Feature
Issue No. 23 - June/Nuly 2005
Franchise: method on the move
The popularity of franchising has exploded in recent years and Australians, in particular, are embracing the concept.
Australia now has in excess of 850 business-format franchise systems – an increase of over 20% in two years.1
A landmark study by Lorelle Frazer and Scott Weaven demonstrates the growth in both the number of franchisors and also the number of business-format franchised units operating in Australia.
The Frazer Weaven study constitutes the inaugural 2004 Deloitte Franchisee Satisfaction Survey – a collaborative initiative between Deloitte Touche Tohmatsu (‘Deloitte’), to inspire, Donaldson Walsh Lawyers and BDG International Pty Ltd.
US trend analyst John Naibett has calculated that, by 2012, franchising will have become the leading form of sales distribution in the world.
Franchising is seen as a logical and attractive mechanism for businesses to grow and, importantly, to have that growth funded. It also enables franchisors to penetrate markets, regions and territories much faster than they would otherwise be able to do.
Interestingly, the growth in franchising seems to be attracting a better educated, entrepreneurial, younger and more business savvy person – buying a franchise today is seen by some as a long term business career path and not just something one does to ‘buy a job’.
Those franchisors that develop a truly strategic partnering relationship with their franchisees stand to gain the most in today’s business climate.
The Frazer Weaven survey was designed as a Benchmark Survey, to be conducted biennially, providing insight into the general level of satisfaction of franchisees toward their franchise system and monitoring changes in franchisee profiles over time.
The overall key measure of the survey is franchisees’ SQ, or Satisfaction Quotient, a weighted average of their ratings on 95 statements to do with six separate attitudinal dimensions.
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