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

1. January 2014 Quarter Results
FRANCHISORS REPORT RECORD CONFIDENCE IN GENERAL BUSINESS
CONDITIONS

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
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Franchize Consultants builds franchisor executive and
franchisee capability and performance through focused
training and education programmes

3. Key Survey Highlights
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Responding Franchisors and Service Providers report
continued elevated optimism across many key growth
drivers.
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Franchisors sentiment toward general business conditions
is very high and comparable to other general business
confidence surveys (i.e. ANZ, BNZ and NZIER).
•
Franchisors remain positive about franchisee profitability
prospects – arguably franchising’s most important key
performance indicator.
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Franchisors forecasts indicated a negative outlook for
operating costs.

4. Background
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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.
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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.
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This survey represents the views of 35 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?
6. What do you see as the greatest challenge to franchise
development in 2014?
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 extremely
positive franchisor (net 79%) and Service
Provider (net 93%) sentiment toward
general business conditions. These
elevated results were shared by the latest
results of other more general business
surveys including the BNZ (net 68% in
January), ANZ Business Outlook (64% in
December) and NZIER (52% in December)
business confidence surveys.

7. The Results
Franchisor growth also remained high (net
62%), up from the previous quarter. Service
Providers again provided significantly positive
results (net 93%), up from a net 79% in
October.

8. The Results
Franchisors sentiment toward accessing
financing increased from 0% to a positive
9% , albeit Service Providers are more
positive at a net 33%

9. The Results
Franchisor sentiment toward access to
suitable franchisees improved this
quarter, from negative net 13% to net
0% Service Providers were more
optimistic at a net 47%.

10. The Results
Confidence in access to suitable staff
dropped slightly, Franchisor
sentiment to a net 3%. Service
Providers also decreased in
confidence (net 13%) from net 29% in
the previous quarter.

11. The Results
Franchisor sentiment towards access to
suitable locations also decreased from
net 19% to 0%. Service Providers were
more notably more positive at net 40%.

12. The Results
Franchisor and Service Provider
sentiment towards franchisee sales
levels both remained at a high
level. Franchisors at a net 60% and
Service Providers also up to 80%.

13. The Results
Franchisor confidence in operating
costs remained negative, during
this quarter at a net negative 18%.
Correspondingly, Service Provider
sentiment was a net negative
40%, which has decreased from the
last quarter.

14. The Results
Sentiment toward future franchisee
profitability was positive. Franchisors
reported an increase from 19% to 38%
and Service Providers a net 60%, up
from net 36% in the last quarter.

15. The Results
GREATEST CHALLENGE TO FRANCHISE DEVELOPMENT
Key 2014 Challenges
 Finding franchisees
 Economic concerns
 Organic franchisee
growth
 Finding staff
 Finding locations

16. More Information
Including:
•
More detailed and complete results and analysis
•
All charts and illustrations
www.franchisingconfidence.co.nz

17. 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
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Ph. (09) 523 3858
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Mob. 021 669 519
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Email. callum@franchize.co.nz
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Web. www.franchisingconfidence.co.nz
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Web. www.franchize.co.nz