Extreme weather events are no longer a distant possibility. They are presenting an increasing challenge and growing risk for franchisors and franchisees across New Zealand. From cyclones and floods to droughts, climate volatility is more regularly disrupting business operations, supply chains, damaging infrastructure, and creating significant operational challenges for franchisees to manage day-to-day operations and customer service.

While earthquakes have long been a feature of natural disaster planning in New Zealand, the growing impact of climate-related events means many franchise systems need to widen their preparedness lens. These events are no longer isolated or rare. They are frequent enough, and increasing, such that business continuity and response planning for many needs to evolve to include more detailed resources, planning and embedded operational thinking.

Impacts at the Franchisee Level

Climate-related events can often result in direct partial or complete operational shutdowns. A flooded café, restaurant, or retail outlet, as examples, may be forced to close for days or even weeks, while still needing to pay staff, replace spoiled stock, clean or repair damaged equipment, and manage customer communication. 

For group home builders, and related franchised service companies, severe weather can halt progress across multiple sites, disrupt project timelines, and place significant pressure on working capital. As delays stretch out, clients can also become increasingly anxious or frustrated, creating further stress for franchisees already managing multiple operational and financial challenges. Similarly, for home and commercial service franchises like cleaning or gardening, there may be demand (and therefore income) reductions, access restrictions and property damage can create unpredictable workloads and potential safety issues.

Even when a franchisee’s location is not directly affected, wider supply chain disruptions can create additional pressure. Delayed deliveries, stock shortages, and unresponsive third parties all have the potential to impact service levels across the network.

Bottom-line, impact on affected franchisees cannot be overstated – and can be summarised into four key areas:

1. Physical damage, involving loss or damage to stock, equipment, fitout, property and signage.
2. Business interruption, involving temporary closure leading to loss of revenue, customers, and business momentum.
3. Insurance and compliance, where there may be time and complexities in claims, underinsurance risks, and also compliance problems with local/national regulations post-event.
4. Franchisee morale and viability, where a physical and emotional toll, and, financial strain can threaten the ongoing viability of the business.

What This Means for Franchise Systems

Increased weather-related disruptions introduce a new layer of challenge and complexity for franchise networks. A serious weather event affecting a single franchisee can have ripple effects throughout the entire franchise system, placing both operational and strategic pressure on a franchisor – and also for other franchisees for whom regular support maybe missed or delayed. 

Beyond the immediate physical damage and business interruption for the affected outlet, the franchisor may want and need to deploy urgent support resources, sometimes involving more than one support office team member. That can be to directly help on the ground, but also with potential assistance regarding insurance claims, landlord negotiations and communications, supplier coordination, and many other areas.  This can also be, at times, physically demanding and stressful for support office team members as well.

At the same time, there will likely be loss in sales and royalties. For smaller or emerging franchise systems this can be tougher, as each location carries more weight.   

There can also be an impact on the brand, depending on the nature of the damage and disruption. That could be, by way of example, from damaged branded property, or the loss of an important point of national presence.

System-wide, these increasing events can therefore test the franchisor’s preparedness, team, support mechanisms, and financial resilience as well.

It is also increasingly likely that other franchisees may raise concerns about their own exposure, prompting scrutiny of emergency protocols, insurance requirements, and franchisor responsiveness. The franchisor may also need to navigate legal complexities around franchise agreements, force majeure clauses, and obligations for assistance or repair. Over time, events like these highlight the need for strong risk management, robust business continuity planning, and a clear framework for supporting franchisees through a crisis, all the while balancing compassion with commercial sustainability.

Laying the Groundwork for Resilience

Many franchisors now need to treat climate disruption as a core operational and total business consideration. That includes developing and documenting resources, expected responses, clarifying roles, and ensuring support structures are in place ahead of time.

Franchise Manuals are a critical tool here. They should include clear procedures for extreme weather events, with guidance on resources, communications, supplier management, emergency contacts, and preparation and recovery checklists. Clarity at a system level helps franchisees act quickly and more confidently under pressure.

Franchisee training should also evolve. This can happen online or at regional meetings or conferences.

Field managers play a critical role during times of disruption, yet some may have not previously supported franchisees through events of this scale. In these moments, franchisees are often facing both operational and financial pressures, and significant personal stress. Field managers need training to respond with calm, practical leadership, backed by good franchisor resources and preparations, to help franchisees navigate decisions, maintain standards, feel genuinely supported and get their businesses back on track.

Peer-to-peer learning can also be powerful. Franchisees who have experienced disruptions often have valuable insights and practical solutions to share. Facilitating those conversations builds a sense of connection while helping others prepare.

Where Franchize Consultants Can Assist

Franchize Consultants can support franchise systems to anticipate and respond to emerging risks, including those related to climate disruption.

We focus on two areas of practical value. First, we can help franchisors assess likely climate-related risks and document appropriate response protocols within their Franchise Manuals. Second, we can train field managers to support franchisees confidently during times of disruption.

Our experience spans a wide range of industries, and we understand that every system has different vulnerabilities and resource constraints. That is why our approach is tailored, practical, and designed to be workable within real-world limitations.

Final Thoughts

The climate is shifting, and franchise systems must evolve accordingly. Taking steps now to build resources, clarify expectations, train field teams, plan with franchisees, and document responses, will improve resilience and protect both franchisees and franchisor.

If your franchise system is starting to explore how best to prepare for climate-related disruption, we would welcome a conversation.

Contact Franchize Consultants if you would like to discuss our franchisor services. We’d be very happy to sit down with you to understand your business and objectives. You can also follow us via LinkedIn, Facebook, Instagram and Google.