Getting Frank About Franchising
Franchising Confidence Index Quarterly Survey
Franchize Consultants’ Franchising Confidence Index is a quarterly survey of 383 New Zealand franchisors and 115 specialist service providers (e.g. consultants, banks, accountants, lawyers and publishers) to the franchising community.
The Franchising Confidence Index represents confidence in key measures critical to the success of franchising in this country by reporting attitudes toward general business conditions, as well as key franchising growth determinants including access to capital, suitable potential franchisees, staff and locations. The Franchising Confidence Index also covers franchising health attributes and outcomes by exploring franchisee sales, operating costs and profitability, and franchise system growth prospects.
The data and analysis presented represents the views of 43 franchisors and 29 service providers collected between Monday 4 October and Friday 8 October 2010. Findings from both groups are reported separately.
Note, respondents are asked whether they expect conditions to be ‘better,’ ‘same’ or ‘worse.’ ‘Net’ confidence is the difference between those reporting ‘better’ and ‘worse.’
FRANCHISING CONFIDENCE SURVEY HIGHLIGHTS
Franchising sentiment slides further. Capital constraints and franchisee concerns remain
Franchize Consultants’ October 2010 quarter Franchising Confidence Index finds positive but falling sentiment across many key franchising indicators, including general business conditions, access to financing, suitable franchisees and locations. Meanwhile, franchisee sales levels and operating costs, and franchisor growth prospects are forecast to improve, while availability of suitable staff and franchisee profitability levels are expected to remain unchanged.