Results from the latest Franchize Consultants New Zealand franchising confidence survey.

1. April 2015 Quarter Results
FRANCHISING SENTIMENT REMAINS POSITIVE

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3. Key Survey Highlights
• Responding Franchisors and Service Providers remain
optimistic across many key growth drivers.
• Franchisors sentiment toward general business conditions
is still high
• Franchisors remain positive about franchisee profitability
prospects – arguably franchising’s most important key
performance indicator.
• Franchisors forecasts indicated a negative outlook for the
availability of 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 29 franchisors
and 11 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 positive
franchisor (net 41%) and Service Provider
(net 36%) sentiment toward general
business conditions. These results were
higher than the latest results of other
more general business surveys including
the ANZ Business Outlook (35.8% in
March) and NZIER (20% in March)
business confidence surveys.

7. The Results
Franchisor growth also remained high (net
59%), up slightly from the previous quarter.
Service Providers were less optimistic
reporting 27%.

8. The Results
Franchisors sentiment toward accessing
financing decreased from 41% to 28% ,
Service Providers were also less positive
than last quarter at 36%, dropping from
net 88%

9. The Results
Franchisor sentiment toward access to
suitable franchisees remained the
same this quarter, at a positive net
17%. Service Providers were more
optimistic at net 55%.

10. The Results
Franchisor confidence in access to
suitable staff improved slightly, from
negative net 18% to negative net 7%.
Service Providers were down from
last quarter at 0%

11. The Results
Franchisor sentiment towards access to
suitable locations decreased from net
12% to net 7%. Service Providers
reported a net 9%.

12. The Results
Franchisor sentiment towards
franchisee sales remained positive,
at a net 38%, though this is down
from net 62% last quarter. Service
Providers decreased to net 45%
from 80%

13. The Results
Franchisor confidence in operating
costs were lower than the previous
quarter. Franchisors reporting a
negative net 10% and Service
Providers reporting negative net 9%

14. The Results
Sentiment toward future franchisee
profitability was positive. Franchisors
reported an increase from net 38% to
net 41% and Service Providers a net
55%, up from net 40% in the last
quarter.

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