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Tell us what you want us to research
Written on the 28 July 2009 by Lorelle Frazer
What topic would benefit you the most if we could provide some answers through franchise research?
The Asia-Pacific Centre for Franchising Excellence is launching a franchise research project and we want you to tell us which topic you’d get the most value from.
To save you time we've put together a list of potential topics, based around suggestions we've already received, so it will only take 30 seconds to vote for your top preference – we’ll then get to work to provide you with the answers.
If you have a burning issue outside the ones given below, please contact us and we’ll add it to our files for future franchise research.
Potential Research Topics:
Franchisors’ perception of break even
An Australian version of the Stanworth & Purdy (UK) study about the perception franchisors have at different stages of maturity as to the number of outlets they need before reaching break-even from their franchise operations. (ie. how many outlets do you need to survive?) In addition to segmenting by franchisor age/maturity, could also be segmented by level of investment (ie. service vs retail in price bands).
The relationship between franchising growth and unemployment
Franchising is often considered to be countercyclical, experiencing an increase in unit growth during times of high unemployment as frustrated jobseekers chose to buy their own business, but is this really the case? The research reviews franchising unit growth and compares it to Australian unemployment data.
How profitable is multiple-unit franchising?
The granting of additional franchises to existing franchises can help maintain system growth and franchisee development, but how profitable is it? Do franchisor service costs per franchised unit decrease with multiple unit franchisees, and are royalties higher or lower compared to those received from single-unit franchise owners?
Royalty fraud in franchising
What are the most common types of royalty fraud experienced by franchisors, how do they occur, and how are they detected? What are the consequences to franchisees of engaging in royalty fraud? How widespread is the problem?
Benchmarking franchisor performance
Franchise networks often benchmark the business performance of their franchisees, but there are few opportunities for franchisors to benchmark against each other. This study could look initially at what benchmarks to compare the performance of systems would be of interest to franchisors, which might include franchisee rates of return, service costs and franchisor staffing ratios per franchisees, and so on.
Understanding franchisee exit interviews
To what extent (if any) do franchisors use exit interviews to understand the reasons for franchisee departures? How effective are exit interviews in getting to the truth, what are the best methods of conducting such interviews, and when should they be conducted? How useful is the information from an exit interview in improving the system?
Recruiting to replace: How many franchisees are needed to replace annual departures?
Franchisees exit franchising every year due to sales, closures and so on. What is the average number of franchisees a franchisor must recruit every year just to replace departing franchisees, and does this differ according to service and retail franchises, or across particular industries?
Corporate vs franchised stores
Which provide the better long-term contribution to a franchisor’s bottom line and why? What is the average mix of corporate vs franchised outlets in retail systems, what is the optimal mix, and what are the trends in corporate vs franchised outlets?
Author: Lorelle Frazer