1. July 2013 Quarter Results
FRANCHISING SENTIMENT REMAINS ELEVATED

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3. Key Survey Highlights
• Franchisor sentiment very positive, and remain elevated,
this quarter across a range of important franchise sector
growth drivers.
• Franchisors sentiment toward general business conditions
is high and comparable to other general business
confidence surveys (i.e. ANZ, BNZ and NZIER).
• Franchisors remain positive, on balance, about franchisee
profitability prospects – arguably franchising’s most
important key performance indicator.
• Generally, both franchisors and service providers noting
improved sales conditions.

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 32 franchisors
and 16 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 highly
positive franchisor (net 50%) and Service
Provider (net 67%) sentiment toward
general business conditions. These
elevated results were shared by the latest
results of other more general business
surveys including the BNZ (net 59% in
July), ANZ Business Outlook (53% in July)
and NZIER (31% in June) business
confidence surveys.

7. The Results
Both franchisors (net 53%) and Service
Providers (net 67%) were positive about
prospects for franchisor growth. Only three of
32 franchisor respondents expected franchisor
growth prospects to deteriorate.

8. The Results
Both franchisors and Service Providers
remain positive in their outlook for
access to financing, on balance, albeit
Service Providers (net 27%) are more
positive than franchisors (net 9%).

9. The Results
Franchisor sentiment toward access to
suitable franchisees improved this
quarter, from net 0% to 9%. Service
Providers, meanwhile, were more
optimistic at a net 33%.

10. The Results
Confidence in access to suitable staff
remained largely neutral, but
positive and improving, on balance.
Franchisor sentiment remained at a
net 3%. Service Providers also
increased in confidence (net 27%).

11. The Results
Franchisor sentiments towards access
to suitable locations also rose from net
0% to 13%. Service Providers were
more positive (albeit decreasingly so) at
net 20%.

12. The Results
Franchisor and Service Provider
sentiment towards franchisee sales
levels both show some
consolidation at a high level,
overall. Franchisors’ settle at a net
53%. Service Providers improve to a
high net 60%.

13. The Results
Franchisor confidence in operating
costs remained static, but negative,
during this quarter at a net negative
16%. Correspondingly, Service
Provider sentiment was a net
negative 20%.

14. The Results
Sentiment toward future franchisee
profitability remained positive
overall. Franchisors reported a
decrease from a positive net 44% to
28%. By contrast Service Providers
demonstrated greater confidence,
increasing from a net 25% to 53% - the
strongest sentiment Service Providers
have reported toward forward
franchisee profitability levels.

15. More Information
www.franchisingconfidence.co.nz
Including:
• More detailed and complete results and analysis
• All charts and illustrations

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