Topfranchise.com.au has released the results of a quarterly survey of Australian franchise satisfaction, and updated its list of Australia’s top 10 franchises. But the survey also reveals franchisees are growing concerned about how the downturn will affect business.The review, which incorporates feedback from over 1,000 franchisees from 65 systems, shows the downturn is having an effect, with average businesses sentiment ratings down from the last quarter. Souvlaki Hut, a casual Greek low-price restaurant, has topped the list. The company has introduced a kids eat free promotion which it says has brought families through the door.
Ian Krawitz, Topfranchise.com.au founder, says offers made by companies such as Souvlaki Hut are keys to success.
“Franchises which offer value driven products or services, such as Souvlakihut and Mr Rental; and those that offer small luxuries such as [coffee chain] Muzz Buzz are doing well in this climate,” Krawitz said.
But while satisfaction is definitely down, Krawitz says franchises are holding steady.
“This initial dip in franchisee satisfaction is in no way indicative of a loss of confidence in the franchising sector as a whole.“Passion for the business and interest in renewing franchise agreements have increased significantly as franchisees realise that they are in a good situation compared to those facing redundancy,” said Krawitz.
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Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
