OUR franchise NATION Separating fact from fiction
Franchise businesses are ubiquitous. It may come as no surprise to learn that, per capita, New Zealand is one of the world’s most franchised countries. Those familiar brands dominate our retail precincts and malls, commercial centres and industrial parks the length and breadth of this country, and cover almost every business sector you can think of.
Whether you’re in business already, or looking to get started, franchising has always held a certain attraction: the prospect of healthy profits (albeit through hard work) and that enviable support structure that helps both parties – franchisor and franchisee – reach their goals.
However, as with all prospective business ventures, the old adage ‘buyer beware’ applies. Due diligence is critical, and you can never seek too much expert advice.
New Zealand’s franchise sector is currently more positive about the future than the general business sector, according to the latest quarterly Franchising Confidence Index released in April by Franchize Consultants. And that’s despite the uncertainty over CGT during that survey period.
Simon Lord, editor of Franchise New Zealand magazine and the franchise.co.nz website has worked in franchising for more than 35 years and witnessed its evolution. In 2019, the food and services categories are trending hot, and international interest in the New Zealand market is high, he says, with Australian franchises in particular interested in opportunities here given the current regulatory uncertainty across the ditch.
But there is a niggly issue.
