FRANdata’s Franchise Rating System

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:

  1. System Performance
  2. Franchisee Financial Performance
  3. Franchisee Engagement and Satisfaction
  4. Franchisor Training and Support
  5. Franchisor Financial Performance
  6. Lender Relations
  7. Compliance and Assurance
For more information on the Frandata Franchise Rating ScaleTM, please watch the below videos.

The Franchise Rating Scale

The 3 common questions asked about the The Franchise Rating Scale

The Franchise Rating Scale, 7 System Performance Standards

 

What is the process?

Stage 1

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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

Stage 2
Senior FRANdata personnel call at franchisors premises to:

  • Clarify any components of Stage 1
  • Review unit performance (process, systems, and available sample data)
  • Gain a high level overview of key compliance and assurance programs
  • Review approach, frequency, and insights from franchisee engagement programs
  • Conduct on site interviews

Stage 3
FRANdata undertakes an objective and rigorous review of the information provided against its measurement framework which culminates in a performance outcome (rating).

Stage 4
FRANdata provides an indicative rating on a confidential basis and allows a short window for the submission of additional supporting information.

Stage 5
FRANdata finalises rating and provides a utilisation license.

Initial Cost

Part 1 – Review and Assessment $1,750 (plus GST)
This covers FRANdata’s confidential review and storage of information, onsite visit, rating assessment, review and finalisation of assessment.

Part 2 License Fee $1,200 (plus GST).
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.

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 Vetfran 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]

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