Australia's Top 10 Franchise Systems Revealed

Written on the 24 May 2010

Topfranchise.com.au’s bi-annual review into the satisfaction levels of Australia’s franchisees has revealed that being part of a franchise group has paid dividends over the course of the last year with a 5% increase in franchisees belief that they will be able to sell their business for a good return on investment.

Now into its second year, topfranchise has surveyed over 2,000 franchisees (from over 65 systems) across Australia in the last two years. The big winner was again franchisees of Smartline Personal Mortgage Advisors. Smartline took out the number 1 position for the second survey running. With 200 plus franchisees Smartline’s achievement should receive special mention. Smartline grew their network from 140 advisors to in excess of 200 advisors by acquiring West Australia’s Mortgage Force in the last 12 months and managed to successfully integrate the two businesses to still have the most satisfied franchisees in Australia. The big mover was also from the Mortgage industry. Mortgage Choice with over 300 franchisees has undergone a range of improvements since its last survey to move into the no 2 position, there focus in improving in key areas has been reflected in the popularity of their system with 7 times the number of new franchisees starting with the business this financial year in comparison to last financial year and their overall satisfaction rating increasing by 22%.

In accepting the Number 1 award Chris Acret, the Managing Director and Founder at Smartline said “The great thing about the topfranchise award, is that the result comes straight from the mouths of our franchisees and is validation for the great team work that exits between our support team and franchisees.”

New entrants to the top 10 for the first time were fast food company Chooks Fresh and Tasty, a cheeky West Australian brand with 34 outlets, now moving into the East Coast with 6 stores in Queensland and Tasmania who performed well in delivering financial returns to their franchisees and bedding company Snooze, with 70 outlets, part of the Steinhoff Asia Pacific Group.

Ian Krawitz, Head of Intelligence at 10 THOUSAND FEET and founder of topfranchise.com.au said “It has been great to see franchisors improving in key areas of financial guidance and helping their franchisees get a better return on investment. Snooze making the top 10 has been a great example of this and is evidence of what happens when a franchisor takes the time to listen and places importance on the strength of their relationship with their franchisees. Snooze has seen a 72% increase in their franchisees willingness to recommend the business over the last 12 months, and that is a testimony to new Managing Director Simon Beaty and his team at Snooze who have focused on improving their franchisees financial returns through better financial guidance”.

Snooze’s remarkable improvement in the last 12 months was off the back of a 35% improvement in franchisees rating of their ability to get a good return on Investment and a 50% increase in their rating of Snooze providing ongoing financial guidance to help franchisees operate profitably.

Financials are not the only area of consideration in franchisee satisfaction. The topfranchise.com.au survey takes into account seven different indicators of franchisee satisfaction. Some of the stand out franchisors in key categories were Xpresso Delight, with 111 franchisees in the mobile coffee business in Australia and NZ, enjoying the second highest rating for lifestyle, only second to high achievers Smartline. Snap-on Tools a 150 strong group of franchisees in Australia, part of a global 4,000, had the second most passionate franchisees second in the area of Passion to Smartline and Mortgage Choice who improved their support of their franchisees significantly to take out second place in the area of Franchisee Support, again second to the outstanding Smartline.

Other quality systems to make the overall top 10 by performing consistently well across key categories were food businesses Bakers Delight, with over 600 outlets, Australia’s biggest franchise group to make the top 10 and Mrs Fields an up and coming group with 25 outlets in Australia, part of a wider network of 500 globally. Other non food based businesses to score consistently well across all key categories were Signwave, a custom sign design business with 19 local Australian franchisees part of a 500 strong network globally and Mr Rental, another homegrown Australian success story to benefit from an economic downturn growing to over 80 retail outlets in Australia and NZ as the demand for renting computers, whitegoods, electrical and now furniture has boomed thanks to a slower economy.

Topfranchise.com.au is a free resource for potential franchisees. Research house 10 THOUSAND FEET started the annual franchise channel review 2 years ago. Potential franchisees can review the best performers in key categories and 10 THOUSAND FEET have made available a special download of questions potential franchisees should be asking when they are reviewing any franchise systems quality, go to http://tinyurl.com/keyfranchisequestions