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New Zealand Franchising Confidence Index | April 2011

New Zealand Franchising Confidence Index | April 2011



Latest results from Franchize Consultants' survey of New Zealand Franchising Confidence

Latest results from Franchize Consultants' survey of New Zealand Franchising Confidence



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    New Zealand Franchising Confidence Index | April 2011 New Zealand Franchising Confidence Index | April 2011 Presentation Transcript

      • Quarterly survey of 383 New Zealand franchisors and 115 specialist service providers (e.g. consultants, banks, accountants, lawyers and publishers) to the franchising community.
      • Explores confidence in key measures critical to the success of franchising, including the wider environment, growth determinants, and franchising health attributes and franchise system growth prospects.
      • This survey represents the views of 39 franchisors and 20 service providers.
    • Please indicate whether you expect the following aspects to be better, the same or worse over the next 12 months (compared to the previous 12 months)
    • Franchisors (blue line) sentiment toward general business conditions (net -3%) has substantially deteriorated. Franchise service providers (e.g. banks, consultants, accountants and lawyers to the sector) were more optimistic (net 35%).
    • Franchisors are still generally positive about forthcoming growth prospects for their organisations (net 36%), however optimism has dampened from January (net 54%). Service providers (net 40%) shared franchisors current optimism for growth.
    • Franchisors expect access to capital to remain challenging (net -10%). Meanwhile,service providers (who include banking respondents) are considerably more optimistic (net 40% positive) for franchisors compared to January (8%).
      Franchisor expectations regarding financing have now been negative for 12 months.
    • Whilst improving marginally, franchisors expect franchisee recruitment to remain challenging (net 5% up from 3% in January 2011). Comparatively, service providers are considerably more positive in their outlook (net 45%).
    • Meanwhile, franchisor and service provider perceived access to suitable staff are aligned and firmly positive reporting net 36% and 35%, respectively.
    • Franchisors and service providers are positive, although less optimistic about franchisor access to suitable locations than January.
    • While expectations for franchisee sales levels stabilise (net 33%), franchisor expectations for operating costs (net negative -38%) and profitability (net negative -3%) both deteriorated from the previous quarter. Franchisor expectations for franchisee profitability are now negative on balance for the first time since the survey began a year ago.
      • Franchize Consultants’ April 2011 Franchising Confidence Index finds confidence eroding in the wake of the Christchurch earthquakes.
      • Reported earthquake impacts on franchisors and franchisees can be found in the full survey report.
      • Franchisee profits are expected to remain challenged. On balance franchisors expect franchisee profits to deteriorate.
      • Franchisee sales levels and operating costs are also expected to deteriorate over the next 12 months.
    • Including:
      • More detailed and complete results and analysis
      • All charts and illustrations
      • Franchisor and service provider comments in their entirety
      • The Franchising Confidence Index, is founded, designed and operated by Franchize Consultants, New Zealand specialists in franchising and licensing network development. Founded in 1989, Franchize Consultants have a long and supporting association with New Zealand franchising.
      • For further information contact Dr Callum Floyd
      • Ph. (09) 523 3858
      • Mob. 021 669 519
      • Email. callum@fcnzl.co.nz
      • Web. www.franchisingconfidence.co.nz
      • Web. www.franchize.biz