New Zealand Franchise Update
This article appeared in Issue 3#4 (May/June 2009) of Business Franchise Australia & New Zealand
“The Franchise sector of the New Zealand economy is substantially larger than most people realise”, says Graham Billings, General Manager of the Franchise Association of New Zealand (FANZ).
Current estimates would suggest that turnover is between NZ$15 billion and NZ$20 billion and represents between 8% and 10% of GDP.
The number of franchise systems operating in New Zealand is in the region of 350 with approximately 18,000 franchisees, and a total direct employment estimated to be around 100,000 people.
The franchise model is operated in all sectors of business. In New Zealand, franchising has comparatively fewer businesses in the retail sector compared with many other countries, but is comparatively stronger in home and business-to-business services. Indicative of the entrepreneurial spirit of New Zealanders, approximately 70-75% of franchises operating here are home-grown.
Despite the economic situation, there are some franchise systems that are experiencing growth. A number of Franchise Association members are reporting an increase in both the numbers and the quality of people expressing interest in becoming franchisees.
There are also indications that the quick service restaurant and café sectors are holding up well, a trend that is also being seen in both Australia and the USA; although as reported in the last issue, there is concern amongst some shopping mall franchises over rental increases affecting profitability.
High Profile Franchise Joins FANZ
New Zealand Post has recently come on board as a new member of the Franchise Association of New Zealand.
FANZ General Manager, Graham Billings said, "We are delighted to welcome NZ Post in to membership. By joining the Association and ensuring that their processes are in accordance with our Rules and Codes, they are subscribing to the very highest standards of franchising in this country."
"With such a high profile business now a part of the Association, we hope it will encourage the minority of other franchisors not currently in membership to join", he said.
New Zealand Post sees its recent partnership with the Franchise Association of New Zealand as an opportunity that will add value to its business and community, now and into the future.
New Zealand Post has been a part of Kiwi society since 1840, and has come a long way since then. There are more than 950 outlets in the Post Retail network, and over 150 of these are franchises. By coming on board as a new member of FANZ, New Zealand Post builds on existing partnerships within the community and local businesses. This is a move that shows New Zealand Post’s commitment to ensuring their processes are aligned to the highest standards of franchising in the country.
"What we’re seeing now is a complete revitalisation of our network," says Michelle van Gaalen, Group Manager for New Zealand Post Retail. "Postal volumes across the world are declining but services are growing, and that’s the area we are focusing on. Our stores have become an exciting mixture of trusted heritage brand and ’new kid on the block’. That means we need new people, new skills and a new outlook. Our partnership with the Franchise Association of New Zealand is a very successful one for ourselves, our franchisees and our communities alike.”
National Franchise Association Conference Queenstown 10-11 July 2009
Make sure you have these dates in your diary and the sooner you book your flights, the cheaper they are!
We are well on the way to bringing you a first class list of recognised national and international speakers, presenting topics from which you will get real value to take back to your businesses. This year we are staying away from purely ‘motivational’ speakers and whilst I have no doubt you will still be challenged and enthused, they will all be presenting on business issues relevant to today's marketplace.
For more information on becoming a FANZ member, visit www.franchiseassociation.co.nz
Membership is open to franchisors, franchisees, and master franchisees, as well as professional advisors or individuals with an interest in franchising in New Zealand.