Australia's franchisors optimistic as top 10 franchise systems revealed on topfranchise.com.au

Written on the 30 November 2010

Franchisors remain optimistic about growth, with 7 in 10 franchisors feeling they will recruit more in the coming year according to research house 10 Thousand Feet. Now into its third edition, the 2010 release of 10 Thousand Feet’s Franchisor Expansion Study tracking report shows that franchisors optimism is getting close to 2007 levels prior to the GFC. 68% of franchisors believe they will recruit more new Greenfield franchisees in the next 12 months in comparison to the last 12 months. This fares better than 65% in 2009 and is edging back to the 69% recorded in 2007.

And according to Head of Intelligence at 10 Thousand Feet, Ian Krawitz, there are strong indications that franchisees are more optimistic as well, as 10 Thousand Feet have just announced the results of their biannual topfranchise.com.au review of franchisee satisfaction. Krawitz said ‘Franchisees willingness to recommend their franchise system is a key indicator of satisfaction and we have seen a 4% rise in sentiment in the past 12 months.”

The awards encompass franchise systems that have elected to have their franchisees surveyed and rates the best performers according to how satisfied their franchisees are. Topfranchise have surveyed over 2000 franchisees (from over 80 franchise systems) across Australia in the last two years. In this latest survey, it is Mortgage Broker Smartline Personal Mortgage Advisers who have again taken out the top gong. Smartline, with over 200 franchisees, was joined by fellow Mortgage Broker, Mortgage Choice, who with more than 300 franchisees, remained high in the top 10, taking out fourth position. Second place went to custom sign design business Signwave. With 20 local Australian franchisees part of a 500 strong network globally, Signwave’s continued improvement in supporting their franchisees and achievements in getting their franchisees record resale prices have seen them move up another two places and now into second place overall. Perennial achiever Mrs Fields Cookies took out third spot. With 27 outlets in Australia, part of a wider network of 500 globally, Mrs Fields treat model of cookies and coffee is proving as popular for franchisees as their customers, as their franchisees
were rated as one of the most passionate about their business in the industry.

New entrants into the top 10 were Mister Minit, the key cutting, engraving and shoe and watch repair business with over 80 franchisees in Australia and New Zealand taking out fifth position; Telcoinabox, the telecommunications franchise with 46 franchisees in Australia who came in at ninth, and Gametraders, the Games retailing and trading franchise with 31 franchisees who took out 10th spot.

After making it into the top 10 for the first time in the last awards, the big mover continues to be Snooze, who improved 4 spots and took out sixth position. The key to Snooze’s continued march up the rankings was the support they provided to their franchisees and an increase in the salary franchisees felt they could take home . Snooze’s Managing Director Simon Beaty said “That franchisees have rated the mentoring and guidance they receive from us 57% higher than they did 18 months ago is a great testimony to the hard work that the franchise support team have put in and the collaboration with franchisees to make Snooze a strong profitable business.”

Others to perform well and make the top 10 were Mr Rental, who performed strongly in providing franchisees a good lifestyle to their 60 franchisees across Australia and 20 in New Zealand, and trade favourite Snap-on Tools, a 150 strong group of franchisees in Australia, part of a global 4,000 who performed strongly in giving their franchisees a good financial payback.

But the big winner was Smartline, who took out a record 7 out of 9 of the awards on offer. Managing Director at Smartline, Chris Acret, said “To pick up the overall award last time was fantastic but to have improved in key areas we had targeted and to also take out the Financial category for the first time shows our strategy of adding new products to our model to include life insurance and other personal risk insurance has really paid off for our franchisees.”

The most keenly contested category was Passion with just 0.05% separating Smartline from Mrs Fields. Managing Director of Mrs Fields, Andrew Benefield, said, “Franchisees passion for our business is just fantastic. I have been around the franchise industry for over 22 years now in various different types of franchise businesses from petrol and convenience retailing to business to business services and I’ve never been part of such a passionate optimistic group of franchisees.”

Mrs Fields were also one of the big improvers in a single area, coming second in the top improvers award with a 38% improvement in the support area of franchisees rating the value of their royalty fees. Mrs Fields were beaten to the improvers awards by fellow coffee based business Muzz Buzz Drive through coffee, whose 27 franchisees rated Muzz Buzz 45% higher than the past survey for their ability to take a larger salary from their business than they could receive elsewhere. CEO at Muzz Buzz Steve Pynt said “Our franchisees are starting to be in the right place at the right time. In addition to our innovative marketing strategies, the market for drive through coffee has matured so much of late, that our groups comparative revenue growth has been in double digit growth over the last five years, and that exponential growth in the market is starting to pay significant dividends to our franchisees.”