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New Zealand Franchising Confidence Index | July 2011
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New Zealand Franchising Confidence Index | July 2011


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Results from the latest FCI survey of New Zealand franchising confidence

Results from the latest FCI survey of New Zealand franchising confidence

Published in: Business, Health & Medicine

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  • 1.
  • 2.
    • Quarterly survey of 394 New Zealand franchisors and 115 specialist service providers (e.g. consultants, banks, accountants, lawyers and publishers) to the franchising community.
    • 3. 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.
    • 4. This survey represents the views of 41 franchisors and 23 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)
  • 5. Both franchisors and service providers foresee improvements in general business conditions. For franchisors, increased optimism sent confidence up to a net 41% from the record -3% low in April. Service providers were even more optimistic with a net 65%.
  • 6. Franchisors consolidate optimism in their own growth prospects (net 39%). Meanwhile service providers, on balance, are more confident in their growth outlook for franchisors (net 55%).
  • 7. For the first time, franchisors’ expectations for access to financing rose to a positive net 24%, breaking out of the negative trend that lasted more than one year. Service providers remained optimistic (net 43%).
  • 8. Franchisors register marginal improvement and remain subdued in their sentiment for finding suitable franchisees (net 8%). Franchisee recruitment is still a challenge for franchisors. Service providers remain considerably more optimistic (net 41%).
  • 9. Franchisor and service providers’ outlook for finding suitable staff both declined. Franchisor fell from a net 36% (April) to a net 0%. Meanwhile, service providers remain positive on balance (net 27%), albeit decreasingly so.
  • 10. At net 7%, franchisors’ expectations in access to suitable locations are much lower than the previous quarter, whereas service providers thought more positively (net 32%).
  • 11. Both franchisors (44%) and service providers (50%) are positive in their outlook for franchisee sales. Meanwhile, both (franchisors -32%, service providers -27%) remain concerned about the outlook for franchisee operating costs. Notwithstanding, both (franchisors 22%, service providers 14%) report improved sentiment for overall franchisee profitability levels.
  • 12. A majority (63.4%) of franchisors indicated that the Rugby World Cup would not have a positive impact on their franchise system. However, 24.4% responded maybe, and 12.2% responded yes.
  • 13.
    • Franchize Consultants’ July 2011 Franchising Confidence Index finds confidence reaching new heights in some key indicators.
    • 14. Expected RWC impacts on franchise systems can be found in the full survey report.
    • 15. Finding suitable franchisees and staff remains a challenge.
    • 16. Franchisee sales and profitability level indicators improved more than expectations for franchisee operating costs – which remain negative overall.
  • Including:
    • More detailed and complete results and analysis
    • 17. All charts and illustrations
    • 18. 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.
    • 19. For further information contact Dr Callum Floyd
    • 20. Ph. (09) 523 3858
    • 21. Mob. 021 669 519
    • 22. Email.
    • 23. Web.
    • 24. Web.