The Australian Franchise Rating Scale™ provides an independent and objective tool to help prospective franchisees, and their advisors, compare franchise systems.
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).
Franchise Rating Scale
The Franchise Rating Scale™ is underpinned by seven performance standards which include:
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 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: