- The survey found that while franchisors maintained an optimistic outlook, confidence slightly moderated across key growth indicators compared to the previous quarter. Franchisors were less positive about prospects for franchisee profitability and growth. Service providers generally reflected the more cautious sentiment of franchisors. The results indicated franchising confidence remained higher than other business surveys.

1. October 2014 Quarter Results
FRANCHISING CONFIDENCE SLIGHTLY MODERATED

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
www.franchisingconfidence.co.nz

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