For all the touted economic benefits of hosting the Rugby World Cup, franchisors don't actually expect the event to have a positive impact on their businesses.
In the latest Franchize Consultants’ Franchising Confidence Index, 63.4 percent of respondents predicted a negative impact from the cup with the analysis that while a “short burst of joy” may drive some positive sales and regain confidence, benefits in the long-run are not foreseeable.
Some respondents even said the Rugby World Cup could pose a distraction that will draw focus away from franchise owners. And those trying to cash in on the event will have to toe a very fine line.
However, franchisor optimism on the whole is on the rise, with confidence up to a net 41 percent from a record -3 percent low in April.
Franchisors’ expectations for access to financing rose to a positive net 24 percent, bucking a negative trend that lasted more than a year.
Franchisors remained subdued in their outlook for finding suitable franchisees. The same sentiment was seen in their outlook for finding suitable staff. This fell from a net 36 percent in April to a net 0 percent.