Franchise Business Review’s 2017 Top Franchises list were selected based on survey data obtained from over 30,000 franchisees representing more than 334 brands over the past 18 months.

The brands that made Franchise Business Review’s 2017 Top Franchises list were selected based on survey data obtained from over 30,000 franchisees representing more than 334 brands over the past 18 months. Franchisees answered 33 questions ranking their franchise system in the areas of financial opportunity, training and support, leadership, operations and product development, core values (e.g., honesty and integrity of franchisor), general satisfaction, and the franchisee community. An additional 16 questions asked franchisees about their market area, demographics, business lifestyle, overall enjoyment running their franchise, and role in the franchisee community.

Below are some of the key findings from Franchise Business Review’s research for its 2017 Top Franchises list. An interesting conclusion from the data is that satisfaction of franchisees is not tied to how much income they make.

 

Franchisee Satisfaction Snapshot

– I enjoy operating this business (Yes) – 89%

– I enjoy being part of this organization (Yes) – 87%

– I respect my franchisor (Yes) – 84%

– I believe my franchisor acts with a high level of integrity (Yes) – 81%

– Overall satisfaction with franchise (Good + Very Good + Excellent) – 81%

– Would “do it again” knowing what they know today (Yes) – 89%

– Satisfied with franchisor and the opportunity provided (Yes) – 88%

– Would recommend their franchise brand to others (Yes) – 81%

– Is meeting financial expectations (Agree + Strongly Agree) – 60%

 

Top Five Sectors With Highest Average Income

  1. Food
  2. Real Estate
  3. Automotive
  4. Education
  5. Senior Services

 

Top Five Sectors With Highest Satisfaction

  1. Real Estate
  2. Sports & Rec
  3. Advertising & Sales
  4. Financial & Tax
  5. Child Services

 

Median Initial Investment for Top Five Sectors With Highest Average Income

Food                                          $433,000              (average pre tax income $99,400)

Real Estate                              $267,000              (average pre tax income $132,000)

Automotive                             $247,000              (average pre tax income $100,000)

Education                                $177,700              (average pre tax income $106,000)

Senior Services                       $102,000              (average pre tax income $111,000)

 

Median Initial Investment & Average Income for Top Five Sectors With Highest Satisfaction

Real Estate                               $267,000              (average pre tax income $132,000)

Sports & Rec                            $113,000              (average pre tax income $82,000)

Advertising & Sales                $70,000                 (average pre tax income $90,000)

Financial & Tax                       $67,000                 (average pre tax income $52,000)

Child Services                          $51,000                 (average pre tax income $52,000)

 

In 2017 Franchise Business Review is releasing 13 unbiased and free franchisee satisfaction research reports, which focus not just on the franchise brands with the highest franchisee satisfaction, but practical advice and insight from both franchisees and franchisors regarding franchising. The reports will focus on a variety of sectors including Food & Beverage, Low-Cost, Automotive, and Fitness. All will be available for free online FranchiseBusinessReview.com.

For deeper insight regarding franchisees’ thoughts about franchising, read Franchise Business Review’s Franchisee Insight columns. Each features a revealing Q&A with a franchisee.

As the Editorial Director at Franchise Business Review, Emma Pearson reports regularly on today's top franchise opportunities and the latest trends in franchising. She also writes and oversees the publishing of Franchise Business Review's annual Top Franchises, Top Low-Cost Franchises, Top Franchises for Veterans and many other specialized franchise reports. They feature the only lists of top franchises based on feedback from those who know best - the franchisees who own them.

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