1. January 2016 Quarter Results
FRANCHISORS REMAIN OPTIMISTIC IN 2016

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3. Key Survey Highlights
• Responding Franchisors and Service Providers report
continued optimism across many key growth drivers.
• Franchisors sentiment toward general business conditions
remains elevated
• Franchisors report increased confidence for franchisee
profitability prospects – arguably franchising’s most
important key performance indicator.
• Franchisors forecasts indicated a negative outlook for the
availability of suitable locations, and operating costs

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 27 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 2016?
7. What will provide the greatest opportunity to
franchising development in 2016?
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 33%) and Service Provider
(net 53%) sentiment toward general
business conditions. These results were
shared by other more general business
surveys including the ANZ Business
Outlook 23% in December) and NZIER
(13% in January) business confidence
surveys.

7. The Results
Franchisor growth also remained high (net
56%), up from the previous quarter. Service
Providers reported positive results at a net
47%.

8. The Results
Franchisors sentiment toward accessing
financing increased from 21% to 30% ,
Service Providers were even more positive
at a net 53%

9. The Results
Franchisor sentiment toward access to
suitable franchisees was at 0% this
quarter, from negative net 16%
previously. Service Providers were
more optimistic at a net20%.

10. The Results
Franchisor confidence in access to
suitable staff dropped slightly, to a
net negative 7%. Service Providers
reported 0%.

11. The Results
Both Franchisor and Service Provider
sentiment towards access to suitable
locations decreased this month,
reporting negative net 16% and 0%
respectively.

12. The Results
Franchisor sentiment towards
franchisee sales remained at an
elevated level, Franchisors at a net
52% and Service Providers
increased to net 53%.

13. The Results
Franchisor confidence in operating
costs decreased this quarter,
Franchisors reporting a negative net
19% Service Providers were more
optimistic at net 20%

14. The Results
Sentiment toward future franchisee
profitability was positive. Franchisors
reported an increase from 26% to 44%
and Service Providers a net 33%, also
an increase from last quarter.

15. The Results
GREATEST CHALLENGE TO FRANCHISE DEVELOPMENT
Key 2016 Challenges
 Finding franchisees
 Finding locations
 Franchisee investment
& ongoing cost
containment
 Access to finance

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