- »FRANdata Awards Five-Star Rating to the Lott
FRANdata Awards Five-Star Rating to the Lott
The four lottery brands associated with the Lott in Australia received a five-star rating from FRANdata.
The objective ratings system for Australia franchises independently assesses business performance and transparency. The Lott is the second Australian enterprise to be given a five-star rating since the ratings scale was introduced to Australia earlier this year.
The Lott Wins Ratings Lottery
As the second company to earn a five-star rating from FRANdata, the Lott can proudly say that it is a top-performing company in Australia.
Technically, each of the four associated brands of the Lott are five-star brands: a perfect score each for Tatts, NSW Lotteries, Golden Casket, and SA Lotteries.
According to Inside Franchise Business, the review team revealed that it was impressed with new initiatives from the Lott that supported the financial performance of more than 3,800 franchises.
The team also took note of the extreme investment in the professional development of the Lott’s leadership and management teams. These qualities in a company contribute to a “culture of compliance” and allows the Lott to properly and fully support their franchisees.
FRANdata CEO Darryn McAuliffe said, “The good systems are listening to their franchisees, who are listening to their customers, and are then refining and improving the model. They have addressed the financial performance of the franchisees.”
And of the particularly high rating given to the four brands of the Lott, McAuliffe added, “The higher ratings we are seeing released are from leading quality brands who value the recognition.”
The five-star rating for the Lott brands comes after the first five-star award last month that went to Quest Apartment Hotels in Australia.
What is FRANdata?
The Franchise Rating Scale is a system that has been used in the United States for 30 years. It launched in Australia in March 2019.
FRANdata uses a graduated star rating scale to evaluate franchises independently and objectively.
There are seven primary categories requiring transparency by which brands must score highly in order to receive a five-star rating.
- System performance
- Franchisee financial performance
- Franchisee engagement and satisfaction
- Franchisor training and support
- Franchisor financial performance
- Lender relations
- Compliance and assurance
The company must be pay for the review and assessment. Then, there is a licensing fee to promote the final rating, if it chooses to do so.
A franchisor like the Lott must provide specified disclosure documents, franchise agreements, financial statements, and an organizational chart.
Then, FRANdata personnel visit the franchisor’s premises to clarify initial findings, review on-site performances and compliance programs, witness franchisee engagement programs, and conduct on-site interviews with employees.
The FRANdata staff then begins an objective and serious review of the information in its possession. They compare it to a measurement framework. This results in a rating that reflects the overall performance of the company.
The company receives the rating confidentially. The company then has the opportunity to submit additional information if desired.
When the rating is complete, the license becomes available.
Benefits for the Lott
It is certain that the Lott will be able to use the 5-star rating to promote its business practices. It will aid in garnering more franchisees and reassuring current ones that the Lott is performing at a high level.
The Lott is already Australia’s largest franchise system with more than 3,800 retailers across the nation. Each receives lottery commissions, and the 2018 fiscal year saw the distribution of more than $355 million to those retailers.
In addition, the Lott contributed more than $1.7 billion to community programs and groups. This was due to its payment of state and territory taxes throughout the 2018 year.
The FRANdata rating also helps the Lott’s standing with the World Lottery Association (WLA), which holds its members to a high standard of corporate responsibility and responsible gambling principles.
The Lott already achieved a Level 4 certification from the WLA, which is the highest possible ranking.
This lets the public know that the lottery firm and all of its brands commit to responsible gambling practices. All retailers and corporate activities are involved in providing safe places to play and reminding customers of the tenets of safe gambling, as well as the resources available if issues should arise.