Australian businesses will now have access to standardised performance assessment, with the release of the new FRANdata Australia objective ratings system.
Following on from successful operation in the U.S., the FRANdata Australia objective ratings system will provide a consistent evaluation of Australian franchise systems, utilising a graduated star rating scale.
All franchise businesses will be subject to assessment underpinned by seven key performance standards. The criteria includes; system performance, franchisee financial performance, franchisee engagement and satisfaction, franchisor training and support, franchisor financial performance, lender relations and compliance and assurance.
The integration of the new FRANdata Australia objective ratings system marks a positive step forward for the sector. Franchise brands will now be able to objectively differentiate themselves in the competitive market.
Additionally, the FRANdata Australia objective ratings system will bring the domestic landscape on-par with corresponding international sectors, helping to re-instil consumer confidence.
Darrell Johnson, FRANdata U.S. CEO said that the FRANdata Australia objective ratings system would greatly impact the Australian franchising sector.
“In the US FRANdata has been providing ratings systems and services for 30 years,” Johnson said.
“There are two keys to successful ratings systems – the assessment must be conducted independently, and the assessment must be objectively based on factors relevant to the decision of the prospective franchisee and others (such as financiers) involved in the transaction. The Australian franchise ratings system will bring both”.