The 2021 Survey of New Zealand Franchising

We were very pleased to once again be a key sponsor of this survey, conducted by Massey University, on behalf of the Franchise Association of New Zealand. We also provided other assistance in addition to our sponsorship. The 2021 survey is packed with valuable insights on the size, impact, structure, strategies, challenges and opportunities of New Zealand franchising companies.

Key headline insights from the 2021 Survey of New Zealand Franchising include:

• Identifying 590 franchising brands and an estimated 32,000 franchisees in New Zealand.
• Business Format Franchising turnover of $36.8 billion, up from $27.6 billion in 2017 – an increase of 33%.
• Total franchise sector turnover (including Motor Vehicle Sales and Fuel Retail) up 27% from $46.1 billion to $58.5 billion.
• Total Business Format Franchising employment grew by 32,620 (or 26%) to 156,820.
• A potential maturing of the sector, including identifying >50% of responding brands franchising since 2000.
• Online sales growing tremendously, with now almost 80% of brands engaging in online sales compared to 60% in 2017.
• Franchisor / franchisee disputation remaining low, despite an economically challenging backdrop.
• Almost 2/3 of franchisors identifying environmental sustainability / ethical supply chain examples, with the principal examples being enforced recycling of materials, waste minimisation programs and hybrid car use.
• New and established franchisee and employee training days and hours were tremendous. New franchisees received a median 14 days of initial training, then 20 hrs per year. New employees received 40 hrs, then 20 hrs per annum.
• Franchisors committed a median of 12 days of general ongoing support to franchisees during the course of a year.
• Not surprisingly, less NZ brands presently interested in internationalization compared to 2017.
• COVID-19 brought considerable disruptions to trading, greater stress and mental health considerations, adjusted hours of operation, supply chain interruptions, significant sales reductions and many other issues.
• Franchise brands want clearer guidelines on when NZ will reopen, more access to government support, and access to highly trained international staff.
• Labour shortages / lack of suitable / skilled staff was the number one challenge identified for the next 12 months, alongside supply chain issues due to COVID-19 importation issues and periodic business disruptions.