Franchize Consultants’ October 2010 quarter Franchising Confidence Index

3. 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.

5. Franchisors remain generally positive about forthcoming general business conditions (net 28%). This represents a gradual decline from April (net 39%) and July (net 32%), respectively.

6. Franchisors are still generally positive about forthcoming growth prospects for their organisations (net 56%), compared with service providers perspective for franchisors generally (net 17%).

7. An increasing, and worrying, net -19% of franchisors expect access to financing to deteriorate over the coming year. This compares with -5% and 6% in April and July, respectively. Service providers are marginally more optimistic (net 7% positive) for franchisors generally.

8. Franchisors see tougher access to suitable franchisees in the year ahead (net -5%), down from14% in July.

9. Meanwhile, perceived access to suitable staff holds at net 16%.

10. Franchisors (net 30%, down from 34% in July) and service providers (net 52%, up from 31% in July) share a generally positive outlook for finding good locations – where applicable.

11. Encouragingly, franchisor sentiment for franchisee sales levels climbed to net 48% (from 36% in July)

12. The outlook for operating costs improved dramatically – with a net 51% (compared to -29% in July) expecting improvements over the next 12 months.

13. Meanwhile, a net 16% of franchisors expect franchisee profitability levels to be better (same as July, but down from 41% in April).

15. Franchisee sales levels and operating costs, and franchisor growth prospects are forecast to improve.

17. All charts and illustrations

19. For further information contact Dr Callum Floyd

20. Ph. (09) 523 3858

21. Mob. 021 669 519

22. Email. callum@fcnzl.co.nz

23. Web. www.franchisingconfidence.co.nz

24. Web. www.franchize.biz