7 KPIs every franchise network should track to improve performance
In many franchise networks, KPIs (Key Performance Indicators) are treated like a simple scorecard reviewed during the monthly performance meeting. People look at the numbers, comment on them, then file the report away… until the following month.
But a franchise network can no longer afford to just track numbers. KPIs are not a dashboard — they are a steering wheel. They reveal weaknesses, highlight priorities and accelerate decisions. High-performing franchise networks don’t ask: “What are my numbers?” They ask:
“What action should I take now that I have these numbers?”
Here are the 7 essential KPIs every franchise network should track — and how to use them as levers for performance.
1. KPIs related to unit profitability
The franchise’s first responsibility is to provide a profitable and duplicable model. Tracking average revenue, gross margin or average basket size is not about observing performance — it’s about identifying gaps and understanding why they exist.
Example: Two units in comparable areas show very different average ticket values:
Franchise A: €14
Franchise B: €9
Customer traffic is not the issue. The difference comes from upselling ability. This KPI triggers targeted action: team coaching, upsell scripts, bundled offers… Without KPIs, the analysis would remain vague. With data, action becomes precise.
2. The KPI that reveals how fast a franchise becomes profitable
Measuring profitability matters. Measuring how fast it is achieved matters even more. This KPI reveals instantly whether a new franchisee is on track — or at risk.
Example:
The brand’s target:
break-even within 6 months
Data reveals:
80% reach the target
20% need more than a year
Instead of treating it as an isolated delay, this KPI reveals structural issues (location mismatch, poor process adoption, insufficient training) and allows quick corrective action.
3. KPIs related to customer experience
Customer experience is the foundation of the brand. It is not the franchisee’s responsibility to define service quality — it must be homogeneous across the entire network. KPI examples: NPS (Net Promoter Score), complaint rate, customer satisfaction.
Example: A unit scores an NPS of 28, while the network average is 64. Analysis shows the waiting time is twice as long as in other locations.
This KPI allows the franchisor to intervene before local dissatisfaction harms the brand.
And that’s the paradox — and vulnerability — of franchise networks:
When the promise is kept, one positive experience benefits the entire brand. A customer satisfied in Lille is likely to visit a store in Marseille expecting the same experience.
But when the experience is disappointing, the entire brand suffers. To the customer, it’s not one bad franchisee. It’s a bad brand.
In franchising, a local customer experience can strengthen... or weaken the entire brand.
4. KPIs that measure franchisor performance
Many franchisors track unit performance… but fail to measure their own performance. Yet they are accountable to franchisees, the board, and future candidates.
Key KPIs include:
Franchisee acquisition cost
Lead-to-signed franchisee conversion time
Example:
A marketing campaign costs €10,000 and results in 2 signed franchisees.
→ Apparent acquisition cost: €5,000 per franchisee.
But this is incomplete.
During the entire recruitment process (calls, visits, DIP, financial analysis…), the brand continues to invest:
monthly marketing spend,
development team resources,
digital tools (CRM, candidate funnel, etc.).
The longer the recruitment cycle, the higher the real cost.
Example: Monthly cost of franchise development: €5,000
If a candidate signs in 3 months → €15,000
If another signs in 12 months → €60,000
Same lead cost — radically different acquisition cost.
This KPI allows the franchisor to:
identify the most profitable channels,
shorten conversion cycles,
optimise investments.
It’s not just a financial KPI — it measures organisational efficiency.
5. KPIs related to implantation management
Supporting franchisees is not about number of calls. It’s about impact.
Visits, audits and action plans must be measured.
Example:
A field coach performs visits as scheduled, but only 30% of action plans are executed.
→ This reveals a lack of effectiveness, not a lack of presence.
A KPI should measure results, not activity.
6. KPIs related to franchisee satisfaction
A satisfied franchisee becomes an ambassador. An unhappy franchisee becomes a legal risk.
Monitoring satisfaction (surveys, event attendance, engagement level…) helps detect weak signals.
Example:
At the annual convention, only 40% of franchisees attend.
→ Not a logistical issue.
A symptom of disengagement.
KPIs turn intuition into measurable fact.
7. The ultimate KPI: contract renewal rate
There is one KPI that summarises everything: renewal rate.
If franchisees renew their contract, the model works.
Example:
A network shows an 81% renewal rate:
franchisees are profitable,
they feel supported,
they believe in the brand.
This KPI is the most reliable indicator of long-term success.
KPIs must drive decisions, not fill spreadsheets
In a high-performing franchise network:
KPIs are used to act, not to observe.
Data anticipates issues before they become problems.
Pilotage becomes objective and transparent.
KPIs are not a constraint. They are success accelerators — when used to support, not control.
