1. January 2015 Quarter Results
FRANCHISORS REPORT INCREASED CONFIDENCE IN 2015

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3. Key Survey Highlights
• Responding Franchisors and Service Providers report
improved optimism across many key growth drivers.
• Franchisors sentiment toward general business conditions
is 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.

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 18 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 2015?
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 69%) and Service Provider
(net 94%) sentiment toward general
business conditions. These elevated
results topped the latest results of other
more general business surveys including
the ANZ Business Outlook (30% in
December) and NZIER (21% in January)
business confidence surveys.

7. The Results
Franchisor growth also remained high (net
57%), up from the previous quarter. Service
Providers again provided significantly positive
results (net 80%), up from a net 50%.

8. The Results
Franchisors sentiment toward accessing
financing increased from 21% to 41% ,
Service Providers were even more positive
at a net 88%

9. The Results
Franchisor sentiment toward access to
suitable franchisees improved this
quarter, from negative net 17% to a
positive net 17%. Service Providers
were more optimistic at a net 44%.

10. The Results
Franchisor confidence in access to
suitable staff dropped slightly, to a
net negative 18%. Service Providers
were a little more positive at 6%.

11. The Results
Franchisor sentiment towards access to
suitable locations increased from
negative net 17% to 12%. Service
Providers were more positive at net
27%.

12. The Results
Franchisor sentiment towards
franchisee sales remained at an
elevated level, Franchisors at a net
62% and Service Providers
increased to net 80%.

13. The Results
Franchisor confidence in operating
costs remained lower, but were up
from the previous quarter.
Franchisors reporting a negative net
3% and Service Providers reporting
6%

14. The Results
Sentiment toward future franchisee
profitability was positive. Franchisors
reported an increase from 17% to 38%
and Service Providers a net 40%, up
from net 18% in the last quarter.

15. The Results
GREATEST CHALLENGE TO FRANCHISE DEVELOPMENT
Key 2015 Challenges
 Finding franchisees
 Competition
 Finding staff
 Franchisee investment
& ongoing cost
containment

16. More Information
www.franchisingconfidence.co.nz
Including:
• 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. callum@franchize.co.nz
• Web. www.franchisingconfidence.co.nz
• Web. www.franchize.co.nz