Methodology
To further measure the impact of current economic conditions on Franchisors’ growth, BoeFly has released its second quarterly Franchise Growth Confidence Index. The second iteration of this report was conducted from July 7-18, 2023, and surveyed nearly 700 franchisor CEOs, CFOs, and CDOs through SurveyMonkey across several major industries, including automotive, education, fitness, health/beauty, home services, restaurant and retail.
Participants were asked to share their confidence level on a scale of 1 (not confident) to 7 (completely confident) if their respective brand will meet its franchise growth goals this year. Respondents were then asked four supporting questions with relevant economic concerns in mind to gauge which conditions, if any, have impacted their confidence level either positively or negatively since last quarter.
Results
Only a slight majority (54.5%) of C-level franchisors are confident that they will meet their growth goals for the year, reflecting a significant drop in confidence (22.4%) when compared to BoeFly’s inaugural results last quarter. Those surveyed overwhelmingly agreed that inflation and the current interest rates have negatively impacted their brand’s growth. Alternatively, there appears to be significant improvement when it comes to employment and the ability of franchisors to find and hire strong employees. Further insights include:
- A majority (81.8%) of respondents agree that the current interest rate negatively impacted their confidence level, a 10% increase compared to the previous survey (71.8%).
- Survey results show that 79.5% of respondents agree that inflation has negatively impacted their brand’s growth, a slight increase in percentage when compared to the previous survey (74.3%).
- When asked whether inflation has caused franchisors to increase cost estimates in Item 7 of their FDD, an overwhelming majority (86.4%) agree, concluding that inflation remains a major economic barrier to franchisor success.
- Three out of four (75%) respondents agree that the ability to find and hire strong employees has improved in the past quarter, having a positive impact on their confidence score.
