1. July 2015 Quarter Results
FRANCHISING CONFIDENCE DROPS IN JULY

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3. Key Survey Highlights
• Responding Franchisors and Service Providers reported
subdued sentiment across many key growth drivers.
• Franchisors sentiment toward general business conditions
is still in positive territory, but down from last quarter
• Franchisors still remain positive about franchisee
profitability prospects – arguably franchising’s most
important key performance indicator.
• Franchisors forecasts indicated a negative outlook for the
access to suitable franchisees, suitable staff 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 37 franchisors
and 10 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 lower
franchisor (net 14%) and Service Provider
(net negative net 10%) sentiment toward
general business conditions. Franchisor
results were higher than the latest results
of other more general business surveys
including the ANZ Business Outlook
(negative net 2% in June) and NZIER (5%
in June) business confidence surveys.

7. The Results
Franchisor growth prospects also decreased
(net 35%), down from 59% in the previous
quarter. Service Providers were also less
optimistic reporting 0%.

8. The Results
Franchisors sentiment toward accessing
financing decreased from 28% to 19% ,
Service Providers were also slightly less
positive than last quarter at 30%,
dropping from net 36%

9. The Results
Franchisor sentiment toward access to
suitable franchisees dropped this
quarter, to a negative net 8%. Service
Providers were more optimistic
reporting net 40%.

10. The Results
Franchisor confidence in access to
suitable staff reported a negative net
6% . Service Providers were up from
last quarter from 0% to 30%

11. The Results
Franchisor sentiment towards access to
suitable locations decreased from net
7% to negative net 3% Service Providers
reported a more positive 20%.

12. The Results
Franchisor sentiment towards
franchisee sales remained positive,
at a net 32%, though this is down
from net 38% last quarter. Service
Providers decreased to net 10%
from 45%

13. The Results
Franchisor confidence in operating
costs were also lower than the
previous quarter. Franchisors
reporting a negative net 16% and
Service Providers reporting negative
net 20%

14. The Results
Sentiment toward future franchisee
profitability dropped this quarter.
Franchisors reported a decrease from
net 41% to net 19% and Service
Providers a net 20%, down from net
55% in the last quarter.

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