We are proud to have once again sponsored the 2024 Survey of New Zealand Franchising, conducted by Massey University on behalf of the Franchise Association of New Zealand (FANZ). Beyond our sponsorship, we also provided additional support for this important research.

Professor Jonathan Elms and Dr. Simon Moore from Massey University have done an outstanding job with this survey. Which offers deep insights into the structure, strategies, challenges, and opportunities within New Zealand’s franchising sector.

–> Go to FANZ 2024 Survey of New Zealand Franchising

Our thanks also extend to other sponsors who helped make this survey happen, including Westpac, Nexia New Zealand, Stewart Germann Law, Iridium Partners, Laser Plumbing & Electrical, Exceed, Franchise New Zealand Media and FANZ.

The 2024 survey reveals several key findings about the growth and impact of franchising in New Zealand:

• Franchise Sector Turnover: The sector’s revenue has risen by $10.4 billion since the last survey in 2021, reaching an estimated $47.2 billion.
• Franchisors and Units: New Zealand is home to 546 business format franchisors, with 27,295 franchise units operating across the country.
• Employment: More than 114,300 people are employed directly in business format franchising.
• Community Engagement: Nearly 90% of franchises contribute to their communities through financial donations, sponsorships, and other means.
• Technology: The adoption of modern technologies, including artificial intelligence, is becoming essential, with 72% of respondents either using or planning to implement AI.
• Training: All respondents provide initial training for franchisees, with a median training period of 14 days.
• Diversity and Inclusion: Half of the respondents have adopted policies promoting diversity, equity, and inclusivity among both employees and franchisees.
• Regional Distribution: Auckland remains the most popular location for franchise support offices.

Responding franchisors identified challenges to the franchising business model, such as economic concerns (e.g., inflation, recession, changing consumer sentiment, and profitability), labour and recruitment issues (e.g., finding suitable franchisees/employees, wage inflation and labour costs), operational and strategic concerns (e.g., FSO support capacity, quality control, franchisee receptiveness to change), and other concerns (e.g., competition and saturation).

Conversely, key opportunities for the franchising business model covered positive themes such as, expansion and growth channels, leveraging technology, economic improvements, sustainability and ESG, training and development, and innovation.

As I noted yesterday in part of my introduction to the results presentation by Professor Jonathan Elms of Massey University, franchising is ubiquitous, essential and operates in practically every industry (it is all around us).

Franchising is also predominantly made up of small businesses yet is large and growing in contribution to the New Zealand economy and society – in many ways. Not least:

• Franchising provides goods and services in different parts of the country in a way other forms of business often can’t.
• Franchising provides opportunities beyond employment, or where employment opportunities simply don’t exist.
• Franchising creates strong employment.
• Franchising provides considerable training – for new and established franchisees and for their staff
• Franchising contributes strongly to the country’s GDP

Franchising has also proven to be a resilient business organisational form, including delivering for New Zealand through may crises (such as the GFC, earthquakes, COVID-19 and the most recent recessionary times). I also noted how franchising generally needs to be better understood and supported to protect and realise its full potential for franchisors, franchisees and New Zealand.

Contact Franchize Consultants if you’re contemplating franchising a business or would like help with an established franchise network. We’d be very happy to sit down with you to understand your situation and objectives and explain the supporting services we provide. You can also follow us via LinkedIn, Facebook, Instagram and Google.

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