Results from the latest Franchize Consultants Franchising Confidence Index. Franchize Consultants are franchising and licensing consulting specialists, focusing on: 1. Helping companies franchise a business 2. Helping established chains improve performance 3. Building franchise and chain management capability

1. New Zealand Franchising
Sentiment and Trends
2022
Dr Callum Floyd
Managing Director, Franchize Consultants
Email. callum@franchize.co.nz - Web. www.franchize.co.nz - Ph. 09 523 3858

2. Franchize Consultants
Background
Established in 1989, Franchize Consultants (NZ) Limited is New Zealand’s
leading specialist franchise consultancy working with many well-known
international and local, homegrown companies.
Franchize Consultants is author of the New Zealand Franchisor’s Guide,
New Zealand Franchisee’s Guide, the FANZ Pre-Entry Programme for
prospective franchisees and the Franchising Best Practice Handbook.
Researching and reporting on New
Zealand franchising sentiment
and trends since 2010.
Key Services
→Franchise System Feasibility & Development
→Established Franchise System Review & Improvement
→Franchisee and Franchisor Manuals
→Franchisee Satisfaction Surveys
→Franchise Advisory Councils
→International Franchising
→Franchisor & Franchisee Learning & Development
Team
Combined experience of more than 125 years franchising
Our Values
→Integrity
→Clients come first and partnership
→Strategic insight & thought leadership
→Franchisee and franchisor focus
→Value delivered

3. Background
• Franchize Consultants is the first point of contact for
companies considering franchising their business
• Franchize Consultants helps established franchised (and
other network format) chains review and improve
performance for both franchisors and franchisees
• Franchize Consultants conducts specialist research for
franchising insight and practical application
• Franchize Consultants builds franchisor executive and
franchisee capability and performance through focused
training and education programmes

4. What is the FCI?
The FCI is New Zealand’s annual survey of confidence specific
to franchising businesses. The FCI reports on franchisor and
specialist service-provider attitudes toward general business
conditions, as well as key franchisor growth determinants
including access to capital, suitable potential franchisees, staff
and locations. The FCI also reports on franchising health
attributes by exploring franchisee sales, operating costs and
profitability, and franchise systems growth prospects.

5. 2022 Franchising Sentiment & Trends
Respondents indicate whether they
expect the following aspects to be
better, the same or worse over the
next 12 months (compared to the
previous 12 months)
GENERAL QUESTION AREAS
1. General business conditions
2. Franchisor growth prospects
3. Franchising growth drivers
• Access to capital
• Access to suitable franchisees
• Access to suitable locations
• Access to suitable staff
4. Franchisee growth & profitability prospects
• Franchisee sales levels
• Franchisee operating costs
• Franchisee profitability
5. How are things looking for franchisors and
franchisees in their respective sectors?
6. What do you see as the greatest challenge to
franchise development in 2022?
7. What will provide the greatest opportunity to
franchising development in 2022?

6. General Business Conditions
Franchisor outlook for general
business conditions shows
deterioration to net negative 27% in
January 2022 from net 20% in
January 2021.

7. Access to Suitable Franchisees
Franchisor sentiment towards access
to suitable franchisees returns to net
negative 27% in 2022 following
improvement to net 23% in 2021.

8. Access to Financing
Franchisor sentiment towards access
to financing deteriorates further to an
all-time low at net negative 70%, the
lowest net confidence recorded since
the Franchising Confidence Index was
established in 2010.

9. Access to Suitable Locations
Franchisor outlook on suitable
locations remains largely unchanged
at net 9% from net 14% in 2021.

10. Access to Suitable Staff
Franchisor outlook towards access to
suitable staff shows a strong decline
to net negative 78% following from
an improvement in 2021. The net
negative 78% is the lowest net
confidence recorded for this measure
since the Franchising Confidence
Index was established.

11. Franchisee: Sales Levels
Franchisors sentiment toward future
sales levels per franchisee declines
to net 0% from net 13% in 2021.

12. Franchisee: Operating Costs
Franchisee operating costs remain a
concerning area – with franchisors
sentiment worsening to net negative
73% in 2022 from net negative 40% in
2021.

13. Franchisee: Profitability Levels
Following a similar trend to
franchisee sales and operating costs,
franchisor outlook on franchisee
profitability levels decline to net
negative 43% in 2022 from net
negative 7% in 2021.

14. Franchisor Growth Prospects
Franchisor sentiment for their growth
prospects softens to net 14%, down
from net 31% in 2021.

15. Greatest Challenge to Franchising Development
Top 5 challenges for 2022
1. Access to staff
2. COVID-19 impact
/uncertainty
3. Finding franchisees
4. Access to finance
5. Government regulations

16. Research contact
For further information on the Franchising Confidence Index, contact:
Dr Callum Floyd, Managing Director of Franchize Consultants
• Phone. +64 9 523 3858
• Mobile. +64 21 669 519
• Email. callum@franchize.co.nz
• Web. www.franchisingconfidence.co.nz
• Web. www.franchize.co.nz