Growing business confidence is crucial to success of franchises according to Franchize Consultants NZ
The quarterly April results of the Franchize Consultants ’ April 2012 Franchising Confidence Index suggests that growing business confidence across a number of measures crucial to franchisor and franchisee success.
Notable improvements in franchisor sentiment are also recorded for:
- Franchisor growth prospects
- Access to suitable franchisees
- Sales levels per franchisee and,
- Franchisee profitability
Key findings of the Franchising Confidence Index
- Franchisor sentiment for general business conditions hit the highest levels since the Franchising Confidence Index was established
- Sentiment for franchisor growth grew markedly
- Sentiment for franchisee sales and profitability both improved
Most indicated current and steady growth, with strong positive responses from the pet industry, courier services, financial sector and construction.
Service providers were generally more positive in their outlook for franchisors, reflecting the statistics identified earlier. Improvements were noted for economic stability, access to finance and franchisees, growth prospects generally, and improved consumer confidence.
Franchisors and service providers were asked what they perceived to be the greatest challenge to franchising development in the year ahead.
The responses indicate real concern for franchise network growth, particularly relating to unit growth from finding franchisees. Aligned concerns emanate from the economy.
Technology features as a real focus of challenge and from multiple quarters, including the impact of Internet sales, social media and keeping up with technology generally.
Service providers were concerned with franchisee confidence and satisfaction, and access to finance, with only one franchisor highlighting access to finance as a challenge this quarter.
