Are you making any of the Franchise Field Audit Mistakes? If you want to learn about some solutions, check out out post on Field Audit Mistakes, along with some solutions.
Have you ever wondered about how franchisors are managing franchisee fraud? See our series of three articles:
- How to Detect Franchisee Fraud
- 4 Ways Franchisee May Commit Fraud and How to Prevent It
- How Franchisors are Managing Franchisee Fraud
We hope that you like this series. Don’t hesitate to reach out to us if you have questions!
How Does Your QSR, Fast Casual, or Full-service Restaurant Measure Up? Find out about field coaching trends including audit pass rates, coach to franchisee ratios and visit durations.
This data was collected by FranchiseBlast.
Franchise Field Audit Benchmarks
We’ve previously discussed how our franchise field audit app is a massive improvement over using paper or spreadsheets to perform franchisee field audits. We’ve seen hundreds of franchise field audit questionnaires and have been able to establish certain benchmarks:
Frequency: On average, the coach visits franchisees once a quarter.
- The frequency decreases as the average revenue per franchisee decreases, regardless of the type of unit. Restaurant snack kiosks and smaller brick & mortar retail/service visit once a year. Mobile service brands visit once ever 1-3 years, if at all (and do remote audits instead).
- The frequency increases if the stores have geographic density. If a coach can easily drive to all locations, they may visit monthly.
- Multi-unit operators (franchisees) who also utilize our software visit more frequently, sometimes weekly.
Franchisee ratio: On average, each FBC coaches 30 franchisees.
- This often means 30 units but the better way to describe it is 30 relationships. In systems with a high density of multi-unit franchisees, the coach can oversee a larger set of units.
- Unit-level economics can also impact this benchmark. If the coach visits once a year because it’s the only financially viable option, the ratio will often jump to 60 or even 100 franchisees per coach. The coach is effectively spending less time with each franchisee.
- Multi-unit operators (franchisees) typically have their district managers be responsible for 6 locations.
Questionnaire count: On average, each franchise uses six audit questionnaires, not two.
- Most franchises believe that they have a long form audit questionnaire, performed once a year, and a short form performed during every other visit. However, the average FranchiseBlast user has six active questionnaires, indicating that they find new uses for our app after they have begun using it.
- The other audits are typically store opening checklists or specific audits around the most recent marketing campaign or food safety.
Percentage passing: On average, 80% of audits pass
- Our data shows exactly 79.25%. For a franchise coaching process, this is a good ratio of difficulty without being discouraging.
- We have restructured the questionnaires of franchises with a very high ratio of passed audits to bring them closer to reality. No one is perfect and when 95% pass, the bar is too low.
- Only 61% of food safety audits pass, even though the average score is over 90%. Being flawless in food safety is very difficult. The criticality of issues generates a higher ratio of failures.
Duration: On average, two thirds of long form audits are completed within 3 hours.
- 48.5% of the audits completed on our system are done within an hour, but these include short form audits
- 85% of long form audits completed on the same day are finished within 5 hours.
We hope you found the aforementioned benchmarks interesting. If you have a specific question, please don’t hesitate to reach out!