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New Zealand Franchising Confidence Index | July 2017
July 2017 Quarter Results
STRONG FRANCHISEE SALES OUTLOOK CONTINUES
• Franchize Consultants is the first point of contact for
companies considering franchising their business
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performance for both franchisors and franchisees
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Key Survey Highlights
• Franchisors and Service Providers demonstrate a continued increase in
confidence levels across many areas, particularly, general business
conditions, franchisee sales levels, and franchisor growth prospects
• Both Franchisors and Service Providers were positive in their outlook
for general business conditions.
• Availability of suitable staff were a standout challenge, and positivity
toward franchisee profitability levels diminished.
• Franchisor sentiment for franchisor growth prospects continues to
remain stable. Service Providers perceptions showed a slight increase.
• Franchisor and Service Provider sentiment toward access to suitable
franchisees increased markedly
• Quarterly survey of more than 400 New Zealand
franchisors and 100 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
• This survey represents the views of 39 Franchisors
and 14 Service Providers.
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?
whether they expect
the following aspects
to be better, the same
or worse over the
next 12 months
(compared to the
previous 12 months)
Both Franchisors and Service
Providers were positive in their
outlook for general business
conditions. Franchisors (net 26%)
improved on the previous quarter
(20%). Service Providers increased
more markedly from a net 18% in
April to 43%.
•Franchisors (net 46%) remained stable about prospects for franchisor growth. These results are in line with the net 45% in the previous quarter.
Franchisor sentiment for franchisor
growth prospects continues to
remain stable at net 45%. Service
Providers perceptions showed a
slight increase at a net 43%.
Franchisor sentiment toward access
to suitable franchisees increased
markedly from a net negative 10%
to a positive net 13%. Service
Providers were equally positive with
an increase to net 36%, up from
Franchisors sentiment toward the
availability of suitable staff hit a
record low at a net negative 32%,
down from a net negative 26%.
Service Providers were moderately
more positive at a net negative 7%,
down from a slightly more positive
net 0% in April.
Franchisors sentiment this quarter
indicated there are further challenges
with sourcing suitable locations,
dipping from a positive net 17% to a net
negative 5%. Service Providers outlook
was quite the opposite increasing to net
21% up from net 6%
Franchisor sentiment toward
franchisee operating costs declined
from a net 0% to a net negative
15%. Service Provider outlook
remained more negative at a net
negative 21% - albeit slightly
improved from April (net negative
Both Franchisor and Service Provider
sentiment toward franchisee sales
levels remained strong at a net 51%
and 43%, respectively.
Franchisors sentiment towards
franchisee profitability levels took a
dip to still positive net 18%, down
from an April net 40%. Conversely,
Service Providers were more positive
at a positive net 29%, up from 0% in
Franchisor and Service Provider
sentiment toward access to financing
differed, with franchisors more
positive at a net negative 8%,
improved from a negative 18%.
Service providers sentiment
deteriorated from a net 0% to a
• More detailed and complete results and analysis
• All charts and illustrations
• 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
• For further information contact Dr Callum Floyd
• Ph. (09) 523 3858
• Mob. 021 669 519
• Email. email@example.com
• Web. www.franchisingconfidence.co.nz
• Web. www.franchize.co.nz
Franchise Research: Results from the latest Franchize Consultants Franchising Confidence Index.