Massey University conducted a survey into franchising in New Zealand in 2021 on behalf of the Franchise Association of New Zealand. The survey was sponsored by the Stewart Germann Law Office, based in Auckland.
The survey shows that franchising is deeply embedded into New Zealand’s business landscape. The industry employs 156,820 people across the 32,300 franchised units currently in operation across the country, an impressive pair of statistics for a country of its size. Franchises are serious players in New Zealand, and racked up a sales turnover of $58.5bn across the country in 2021.
It’s not just a case of popular foreign brands setting up shop in New Zealand either, 70 per cent of the franchised brands in operation in the country are home-grown, indicating the strength of the franchising model, as well as the support franchises receive. The country’s brands are looking to foreign shores too, with over 20 per cent of franchisors delving into the international market.
The pandemic saw many businesses close their in-person component, and New Zealand was especially strict with its measures. As a result, franchised businesses moved to online sales as quickly as they could. Consequently, the survey found that 80 per cent of franchised brands were engaging in online sales.
While the online sales were a small silver lining, the COVID-19 induced pandemic did disrupt supply chains, opening hours, induce stress and much more to New Zealand’s franchises. Only 18.5 per cent of franchisors entered into substantial disputes with their franchisees during 2021, a markedly low figure for what was such a stressful year.
Franchise brands recognize the importance of giving back, and it has been no different in New Zealand. 90 per cent of franchise brands put profits back into the community, and almost two-thirds of franchisors have identified numerous environmental and ethical issues that stem from enforced recycling, waste minimization programs and hybrid car usage.
