In an effort to measure the impact of current economic conditions on franchisors’ growth, BoeFly has created the quarterly Franchise Growth Confidence Index to assess franchisor executive confidence related to achieving their domestic growth goals. The inaugural Index was conducted online from April 4 – April 16, 2023, and surveyed nearly 700 franchisor CEOs, CFOs, and CDOs across several major industries, including automotive, education, fitness, health/beauty, home services, restaurants, 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 to gauge what economic conditions have negatively impacted their confidence level.
Overall, an overwhelming majority (76.9%) of C-level franchisors said they were confident their brand will meet growth goals this year. However, those surveyed noted that inflation and interest rate increases are bearing down on executives’ confidence levels, while the impact of the recent banking crisis on their confidence appears to be relatively low during the second quarter. Additional highlights of the Index results include:
- An overwhelming majority (74.4%) of respondents agree that inflation negatively impacted their confidence level.
- Inflation’s negative impact on franchisors’ confidence seemed to force nearly half of those surveyed (46.2%) to change their prospects’ financial requirements. Statistically, it was fairly evenly split between agree and disagree (53.9%), but nearly half of changing requirements is significant.
- When it came to interest rates, the results are clear. Nearly three-quarters (71.8%) of franchisors agree that interest rate increases had a negative impact on their confidence score, while only 5.1% disagreed with the statement.
- Surprisingly, the recent bank instability did not dramatically affect executives’ confidence with two-thirds of respondents (66.7%) stating that they disagreed or strongly disagreed that it has negatively impacted their goals for the year.
BoeFly is a leading financial technology company specializing in fueling franchisor growth. To learn more about BoeFly’s financial franchise solutions, visit BoeFly.com. © 2023 BoeFly Inc. All Rights Reserved.