Survey Results 2013: Franchisees' Research Behavior

The latest survey of Franchise Direct, an Internet source for franchise information, shows how franchisees think when they have to decide on a franchise.

The survey is anonymous and shows the opinion of representatives of various age, gender, ethnicity, level of education, and professional background. The same questions are asked to 558 selected participants via the Internet. Although this may not serve as a sample of how the population thinks, it gives us an overall idea what entrepreneurs look for in a franchise business.

In a previous article we gave you the most popular answers to the question why entrepreneurs choose to invest in a franchise. Here, we show you some of the most common ways they search information about the franchise and the franchisor.

Here is what the survey shows.

Interviewees point at online franchise directories as their most preferred source of information. Exactly 85%, or nearly 430 people, use online franchise directories for research, information, or selection of franchises.

The results of the survey show where franchisees search for information.

Nearly 60% of the interviewees rely on the company’s website to find information, followed by 28.7%, or 145 people, who prefer to read specialized magazines. Over 100 people trust the advice of friends or relatives and only 67 of the 558 interviewees use the assistance of franchise consultants.

Approximately 16% find franchise expos and conferences a useful source of information. Nearly 370 people answered positively on the question whether they have attended an expo or a trade show.  The majority of participants in the survey find it more convenient and are more likely to attend an event if it is around the city /44.4%/ or within the state /24.7%/ where they live. Less than 100 of the interviewees would go to an event in a different state.

The survey shows that the majority of entrepreneurs usually look up additional information for less than five franchises before deciding. Over 40% of them explore less than five options all together. For the rest, it takes between five and ten franchises /33.2%/ or more /16.7%/ before they make their choice.

The survey also shows entrepreneurs who consider buying a franchise would like to do it in the near future. Approximately 223, or 40%, of the people surveyed say they want to become franchisees in less than six months. The rest of the interviewees would like to wait between six and twelve months /156/ or between 12 and 18 months /60/. 

This pie chart shows the answers to the question how soon are franchisees willing to wait to buy a franchise.