Best Practice Guidance and Strategic Implementation

Performance Benchmarking


The franchise business model is built on uniformity and conformity.  In a franchise system, every operating unit is intended to look, function, and perform like every other unit.

That uniformity and conformity provides a powerful model of performance for every stakeholder to benefit from.  Armed with properly developed comparative information, a prospective franchisee has a much better base of information from which to make a good business decision.  With good comparative information on the success rate of a franchise system and the underlying drivers, a lender can reasonably predict the likelihood of getting its money back over time.


Franchisors also benefit from well-designed competitive and comparative information. Regardless of the industry a franchisor operates in, it has the same functional responsibilities as every other franchisor.  Those functions cut across prospect screening, franchisee training and support, site selection and pre-opening support, marketing, technology, compliance, legal and more.  With thousands of franchisors operating with an identical set of functional responsibilities, opportunities to benefit from best practices and benchmarking are everywhere.

The key challenges to performance benchmarking are having standardized performance terms, information that is consistent with those terms, and a reliable means of collecting, analyzing and evaluating such information.  That, in a nutshell, is what FRANdata brings to the franchise business model.  From defining terms such as Continuity Rate, Projected Unit Success Rate, and Recurring Revenue Self-Sufficiency, to collecting, analyzing, comparing and producing standardized reports such as FUND and BCR as well as nearly 100 custom research projects each year for franchisors and suppliers, FRANdata stands alone with the capability, objectivity and trust that are necessary to do such work well.

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