BoeFly Unveils Inaugural ‘Franchise Growth Confidence Index’
In the face of economic uncertainties, from inflation to rising interest rates, franchisors are maintaining a positive growth outlook! That’s right! According to new data, a whopping 76.9 percent of C-level franchisors expressed confidence that their brands will achieve growth goals in 2023.
Before we get too ahead, let’s take a deeper dive into the data to see where this confidence could be stemming from and where reservations still lie.
Last quarter, we worked with BoeFly, a leading FinTech company specializing in fueling franchisor growth, to create the inaugural Franchise Growth Confidence Index, surveying nearly 700 franchisor CEOs, CFOs, and CDOs spanning multiple sectors, including automotive, education, fitness, health and beauty, home services, restaurants, and retail.
With plans to conduct the Franchise Growth Confidence Index on a quarterly basis, BoeFly will be able to provide a consistent barometer of franchisor sentiment regarding the state of franchise growth in the U.S. Ultimately, the Franchise Growth Confidence Index will lend valuable insights through the lens of franchisor executives that can help business leaders navigate current economic conditions and propel their company forward.
As BoeFly’s CEO Mike Rozman shared in a recent interview with Franchise Times, “I have this view that franchisors are just optimists by nature,” in regard to the overwhelming percentage of respondents expressing a positive growth outlook. Still, while most franchisors appear optimistic, the survey delved into several economic factors to see what could be causing uncertainty.
What did we find out? Despite the initial positive findings, franchisors do have concerns. For example, a significant 74.4 percent agreed that inflation negatively impacts their confidence levels. Additionally, rising interest rates were cited by 71.8 percent of respondents as a cause for apprehension. Somewhat surprisingly, the recent banking crisis appeared to have a relatively low impact on executives surveyed, with two-thirds (66.6%) disagreeing that it hindered their goals for the year.
At the end of the day, it’s important to remember that franchisors are entrepreneurs by nature. With that, their optimism and ability to adapt during times of change are inherent. As the industry remains resilient in the face of economic uncertainties, franchisor executives continue to inspire confidence and demonstrate their commitment to sustained growth and prosperity. That’s something we can all appreciate!
To discover how franchisor executives are navigating the economic landscape to pave the way for franchise growth and success, please visit: https://boefly.com/blog/boefly-franchise-growth-confidence-index/.
