More Related Content


Similar to New Zealand Franchising Confidence Index | October 2014(20)


New Zealand Franchising Confidence Index | October 2014

  2. About Franchize Consultants • 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
  3. Key Survey Highlights • Responding Franchisors continued an optimistic, though slightly moderated outlook across many key growth drivers. Service Providers were mainly reflective of this sentiment • The positivity reported by Franchisors towards general business conditions is higher than other general business confidence surveys (i.e. ANZ, and NZIER). • Franchisors were sentiment toward franchisee profitability prospects – arguably franchising’s most important key performance indicator was down from the previous quarter. • Franchisors still remain positive about franchisor growth prospects.
  4. Background • 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 prospects. • This survey represents the views of 24 franchisors and 12 Service Providers.
  5. The Focus 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? 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)
  6. The Results The latest results indicated continued positive franchisor (net 50%) sentiment toward general business conditions – Service Providers results were reflective of this and reported a net 42%. These results were higher than other business surveys including ANZ Business Outlook (27% in October) and NZIER (20% in September)
  7. The Results Franchisor sentiment for franchisor growth prospects decreased from net 63% in the previous quarter to 38% this quarter. Service Providers reported an increase to net 50% up from 27% in the previous quarter.
  8. The Results Franchisor sentiment toward accessing financing increased from to 13% to net 21% . Service Providers reported a marked increase from net 7% in the last quarter to 42% this quarter
  9. The Results Franchisor sentiment toward access to suitable franchisees decreased this quarter, from a net 17% to negative net 17% . Service Providers were more optimistic at a net 47%.
  10. The Results Confidence in access to suitable staff decreased slightly from negative net 7% to negative net 17%. Service Providers reported 0%.
  11. The Results Franchisor sentiment towards access to suitable locations decreased from negative net 8% to negative net 17%. Service Providers showed little change from the previous quarter at net 8%.
  12. The Results Franchisor sentiment towards franchisee sales levels remained elevated but slightly moderated at 63% down from 70% in the last quarter. Service Providers rose slightly from a previous net 40% to 50%.
  13. The Results Franchisors outlook for operating costs dropped this quarter, from a net 13% to negative net 38%. Service Providers reported a negative net 25%.
  14. The Results Franchisors sentiment toward future franchisee profitability was down from a net 53% to net 17% this quarter. Service Providers were reflective of this sentiment at a net 18%
  15. More Information Including: • More detailed and complete results and analysis • All charts and illustrations
  16. Franchize Consultants • 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. • Web. • Web.