Franchise
Ratings

The Australian Franchise Rating Scale™ provides an independent and objective tool to help prospective franchisees, and their advisors, compare franchise systems.

A focus on Performance and Transparency

FRANdata now offers an objective rating system for Australian franchise brands. This rating system recognises that renewed and enduring confidence in franchising requires a focus on performance and transparency.

What are the ratings based on?

FRANdata has built a set of standards to enable a consistent evaluation of Australian franchise systems. The foundation of these standards is the objective measurement of performance across critical areas of a franchise system. The performance outcome metric is a graduated star rating scale (with five being the highest).

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Franchise Rating Scale

The Franchise Rating Scale™ is underpinned by seven performance standards which include:

System Performance
Franchise Financial Performance
Franchisee Engagement and Satisfaction
Franchiser Training and Support
Franchisor Financial Performance
Lender Relations
Compliance and Assurance

Which brands are rating highly on the Australian Franchise Rating Scale™

Approach

Franchise systems provide an initial information pack to FRANdata including:

  • An agreed number of Disclosure Documents
  • Current Franchise Agreement
  • Franchisor Financial Statements
  • Current Organisational Chart

FRANdata visits support office and interviews senior personnel to review

  • Information already provided
  • Franchisee financial performance
  • Establishment and recruitment practices
  • Franchisee engagement and satisfaction

FRANdata reviews and assesses information including:

  • Integrity and accuracy
  • Input of information into base scoring model
  • Customisation of model for industry and scale factors
  • Initial assessment and QA review

FRANdata provides indicative rating to participating franchise system:

  • Individual star rating for each category
  • Overall Star Rating
  • Key strengths and development opportunities
  • Time frame for the receipt of any agreed additional input

FRANdata offers franchise system a 12 month “utilisation license” including:

  • Rights for franchise systen to publish outcome
  • Rights for franchise system to utilise on marketing materials
  • Authority for FRANdata to publish and utilise brand logo
  • Period of license

Frandata Pricing

1. Assessment Fee

$5,000

  • This covers FRANdata’s confidential review and storage of information, onsite visit, rating assessment, review and finalisation of the assessment.
  • Note fee is ex GST
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2. Annual License Fee

$1,200

  • This optional fee enables the rated brand to publicise its rating and utilise any associated logos to promote its outcome for a twelve month period.
  • Note fee is ex GST
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3. Renewal Fee

$5,000

  • This fee covers a review (which is required at least annually) to confirm the accuracy of the rating and to be offered a further ($1,200) license agreement.
  • Note fee is ex GST
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FRANdata and Franchise Ratings

FRANdata has an established and strong track record of rating franchise systems. For example, we supply the methodology that the US Forbes publication uses to compile its annual best and worst franchise list, we created the three tiered recognition system required to participate in the US Veteran program and we built the Franchise Underwriting (FUND) score model relied upon by the US franchise lending community.

For further information please contact:

Darryn McAuliffe
Telephone: 02 8346 6093
Email: [email protected]

Help your brand stand out in a crowded and often confused market

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