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October 2018 Quarter Results
FRANCHISOR BUSINESS SENTIMENT CHALLENGING
• Franchize Consultants is the first point of contact for
companies considering franchising their business
• Franchize Con...
Key Survey Highlights
• Franchisors’ sentiment towards general business conditions dropped,
after lifting very slightly la...
Background
• Quarterly survey of more than 400 New Zealand
franchisors and 100 specialist Service Providers (e.g.
consulta...
The Focus
GENERAL QUESTION AREAS
1. General business conditions
2. Franchisor growth prospects
3. Franchising growth drive...
The Results
Franchisors’ sentiment towards
general business conditions
dropped, after lifting very slightly
last quarter, ...
The Results
•Franchisors (net 46%) remained stable about prospects for franchisor growth. These results are in line with t...
The Results
Franchisor sentiment toward access
to suitable franchisees remained
challenging - at a net negative 48%
down f...
The Results
Franchisors and Service Provider
sentiment toward the availability
of suitable staff saw some
buoyancy despite...
The Results
This quarter’s Franchisors and Service
Provider sentiment towards accessing
suitable locations, saw a decided
...
The Results
Franchisor and Service Provider
sentiment towards franchisee sales
levels, whilst fluctuating, has
remained th...
The Results
Whilst franchisee sales perceptions
are stable that sentiment is not
extended to Franchisee Operating
Costs. T...
The Results
Finally, Franchisors’ sentiment
towards Franchisee profitability
levels, which are a strong indicator of
the e...
The Results
Franchisor sentiment toward access
to financing is continuing to fluctuate
quarter to quarter dipping to net
n...
More Information
www.franchisingconfidence.co.nz
Including:
• More detailed and complete results and analysis
• All charts...
Franchize Consultants
• The Franchising Confidence Index, is founded, designed
and operated by Franchize Consultants, New ...
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New Zealand Franchising Confidence Index | October 2018

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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

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New Zealand Franchising Confidence Index | October 2018

  1. 1. October 2018 Quarter Results FRANCHISOR BUSINESS SENTIMENT CHALLENGING
  2. 2. • 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 About Franchize Consultants
  3. 3. Key Survey Highlights • Franchisors’ sentiment towards general business conditions dropped, after lifting very slightly last quarter. Other research sources also showed drops. • Franchisor sentiment toward franchisor growth prospects remained in positive numbers, although reduced from last quarter. • Whilst franchisee sales perceptions are stable that sentiment is not extended to Franchisee Operating Costs. • Franchisors’ sentiment towards Franchisee profitability levels, which are a strong indicator of the economic climate, have remained relatively stable over the past five quarters. • Franchisor outlook, for availability of suitable staff and suitable locations showed slight improvements. • Sentiment towards sales levels per franchisee was relatively stable and positive on balance.
  4. 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 27 Franchisors and 13 Service Providers.
  5. 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. 6. The Results Franchisors’ sentiment towards general business conditions dropped, after lifting very slightly last quarter, from net negative 9% to net negative 22%. Service Providers sentiment showed a mirror effect dipping to net negative 23% from a net negative 7%.
  7. 7. The Results •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 toward franchisor growth prospects remained in positive numbers at a net 7% - albeit reduced from the net 18%, in July. Service Providers sentiment followed a similar trend, dropping from net 7% previously to a net negative 17% this survey.
  8. 8. The Results Franchisor sentiment toward access to suitable franchisees remained challenging - at a net negative 48% down from net negative 36%. Service Providers sentiment indicated a softening in this area improving to a net negative 15% from net negative 21%.
  9. 9. The Results Franchisors and Service Provider sentiment toward the availability of suitable staff saw some buoyancy despite comments of continued concern. Franchisors improved from a net negative 34% to a net negative 31%, whilst Service Providers improved more positively from a net negative 43% to net negative 31% this quarter. .
  10. 10. The Results This quarter’s Franchisors and Service Provider sentiment towards accessing suitable locations, saw a decided improvement at a net 13%, up from net 0% for Franchisors. Service Providers’ sentiment was similar at a net 8% up from net negative 7% •
  11. 11. The Results Franchisor and Service Provider sentiment towards franchisee sales levels, whilst fluctuating, has remained the most consistently positive area over the past 12 months. Overall sentiment remains positive, despite Franchisor expectations declining very slightly from net 33% to net 30%, and Services Providers improving from net 7% to net 15%.
  12. 12. The Results Whilst franchisee sales perceptions are stable that sentiment is not extended to Franchisee Operating Costs. That area continues to create concern, currently at a net negative 70% down from net negative 42%. Clearly there is huge concern. Service Providers show equal concern in sentiment at net negative 54% down slightly from July’s net negative 50%.
  13. 13. The Results Finally, Franchisors’ sentiment towards Franchisee profitability levels, which are a strong indicator of the economic climate, have remained relatively stable over the past five quarters, at a net negative 4% after a previous increase to net 3%. Service Providers sentiment remains stable although at a lower level of net negative 31%, down from net negative 29%.
  14. 14. The Results Franchisor sentiment toward access to financing is continuing to fluctuate quarter to quarter dipping to net negative 30% from a net 0% previously. Service Provider sentiment had previously remained in the positives but dipped to a net 0%.
  15. 15. More Information www.franchisingconfidence.co.nz Including: • More detailed and complete results and analysis • All charts and illustrations
  16. 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

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

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