Franchisees Cari Coster Cheetwood & Derk Cheetwood (New Again Houses® Hendersonville) and Ryan Decker & Jessica Douglass Decker (New Again Houses® Murfreesboro).
People enter franchising from all walks of life and various professional backgrounds. Some utilize their existing skillset and buy a franchise within the same industry, while others seek a complete career change. As different as each individual may be, those who pursue franchise ownership share some commonalities. They see value in buying into an established franchise rather than going it alone as an independent business owner and they consider franchisee satisfaction to be an important benchmark when comparing franchise opportunities.
These aspiring franchise buyers know they can ramp up their business faster and more effectively by leveraging a recognized franchise brand with an existing following. They welcome the training, support, and well-structured business model the franchisor provides. Many franchise owners say they are inspired by the camaraderie, support, and encouragement they receive, not only from the home office but also from their network of fellow franchisees.
Franchisee satisfaction ratings provide great insight into a brand’s financial strength, culture, long-term resiliency, and the likelihood of whether a franchise owner will be happy with their decision to buy. Why? Because, in the simplest of terms, when the franchisees are happy, everybody’s happy!
If you want to know what it’s like to own and operate a franchise, ask a franchise owner. Franchisees are the ones with their ‘boots on the ground’ and their hands in the weeds of the day-to-day operations. They’ve hired staff and served clients. They’ve faced and overcome challenges. They are the true authorities on what it’s like to run the business.
Franchise Business Review (FBR) has been tracking franchisee satisfaction and performance across the franchise sector for over 18 years. Last year, franchisee satisfaction hit an all-time high with satisfaction actually increasing 3 percent over pre-pandemic levels.
According to FBR’s most recent data, franchisee satisfaction is holding steady despite ongoing challenges with labor shortages, supply chain issues, and a potential recession.
“We contacted new franchisees and those who had been open for many years with multiple territories. The franchisees we spoke with were very helpful and candid in explaining the challenges and the opportunities in this industry.”
Rebecca Rauch, Caring Senior Service Franchisee
What is FSI, and why does it matter?
Every year, Franchise Business Review surveys thousands of franchisees from hundreds of leading franchise brands to gauge franchisee satisfaction and franchise performance. The 33-question survey gathers feedback on training and support, executive leadership, systems and operations, financial opportunity, core values, the franchisee community, and overall satisfaction. From this data, a Franchisee Satisfaction Index (FSI) score is determined.
FSI is the industry standard by which the health of any franchise company can be measured and tracked over time. Established by Franchise Business Review in 2007, FSI is a collective assessment of the critical areas of franchisee satisfaction and engagement. The FSI score of a franchise is a powerful tool for evaluating franchise systems, tracking operational performance, and predicting future success.
Our annual recognition of the Top 200 Franchises (FBR 200) highlights the best franchise opportunities based on high franchisee satisfaction ratings. There are thousands of franchise opportunities available to business owners today. Although most companies claim to be the “best franchise,” our research delivers the most comprehensive list of today’s top franchise opportunities based on actual reviews from over 30,000 franchise owners across more than 300 of today’s leading franchise companies. Our Top 200 List is the best place to conduct your due diligence because the brands on this list rank highest in franchisee satisfaction.
Franchises with high franchisee satisfaction ratings typically have equally positive data in the areas of culture, finance, operations, growth, and business resiliency. Likewise, brands with poor franchisee satisfaction ratings, or those that do not measure or share franchisee satisfaction data, may pose a higher risk. Considering a brand’s franchisee satisfaction data should be part of every candidate’s due diligence.
“During my research, I reviewed franchisee satisfaction ratings and spoke with multiple franchise owners. They helped me understand what questions I should be asking of HomeWell and myself before making this important decision.”
Bruce Dincin, HomeWell Care Services Franchisee
Why Franchisee Satisfaction Reigns Supreme
The great news for those interested in owning a franchise is that there’s never been a better time to take the leap into franchising. According to our data, the franchising market remains strong and so does franchisee satisfaction.
Key Satisfaction Points from Franchise Business Owners
- 86% Enjoy operating the business
- 85% Enjoy being part of the franchise organization
- 83% Franchisees are supportive of each other
- 82% Respect their franchisor
- 82% Franchisees are supportive of the brand
- 78% Would recommend the franchise to others
For those looking to make your wealth-earning dreams come true, the average annual pre-tax income for franchise owners on our Top 200 List is an impressive $118,792.* Of course, like any new business, it takes time for franchise owners to ramp up their business and become profitable. This means if you have the drive and the financial means to get through the startup phase and follow the playbook, you have a strong chance at earning a six-figure salary.
If you’re exploring franchise ownership, the FBR Top 200 List is a great place to start. It features the highest-ranking brands for franchisee satisfaction and weeds out the rest.
*Average annual pre-tax income figures are for franchisees beyond the “startup period” who have been operating their business for two or more years. Income figures do not include any equity value of the business or other assets such as real estate, inventory, or equipment.