A franchise system review is an essential step, not a Luxury. For many New Zealand franchise systems, the current economic climate is turning up the pressure and franchisees are feeling it first.

Sales are softening as consumer demand wanes, and at the same time, input costs and overheads continue to climb. That’s putting real pressure on local profitability. Margins are being squeezed, and many franchisees are being forced to make harder decisions about where they spend time and money. Many franchisees are also feeling more stressed about their situation.

For franchisors, the downstream impact is significant.

From a financial point of view, franchisor income is most often tied to franchisee activity levels. Lower franchisee sales, in turn, means lower franchisor income to cover support costs. And thus, just like their franchisees, franchisors are being asked to do more with less. That makes efficiency and focus more critical than ever.

In this environment, system resilience matters. Franchisees may begin to question not just their personal results but the value of the model itself. Some will be wondering whether their franchise brand is delivering the level of support, recognition, and return they expected.

Others may be considering a shift altogether, particularly with Australia offering tempting economic and lifestyle opportunities. These pressures underscore the importance of evaluating and optimising franchise structures to ensure they remain fit for purpose, both now and into the future.

Franchise System Reviews: An Essential Step, Not a Luxury

In strained conditions, it can be tempting to delay or deprioritise a comprehensive franchise system review. Yet this is precisely the moment when a well-executed process delivers the most value. The right franchise system review shines a light on inefficiencies, identifies duplication of effort, and clarifies which tools and processes are genuinely supporting franchisee success.

This isn’t about surface fixes. A proper review examines areas like leadership, management, structure, and performance, and benchmarks your system against proven franchising best practices. It looks at leadership style, governance and management practices, franchise agreements, manuals, marketing, training, performance management, and more.

It includes an assessment of franchisee management as well as feedback from franchisees, identifying practical and prioritised areas of change that can lift performance, add value, and strengthen long-term sustainability.

Importantly, no two franchise system reviews are the same. Each is scoped to the specific challenges and context of the franchise system, whether the need arises from market shifts, flat performance, resistance to change, or signs the model is no longer working as intended. Our expert franchise system reviews are guided by franchising best practice principles, helping franchise systems prevent decline, address current challenges, and position for long-term leadership.

Franchisee Sentiment: A Leading Indicator of System Health

A full franchise system review puts the entire franchise model under the microscope. While that level of scrutiny can feel daunting, it’s often essential when franchisee sentiment is shifting. In tougher times, dissatisfaction can spread quickly and quietly, especially when franchisees feel isolated, unheard, or unsure about the brand’s direction.

If left unchecked, low morale can erode performance and cohesion. Franchisees may disengage from meetings, resist brand standards, or withdraw investment, at the very time the system needs everyone pulling together.

Franchisees under pressure are also less likely to recommend the brand to others. That can make recruitment harder, restrict growth, and affect the system’s overall reputation. In the worst cases, trust deteriorates, legal risk increases, and system unity begins to fragment.

This makes it critical to stay close to franchisee sentiment. A well-timed franchise system review, informed by proper listening, gives any Franchise Support Office the opportunity to step in proactively, strengthen the model, and rebuild confidence.

Now May Be the Right Time to Take Stock

Many experienced franchisors will instinctively recognise the signs when something in the system isn’t working as it should. But diagnosing the root cause, especially under pressure, requires objectivity, experience, and structured input. That’s where an external franchise review becomes invaluable. It creates the space to properly evaluate what’s working, what needs to change, and where Support Office effort will have the most impact.

Every franchise system review is structured, methodical, and tailored to your system’s needs. Our approach blends interviews, data analysis, document review, and field insight to produce a clear roadmap for sustainable performance improvement.

At Franchize Consultants, we’ve spent decades working with New Zealand franchise systems of all sizes and stages. We understand the local landscape, the operational pressures, and the practical realities of leading a franchise network through both growth and uncertainty. With over 30 years of experience, a specialist focus on franchising and licensing, and a proven track record in the New Zealand market, we bring structure, objectivity, and depth to every system review.

A structured business review also helps franchisors demonstrate to boards, shareholders, and franchisees that the system is aligned with best practice and ready for future growth.

Next Steps To Discuss A Franchise System Review

Every situation is different. If this has struck a chord, let’s start a conversation about your franchise system. Get in touch to book a discovery call, or reach out to us directly via LinkedIn.

Dr Callum Floyd – CFE

Managing Director
Phone 09 523 3858
Email callum@franchize.co.nz
Address 27 Gillies Avenue, Newmarket, Auckland.

Also Learn About Our Franchise System Training Programme

Register for our Franchisee Support Training Programmes

Contact Franchize Consultants if you 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.

We’ve been offering well-regarded Franchise Training programmes for over 10 years now. Our programmes are suitable for almost any support team member and are relied upon by many leading and emerging franchise companies.