How are franchises performing? Jan 2021 Update

Azura Group

This year we will be comparing how different franchise sections are performing against a year ago to see how they are coping with the current pandemic. Each month we will analyse figures across multiple networks and see how they compare to a year ago. As we go through the year we’ll be able to see the ongoing effects of Covid-19 and how franchise networks are coping.

We’re going to look at three sectors that we have a suitable number of clients to get a representative picture:

Job and Van Based networks
Contract Based networks, including Cleaning franchises
Children’s activities

Job and Van Based Networks

Here we’re looking at the number of Jobs performed in January, the total value of those jobs and the average job value.

Change in number of Jobs Jan 21 vs Jan 20 = -24.5%
Change in Total Job Value Jan 21 vs Jan 20 = -20.0%
Change in Avg Job Value Jan 21 vs Jan 20 = +3.9%

So what we can see here is whilst the average number of jobs is down by nearly a quarter for the same period last year, the sector, in general, has managed to increase the prices on those jobs by nearly 4%

Contract Based Networks

For contract based networks we’re looking at the number of Active Contracts in Jan, the total value of those contracts and the average contract value

Change in number of Contracts Jan 21 vs Jan 20 = +1.3%
Change in Total Contract Value Jan 21 vs Jan 20 = -13.5%
Change in Avg Contract Value Jan 21 vs Jan 20 = -12.75%

So what we’re seeing here is that across the sector there has been a small increase in the number of Active contracts, but the value of those contracts is lower.

Also (not in the figures above) we can see that there is a definite split. Domestic Cleaning franchise networks generally have reduced numbers of active contracts and the networks focussing on Commercial Contract Cleaning have increased numbers of contracts

Children’s Activity Based Networks

Here we’re looking at the number of classes being offered, the numbers attending them and the revenue generated from them

This sector has been the most heavily affected by the lockdowns and most networks have switched to some form of Online Offering during this period, so what has been the effect.