Prospective Franchisees Use Franchise Survey System to Research Franchise of Interest

In a recent article “Want to Buy a Franchise? See What Survey Says” Richard Gibson explains that potential franchisees now have a new way to research what current franchisees in the company have to say about the franchise. 

Franchise research companies such as Franchise Research Institute and Franchise Business Review have started a franchise survey system that allows franchisees to anonymously rate different aspects of the franchise system they are currently a part of.  This gives the franchisees the opportunity to express their feelings about the franchise whether it is good or bad without the franchisor knowing what was said.  This helps avoid franchisees from being disciplined or treated differently for their honest opinion of the franchise and the way it is run.

For franchisors franchise survey systems can help their business in two ways.  If a franchise orders for a survey to be conducted for their franchise all of the franchisees will be asked a set of questions regarding their opinion on different aspects of the franchise then the surveys are combined and a report with a score is given to the franchisor.   The results of the survey will help determine if the franchise is being run properly and it is reflected throughout the franchise or if there is need for improvement.  If there is need for improvement the franchisor will be able to determine what area needs to be rectified to make their franchise more productive and keep their franchisees happier.  If a franchise scores well on the franchise survey it will help attract more potential franchisees to their company. 

Franchise surveys are a very useful tool in the initial stages of searching for the “right franchise” but should not replace the proper steps of due diligence.  Rather it should be one step of many in your process of due diligence.  Those looking to purchase a franchise can use this tool in their beginning stages of research when they are scoping out franchises.   If you decide that this could be the right franchise for you the next step you should take in your process of conducting due diligence is contact existing franchisees in the franchise you are interested in.  This will help you get a more in depth, personal opinion of the franchise from someone who can let you know firsthand what they experience being a part of the franchise.   For more information on conducting the initial steps of due diligence read “Three Initial Questions that You Should Ask Existing Franchisees before Buying a Franchise” by franchise lawyer Charles Internicola.