What’s the Big Deal About Franchise Culture?

franchise culture ratings FBR

Franchisee Satisfaction Can Greatly Impact a Brand’s Success

In the world of franchising, a company’s culture can ultimately impact how franchisees and their employees feel about their company, their roles and responsibilities, their customers, and brand. Whether positive or negative, franchise brand culture will influence its success.

Every company has a culture, whether it is strategically planned and orchestrated, or not. A positive culture can positively impact business productivity, profitability, employee satisfaction, and company growth. A negative culture can significantly reduce employee satisfaction, productivity, and profitability.

“I love that I have the full autonomy to run my business as I see fit and not be told how to run it. But I also love knowing that if I need assistance, it’s always there,” – Becky O’Meara, Gotcha Covered franchise owner

Exploring Franchise Brand vs Culture

The terms brand and culture are often used interchangeably. Both are often considered to be intangible and unmeasurable concepts. But, the truth is, both have to do with perceptions that can drive and affect outcomes. The terms are interrelated, but there are important differences. Brand has more to do with external perceptions. Culture has to do with internal perceptions. Combined, they yield quite a bit of power.

Brand is a company’s identity and personality as seen by the outside world. Great brands have great stories. Think of a company’s brand as a story that resonates with its customers–a story that people want to be a part of.

Culture is a company’s inside story. It is the behavior, dialogue, policies, values, and beliefs shared among internal stakeholders: franchisors, franchisees, and their employees. A company’s culture is the story that leadership tells and employees want to be a part of.

When customers trust a brand, they often become loyal to that brand. Likewise, when employees trust their company culture, they are more likely to be loyal to their company, responsibilities, team, and brand. Leadership drives culture. Culture drives the brand. When a franchise’s brand and culture are positive and aligned, the path to success becomes quite clear.

“Our franchise team is tirelessly supportive and very attentive to your success. But they also support you doing your business your way.” – Brain Wilson, Firstlight Home Care franchise owner

Is Franchise Brand Culture Measurable?

In franchising, a company’s leadership team establishes the culture that sets the tone for how franchisees and their employees interpret and personify that culture in everything they do. For a strong and positive company culture, leadership must identify, develop, communicate, and demonstrate their company culture in a manner that resonates with everyone. Culture is not a story to be told. It is a story to live by. That means leadership has to talk the talk and walk the walk.

How do you measure the quality of a franchise company’s culture? Surveying franchise owners is a great place to start. When given the opportunity, they will tell you how well the franchise leadership team is executing the vision and culture of the company. To determine whether a company’s culture is positive, negative, or somewhere in between, Franchise Business Review surveys thousands of franchisees to reveal the best of the best.

“On a 100-point satisfaction scale, every franchise on our 2022 Culture100 List has an FBR Culture Score of 80+,” said Eric Stites, CEO of Franchise Business Review. “This puts them in the top quartile of all franchises surveyed!”

FBR’s Culture100 List is based on franchise companies that score the highest on these 12 questions:

  1. My franchisor acts with a high level of honesty and integrity
  2. I respect my franchisor
  3. I trust my franchisor
  4. Senior management promotes a clear vision for the company
  5. Senior management encourages a strong team culture
  6. Senior management involves franchisees in important company decisions
  7. Senior management is effective in driving our company forward
  8. My franchisor cares about my success
  9. My fellow franchisees actively participate in company programs and events (conferences, regional meetings, conference calls, etc.)
  10. I enjoy being part of this organization
  11. I feel that I am a valued member of this organization
  12. Would you recommend this franchise to others?
Includes owner satisfaction report
out of 100

Kona Ice

Industry: Food & Beverage
Investment: $149,995 - $189,300 Cash Required: $20,000
Includes owner satisfaction report
out of 100

Snap-on Tools

Industry: Automotive, Services
Investment: $201,433 - $465,436 Cash Required: $44,121
Cruise ship on water city lights
Includes owner satisfaction report
out of 100

Cruise Planners

Investment: $2,295 - $23,465 Cash Required: $10,995