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).
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.
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.
3. Renewal Fee
$2,500
- 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.
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
Independent and objective information on the Australian Franchise Sector.
Level 8, 1 O’Connell Street,
Sydney, NSW, 2000