Page 1

 

State  of  Franchising  in  Maine   Franchise  Business  Review  –  January  27,  2014     With  3,674  franchise  businesses  operating  in  the  state1,  franchising  is  alive  and  well  in  Maine.  Franchise   Business  Review,  a  market  research  firm  based  in  Portsmouth,  NH,  recently  conducted  independent   satisfaction  surveys  with  a  broad  sampling  of  58  current  franchise  owners  (franchisees)  operating  in  the   state,  representing  both  small  and  large  companies  from  33  different  franchise  brands.  This  research   was  conducted  by  Franchise  Business  Review  between  January  2012  –  June  2013.      

Key Findings     Franchisee  Satisfaction   In  general,  franchisees  rate  their  satisfaction  with  operating  a  franchise  business  extremely  high.  The   vast  majority  of  franchisees  (94%)  indicate  that  they  enjoy  operating  their  franchise  business,  and  nearly   nine  out  of  ten  (86%)  enjoy  being  part  of  their  franchise  organization.  Overall,  eight  in  ten  respondents   (78%)  say  they  would  recommend  their  franchise  brand  to  other  perspective  franchisees  looking  to   invest  in  a  business.     Franchisor  Leadership  Ratings   Franchisees  give  their  franchisors  high  marks  in  the  areas  of  leadership  and  core  values.  The  vast   majority  (78%)  indicate  that  they  respect  their  franchisor  (the  corporate  entity).  Most  franchisees  (77%)   believe  that  their  franchisor  operates  the  brand  with  a  high  level  of  honesty  and  integrity,  while  more   than  three  quarters  (82%)  indicate  that  their  franchisor  cares  about  their  success  as  a  franchisee.       General  Franchisee  Statistics   § § § § § § §

94% enjoy  operating  their  franchise  business   86%  enjoy  being  part  of  their  franchise  organization   82%  believe  that  their  franchisor  cares  about  their  success   78%  respect  their  franchisor  (the  corporate  entity)   78%  would  recommend  their  franchise  brand  to  others  (perspective  franchisees)   77%  believe  their  franchisor  operates  with  a  high  level  of  honesty  and  integrity   74%  trust  their  franchisor      

                                                                                                                      1

Figure  based  on  data  from  the  International  Franchise  Association,  Washington,  DC.  www.franchise.org  

Franchise Business  Review    |    125  Brewery  Lane,  Suite  5,  Portsmouth,  NH  03801    |    603.433.2270    |    FranchiseBusinessReview.com     ©2014  Franchise  Business  Review.  All  rights  reserved.  


Key Strengths  for  Franchise  Companies   § § § § §

Senior management  promotes  a  clear  vision  for  the  company  (97%  positive  rating)   Fellow  franchisees  are  supportive  of  each  other  (95%  positive  rating)   Operations  and  systems  (86%  positive  rating)   Company-­‐wide  communications  (86%  positive  rating)   Training  and  support  programs  (80%  positive  rating)  

Key  Areas  for  Improvement  Opportunities  for  Franchise  Companies   § § § § §

Advertising, marketing  and  promotional  programs  (24%  of  franchisees  rate  average  or  poor)   Franchise  fees  are  fair  (20%  rate  disagree  or  strongly  disagree)   Innovation  &  creativity  of  the  brand  (13%  rate  as  average  or  poor)   Company-­‐wide  communications  (13%  rate  as  average  or  poor)   Current  financial  picture  (11%  rate  as  weak  or  very  weak)    

Franchise Ownership  Tenure  (How  long  have  you  owned  your  franchise  business?)   § § § §

Less than  2  years   2  –  5  years   6  –  9  years   10+  years    

12% 12%   25%   51%  

Units /  Territories  Owned  (number  of  business  locations)   § § §

Single unit  /  territory   83%   2  –  4  units  /  territories   14%   5+  units  /  territories   3%  

Market  Size  of  Business  Location   § § § §  

Small (Under  100K  population)     Medium  (100K-­‐249K  population)   Large  (250K  –  499K  population)     Major  Metro  (500K+  population)  

54% 32%   4%   10%  

Franchise Business  Review    |    125  Brewery  Lane,  Suite  5,  Portsmouth,  NH  03801    |    603.433.2270    |    FranchiseBusinessReview.com     ©2014  Franchise  Business  Review.  All  rights  reserved.  


Average Hours  Worked  per  Week   § § § § §

Less than  30  hours   30  –  40  hours/week   40  –  50  hours/week   50  –  60  hours/week   60+  hours/week    

3% 13%   35%   30%   19%  

General Franchisee  Demographics   § § § §

Median age  55  –  64,  while  less  than  4%  are  34  or  younger,  and  56%  are  over  55  years  old   94%  are  Caucasian   Two-­‐thirds  (67%)  are  male-­‐owned  businesses,  20%  are  female-­‐owned  businesses,  while  an   additional  12%  report  being  equal  male/female  partnerships   80%  hold  a  college  degree  

Pre-­‐Tax Income     § § § §

Median pre-­‐tax  income  for  all  franchise  owners  is  $50,000  –  $75,000.   Average  pre-­‐tax  income  for  all  franchise  owners  is  $103,333.   27%  of  all  franchise  business  owners  report  earning  an  annual  pre-­‐tax  income  of  over  $150,000.   67%  view  the  long-­‐term  growth  opportunity  of  their  business  to  be  strong  or  very  strong,  while   another  30%  rate  the  long-­‐term  growth  opportunity  of  their  business  as  moderate.  

About  Franchise  Business  Review   Franchise  Business  Review  is  a  national  franchise  market  research  firm  that  performs  independent   surveys  of  franchisee  satisfaction  and  franchise  buyer  experiences.  The  firm’s  services  include   commissioned  franchise  research  projects,  as  well  as  industry-­‐wide  studies  of  franchisee  satisfaction.   Franchise  Business  Review  is  headquartered  in  Portsmouth,  NH,  and  can  be  reached  at  (603)  433-­‐2270.   Visit  www.FranchiseBusinessReview.com  for  more  information.     Any  use  of  these  data  points  should  be  sourced  to  Franchise  Business  Review.    

Franchise Business  Review    |    125  Brewery  Lane,  Suite  5,  Portsmouth,  NH  03801    |    603.433.2270    |    FranchiseBusinessReview.com     ©2014  Franchise  Business  Review.  All  rights  reserved.  

State of Franchising Maine  

With 3,674 franchise businesses operating in the state , franchising is alive and well in Maine. Franchise Business Review, a market researc...

Read more
Read more
Similar to
Popular now
Just for you