Contract renewal rate
The proportion of franchise contracts reaching their expiry that are renewed by existing franchisees. It is one of the most reliable indicators of network health and long-term franchisee satisfaction.
In practice
A renewal rate below 80 percent is a warning signal: it indicates either insufficient franchisee profitability or a deteriorating franchisor-franchisee relationship. The best networks consistently achieve rates above 90 percent. Before committing, any prospective franchisee should request this figure for the past five years and compare it against sector data published by the French Franchise Federation.