If you cannot measure it, you cannot manage it, with this view in mind, The Franchising World carried out a survey over Franchise Satisfaction Index to measure how education franchisee rate their franchisors in terms of training, marketing, and operationa
Education remains the business of the nobles and an investment by the wise. Education concepts have a mass appeal and diverse acceptability which also enables easy replication. Hence, no surprises that education and training franchising constitutes 32 per cent of the total franchising activity in India. Of the total 1200 franchisors, over 390 are education franchisors. It is thus, essential to facilitate the franchisor to realise the gap in their franchise systems and align resource towards better business prospects.
The Franchising World magazine, a premier publication by Franchising India Holding Ltd conducted a franchisee survey to calibrate the satisfaction levels of education franchisees which will enable both the franchisee and the franchisor sustain future profitable relationships.
Franchisee satisfaction Index (FSI)
Franchisee satisfaction Index is the measure of franchisees satisfaction from the present franchise systems as well as an indicator for the level of optimism for future benefits.. The index constitutes four indicators; Franchise System Indicator, Marketing Support Indicator, Training Support Indicator, and Franchise Confidence Indicator. It is a comprehensive rating scale which franchisees rate their franchisor as well as his franchise infrastructure on a five-point scale over 30 different parameters.
The sample for the study consisted of 75 education franchisees across nation’s diverse geographies from mainly three categories i.e., basic education, skill training, and coaching classes and tutorial. The profile of education franchisees has been a mixed one with people both with (54 per cent) or without (46 per cent) education backgrounds venturing into education entrepreneurship. It was also observed that on an average, an education franchise took one to three years to become profitable.
Education franchisee satisfaction index performance
The survey concluded that the education franchisees are fairly contented with their franchise infrastructure. Over all, franchisees rated their franchisors 3.7 on a scale of 1-5 (1-poor and 5-excellent).
The individual indicator performance is as follows:
Scope for improvement
A keen observation is that most of the franchisees who participated in the survey had huge respect for education as a business venture.
The survey tried to explore the gap between the franchisee-franchisor to identify the crucial areas that could be worked upon to facilitate the evolution of healthy franchise. Of the most education franchisees surveyed, 48 per cent believed local as well as regional marketing is one area which has the most scope of improvement (SFI). Another 24 per cent of the sample believed that hiring as well as training is another area which has a significant SFI. It was also observed that franchisor can improve its systems in the area of finance and accounting five per cent, eight per cent operations, five per cent sales, and customer service nine per cent. Thus, survey strongly recommends education franchisors to work on their marketing and local promotions in order to bring out profitable synergies.