Australian Franchises

Franchisee satisfaction survey show early signs of economic recovery

Written on the 4 August 2009 has today released the results of its third quarterly review into the satisfaction of Australia’s franchisees, revealing interesting changes in the franchising industry, with a strong rise in satisfaction in the mortgage franchise sector.

Franchisee satisfaction ratings for financial services businesses have recovered and even improved their performance, with three major players in the mortgage franchise sector climbing the ladder within and into the top 10. ANZ Mobile Lending moved from rank 10 to rank 7, Mortgage Choice progressed from its position as the number 9 company to rank 4, and first time surveyed franchise company Smartline Personal Mortgage Advisers claimed the title as Australia’s new number 1 company in franchisee satisfaction.

The housing and mortgage sectors are leading indicators for the greater economy. Ian Krawitz, Head of Intelligence 10 THOUSAND FEET and founder of, said the increase in franchisee satisfaction in the mortgage sector is an interesting indication that the Federal Government's first home owners scheme has at least stabilised the sector in the short run. “It is yet to be seen whether the government initiatives will pay off in the long run but the first home owners grant has definitely benefited mortgage providers that specialise in home loans to first home owners so far, and has improved sentiment that the middle market for home buyers will pick up as well.“

While ratings in the area of rewards did not see a significant increase in the mortgage franchise sector or the franchising industry as a whole, lifestyle and passion continued to increase.

“Indications are that the ship is starting to turn towards economic recovery, yet momentum against that turn remains, with very few businesses currently in the position to generate greater financial rewards than a year ago. It is not surprising that we didn’t see improvements in the rewards category for this update, and I don’t expect to see major movements in the next update of either. At the same time, the number of franchisees saying that they will renew their agreement beyond the current term remains high, which is a reflection of the continuing instability in the labour market. Franchisees know that salaried employees are fighting for their existence just as much, if not more, than they are, but as a business owner, they have greater control over their professional future,” said Krawitz.

“The other side of the coin is that in times where growth in monetary rewards is low, people look for satisfaction in other areas of their life. This is reflected in the increase in satisfaction with lifestyle among franchisees across the franchising industry.”

In the area of lifestyle Xpresso Delight, a set and forget coffee vending business, remains the number 1 choice for those looking for a good lifestyle business, closely followed by mobile car cleaning and detailing business Car Care and appliance rental service Mr Rental. Among this quarter’s most passionate franchisees are those of mortgage franchise Smartline’s, cookie retailer Mrs Fields’ and sleep specialist Snooze’s.

This quarter’s overall top 10 franchise systems in franchisee satisfaction in Australia as voted by their franchisees are as follows:

Top 10 Franchises in Australia in July 2009

(Source: )

RankCompany NameUnitsSector
1Smartline Personal Mortgage Advisers220Mortgage
2Mrs Fields17Food
3Car Care90Mobile/Auto
4Mortgage Choice300Mortgage
5Xpresso Delight98Coffee
6Snap-on Tools151Mobile/Auto
7ANZ Mobile Lending168Mortgage
8Mr Rental60Retail
9Just Better Care16Health
10Fernwood Women’s Health Clubs77Health

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