Results from the latest Franchize Consultants New Zealand franchising confidence survey.

1. April 2013 Quarter Results
OPTIMISM BUILDS WITHIN THE FRANCHISING ECONOMIC GROWTH ENGINE

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3. Key Survey Highlights
• Franchisor sentiment very positive this quarter across a
range of important franchise sector growth drivers.
• Franchisors are much more positive about general
business conditions – when compared to other general
business confidence surveys (i.e. ANZ, BNZ and NZIER).
• Most importantly, franchisors are very positive about
franchisee profitability prospects – arguably franchising’s
most important key performance indicator.

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 36 franchisors
and 24 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
Franchisor responses continued to
improve to a net 53%, compared to 37%
in January. Conversely, Service Provider
sentiment showed a decrease to 58%
(current) from 66%.

7. The Results
Franchisor outlook for franchisor growth
prospects increased from a net positive 41%
to 58%. Service Providers’ outlook echoed this
with increase from 61% in January to 67%.

8. The Results
Both franchisors and Service Providers
remain positive in their outlook for
access to financing, on balance, albeit
Service Providers (net 26%) are more
positive than franchisors (net 13%).

9. The Results
Franchisor sentiment toward access to
suitable franchisees dropped slightly
this quarter, from net 5% to 0%.
Service Providers, meanwhile, were
more optimistic, showing a substantial
increase from net 9% to 38%.

10. The Results
Confidence in access to suitable staff
remained largely neutral, but
positive and improving, on balance.
Franchisor sentiment increased to a
positive net 3% from a negative net
5%. Service Providers also increased
in confidence.

11. The Results
Franchisor sentiments towards access
to suitable locations also rose from net
negative 5% to 0%. Service Providers
were more positive at net 33%.

12. The Results
Franchisor and Service Provider
sentiment towards franchisee sales
levels both show substantial
increases, and to high levels overall.
Franchisors rise 24% to a net 56%).
Service Providers improve from a
net 44% to 54%.

13. The Results
Franchisor confidence in operating
costs remained static, but
negative, during this quarter at a
net negative 11%.
Correspondingly, Service Provider
sentiment dropped from a net
negative 4% in January to negative
17%.

14. The Results
Sentiment toward future franchisee
profitability levels reached record
levels this quarter. Franchisors
increased confidence substantially to
a net 44% from 13% in January.
Service Providers showed a slight
decrease – but also reported good
positive levels on balance.

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