1. July 2016 Quarter Results
FRANCHISEE SALES AND PROFIT OUTLOOK STRONG

2. • Franchize Consultants is the first point of contact for
companies considering franchising their business
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(and other network format) chains review and improve
performance for both franchisors and franchisees
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3. Key Survey Highlights
• Responding Franchisors and Service Providers sentiment
provides a more optimistic outlook specifically across
franchisee sales levels and franchisee profitability.
• Franchisors sentiment toward general business conditions was
slightly more sombre this quarter.
• Franchisors sentiment about franchisee profitability levels –
arguably franchising’s most important key performance
indicator, bounced back to levels similar to January, with sales
levels showing a positive increase.
• Franchisor sentiment for franchisor growth prospects remained
stable, however sentiment for access to financing decreasing
sharply.

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 35 Franchisors
and 20 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 more
sombre franchisor (net 26%)
sentiment toward general
business conditions. Service
Providers were slightly more
positive, up from net 37% to net
50%

7. The Results
•Franchisors (net 46%) remained stable about prospects for franchisor growth. These results are in line with the net 45% in the previous quarter.
Franchisors (net 46%) remained
stable about prospects for franchisor
growth. These results are in line with
the net 45% in the previous quarter.
Service Providers were similar with a
small increase from net 47% to net
50%

8. The Results
Franchisor sentiment toward access
to suitable franchisees increased
markedly this quarter, from a net
negative 6% to a positive 11%.
Service Providers, meanwhile, were
less optimistic at a net 5%.

9. The Results
Franchisors remained constant and
subdued in sentiment toward the
availability of suitable staff at a net
negative 12%, down from net
negative 9%. Service Providers
were moderately more positive at a
net 5%, although down on the
more positive net 11% in April.

10. The Results
Franchisor sentiment towards access to
suitable locations was again positive
increasing from net 3% to 6%. Service
Providers dropped back to net 5%, after
having experienced a spike at net 53%
in the January survey.
•Franchisor sentiment towards access to suitable locations was again positive increasing from net 3% to 6%. Service Providers dropped back to net 5%, after

11. The Results
Franchisor confidence in franchisee
operating costs remained negative
dropping this quarter to a net
negative 6%. Service Provider
sentiment was reflected at a net
5%.

12. The Results
Franchisor sentiment towards future
franchisee sales levels showed a very
positive increase to a net 51%, up
from net 39% in April. Service
Providers featured a very positive
increase from a net negative 21% to a
positive net 30%.

13. The Results
Sentiment toward future franchisee
profitability bounced back this
quarter, to levels similar to January.
Franchisors reported a net 40%, as did
Service Providers a net 40%.

14. The Results
Franchisors sentiment toward access
to financing decreased markedly
from a net 21% to net 0%. Service
Providers reported a net 5%, down
from 37%.

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