A critical, but largely unexplored indicator of franchise performance and network health is franchisee tenure – the length of time someone operates as a franchisee.
According to the Franchising Australia Survey*, franchisees stay with a system for an average of seven years. This figure was last reported in 2010, and remained unchanged from the 2004 survey.
If the average tenure of franchisees hasn’t changed over a six-year period, does this mean that growing systems are adding more new franchisees, thus keeping the average age low? Or does it mean that franchisees simply get a seven-year itch and decide to leave of their own accord? Read full post.