1.
October 2015 Quarter Results
FRANCHISING CONFIDENCE IMPROVES IN OCTOBER

2.
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3.
Key Survey Highlights
• Responding Franchisors and Service Providers reported
increased confidence across many key growth drivers.
• Franchisors sentiment toward general business conditions
increased markedly from last quarter
• Franchisors still remain positive about franchisee
profitability prospects – arguably franchising’s most
important key performance indicator.
• Franchisors forecasts indicated a negative outlook for the
access to suitable franchisees, suitable staff and
operating costs

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 20 franchisors
and 15 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 increased
franchisor (net 42%) and Service Provider
(net 7%) sentiment toward general
business conditions. Franchisor results
were higher than the latest results of
other more general business surveys
including the ANZ Business Outlook (net
10% in October) and NZIER (negative net
9%) business confidence surveys.

7.
The Results
Franchisor growth prospects also increased
(net 47%), up from 35% in the previous
quarter. Service Providers were also more
optimistic reporting 20%.

8.
The Results
Franchisors sentiment toward accessing
financing increased slightly from 19% to
21% , Service Providers were slightly less
positive than last quarter at 27%,
dropping from net 30%

9.
The Results
Franchisor sentiment toward access to
suitable franchisees decreased this
quarter, to a negative net 16%.
Service Providers were more optimistic
reporting net 33%.

10.
The Results
Franchisor confidence in access to
suitable staff was an equivocal 0% .
Service Providers mirrored this, also
reporting 0%

11.
The Results
Franchisor sentiment towards access to
suitable locations decreased from net
3% to negative net 6% Service Providers
remained unchanged at 20%.

12.
The Results
Franchisor sentiment towards
franchisee sales increased, from at
a net 32%, last quarter to net 53% .
Service Providers decreased from
net 10% to net 7%

13.
The Results
Franchisor confidence in operating
costs increased slightly from the
previous quarter. Franchisors
reporting a negative net 6% and
Service Providers reporting negative
net 7%

14.
The Results
Sentiment toward future franchisee
profitability increased this quarter.
Franchisors reported an increase from
net 19% to net 26% and Service
Providers were nearly mirrored this
sentiment at 27%.

15.
More Information
www.franchisingconfidence.co.nz
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. callum@franchize.co.nz
• Web. www.franchisingconfidence.co.nz
• Web. www.franchize.co.nz