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
• The January 2013 Franchising Confidence Index demonstrates a
continuation of mixed results across overall sector drivers, with
slightly more positivity seen.
• Franchisors were most positive in their outlook for prospects
for growth, general business conditions and franchisee sales
• Meanwhile, franchisor forecasts indicated a continuing
negative/poor outlook for franchisee operating costs, availability
of staff and franchisees.
• Written answers revealed increasing positivity, though
conditions are still challenging within specific sub-sectors.
• 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 38 franchisors and 23
5. The Focus
GENERAL QUESTION AREAS
1. General business conditions
2. Franchisor growth prospects
3. Franchising growth drivers Respondents indicate
• Access to capital whether they expect
• Access to suitable franchisees
• Access to suitable locations the following aspects
• Access to suitable staff to be better, the same
4. Franchisee growth & profitability prospects
or worse over the
• Franchisee sales levels next 12 months
• Franchisee operating costs (compared to the
• Franchisee profitability
previous 12 months)
5. How are things looking for franchisors and Franchisees in
their respective sectors?
6. The Results
Franchisor responses continued to
improve to a net 37%, compared to 28%
in October. Similarly, Service Provider
sentiment showed a more marked
improvement to 66% (current) from 42%.
7. The Results
Franchisor outlook for franchisor growth
prospects increased from a net positive 28%
to 41%. Service Providers’ outlook echoed this
with increase from 38% in October to 61%.
8. The Results
Both franchisors and Service Providers
remain positive in their outlook for
access to financing, albeit Service
Providers (net 26%) are more positive
than franchisors (net 13%).
9. The Results
Sentiment toward access to suitable
franchisees dropped this quarter.
Franchisors had the lesser decrease
from net 14% to 5%, whereas Service
Providers dropped from net 35% to
10. The Results
Confidence in access to suitable staff
demonstrates a drop from both
franchisors and Service Providers
since the October survey. Franchisors
decreased from net positive 6% to
negative 5%. Service Providers
dropped from net 23% to 13%.
11. The Results
Franchisor sentiments towards access
to suitable locations took a substantial
tumble this quarter, from a net positive
23% to negative 5%. Service Providers
were more positive at net 31%.
12. The Results
Franchisor and Service Provider
sentiment towards franchisee sales
levels both show an increase to
32% (franchisors) and 44% (Service
Providers), after both showing a
decrease in October.
13. The Results
Both franchisors and Service
Providers show a slight increase in
confidence for franchisee operating
costs (even though still remaining
below zero) ending at a net
negative 11% and 4%, respectively.
14. The Results
Overall sentiment toward future
franchisee profitability levels also
Franchisors increased confidence to
net 13% from negative 3%, and
Service Provider confidence improved
a net 30% from 0% in October.
15. The Results
GREATEST CHALLENGE TO FRANCHISING DEVELOPMENT
Franchisors identified finding
franchisees and franchisee business
model-related concerns as the two
top challenges to franchising
development in 2013
16. More Information
• More detailed and complete results and analysis
• All charts and illustrations
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
• Ph. (09) 523 3858
• Mob. 021 669 519
• Email. firstname.lastname@example.org
• Web. www.franchisingconfidence.co.nz
• Web. www.franchize.co.nz