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 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 their 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 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 Self-Sufficiency, to collecting, analyzing, comparing, and producing standardized reports such as custom research projects, and FUND or BCR reports for franchisors and suppliers, FRANdata stands alone with the capability,objectivity, and trustworthiness needed to complete such work well.

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