NZ Franchise News February 2024
Franchise New Zealand media
Putting People in Business - Service Provider of the Year 2021 & 2022, Westpac New Zealand Franchise Awards.
Running your own business will always have its challenges, but people are feeling much more positive as we get our heads down in 2024. Here's what franchisors, economists and brokers have to say; some new and established opportunities; and?advice for business buyers.
In this issue – outlook improves for NZ franchisors, franchisees and business sales – sustainable business – retail opportunities: home & garden – coming soon: events in Auckland and online – retail opportunities: customer pleasers – franchise news: regulation and relationships – advice for buyers, franchisees and franchisors – Directory of Franchising
Outlook improves for NZ franchisors, franchisees and business sales
For the 13th year running, Franchize Consultants’ annual Franchising Confidence Index has measured the mood of the sector, revealing predictions and insight from franchisors and specialist service providers. ‘After the turbulent times of recent years, responding franchisors were much more positive about general business conditions, access to financing
New Zealand’s economic prospects are brightening, according to Infometrics’ latest forecasts. GDP growth is predicted to average 2.0 percent per annum during 2024 and 2025, which represents a substantial upward revision from the 1.2 percent per annum growth that was being forecast by Infometrics in October last year. This more positive outlook is underpinned by continued high net migration. Improving business confidence
The latest quarterly report from business brokers ABC shows that demand for business sales has reached historical highs, with the number of confidentiality agreements signed in 2023 being 30 percent ahead of the same period last year. This would usually result in increased completions; however, actual business sales were down 7 percent over the same period, which ABC attributes to cautious purchasers delaying decisions in an election year, as well as valuation gaps. However, the company suggests business prices will bounce back, with both volumes of signed confidentiality agreements and prices already showing increases. Read more.
Sustainable business
In our last newsletter, we profiled a couple of franchises which are focused on sustainability and the environment. We’ll be running a special feature on this in our next magazine, published 28 March. We’re already seeing high levels of enquiries for business opportunities this year, so if you want to grow, contact us now to find out about advertising.
‘The first question any would-be franchisee needs to ask is this: “Is the business I’m buying viable, sustainable and profitable?” Our job is to find out.’ So says Philip Morrison of Franchise Accountants. ‘Many good businesspeople are not accountants, so they need professional assistance delivered in a way they can understand. Our clients praise the clarity with which we have presented figures to them and enabled them to do what they do best – build and run their business.’ Find out the truth about the business you are buying.
A survey on our website revealed that almost a third of franchise buyers would be prepared to move to another region to take up the right franchise opportunity. A franchise is also a popular option for recent immigrants. Getting into a good franchise, with its brand, systems, buying power and training, clearly makes sense from a business point of view – but there’s more to it than that. Buying a franchise can also help you return to your family, or put down roots in a new region or country, by… Read lessons from franchisees who have made the change.
retail opportunities 1 – HOME & GARDEN
Do you have a passion for retail? Here are some modern-day opportunities, along with the stories of some of the people delivering great products and service around the country.
With over 140 stores across New Zealand and Australia, Choices Flooring offers the systems, training, marketing and online support needed to help you succeed in flooring retail.
When times are tight, people look for value for money. When times are good, they look for little extra treats. Two Dollar Things Plus needs more franchisees to meet demand all over the country.
After many years working in the flooring industry and banking, this informed couple chose Flooring Design. After just 3 years, their brand-new franchise is a multi-million dollar business.
Part of a growing franchise network of 62 irrigation and water management businesses across Australasia, Think Water Taranaki is the best of the best – you can bet on it!
These Stihl Shop franchisees realised the brand’s potential by buying 3 shops in 5 years. Now they’re taking an award-winners’ break while their children and staff run the businesses.
Coming soon - events in Auckland and online
Financial challenges are the topic at the Franchise Association’s first Twilight Session of the year on 21 February. A panel of specialists will address:
·???????? How to monitor franchise financial health
·???????? Common reasons why franchisees get into financial trouble.
·???????? How can a franchisor help a franchisee who is in trouble financially?
There will also be an opportunity to meet the new owners of Franchise New Zealand. The session starts at 4.30pm at the ASB Cube in Auckland’s CBD. Register here – non-members welcome.
For details of more events, including a Franchising Your Business seminar in Auckland next week, click here.
Disputes can happen in any commercial relationship – and in a franchise a dispute can damage the brand, divert valuable support resources, and erode the value of both the franchisor’s and franchisee’s businesses. Identifying the causes of disputes
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retail opportunities 2 – CUSTOMER PLEASERS
Travel, freight, cards, toys and laundry – retail isn’t just about things on shelves, it’s about serving communities. Here are four very different franchises which thrive on doing just that.
With increasing numbers of travellers and airlines returning to the New Zealand market, the next 12 months will be an exciting time for Helloworld. Franchises available now!
This couple read about Pack & Send in Franchise New Zealand. 3 months later, they were in business – 10 years later, they are more successful than ever and still growing fast.
Paper Plus is a co-operative franchise combining the support of a nationally-recognised brand with entrepreneurial drive and a passion for retail. Opportunities nationwide.
Looking for a semi-passive opportunity? Speed Queen-equipped laundromats offer good returns with remote management, as this investor confirms after 5 years of steady business.
Franchise news – regulation and relationships
The final report of the 2023 Review of the Franchising Code of Conduct has been released and contains 25 findings, 23 formal recommendations for change and 34 suggestions for implementation by the Australian Government. One major recommendation is the introduction of a licensing system for franchisors. For NZ franchisors looking at going trans-Tasman, it’s essential reading. Could similar provisions be enacted in New Zealand? Read more.
Sometimes you read articles claiming that the only one to make money out of a franchise is the franchisor, or that franchisees take all the risk, or that there’s an unfair imbalance of power between the parties. These articles are often a mixture of half-truths and misinterpretations designed to alarm rather than inform. Here’s a look at one such article from our archives, and here are some fascinating examples of franchisors who really cared when the chips were down.
While vacuum and cleaning retailer Godfreys Group has appointed voluntary administrators amid a struggle with profitability and sales, the company’s franchisees will keep trading. The administrators will be seeking to sell the franchisor business and its assets as a going concern.
ADVICE for buyers, franchisees and franchisors
Whether you are buying a business or running one already, starting to franchise or looking to improve results, getting good advice can save you time, money and heartbreak.
ASB provides a comprehensive range of financial solutions for franchisees and franchisors including finance, insurance, savings and investment options, everyday banking and more.
Bracken is a cutting-edge online Learning Management System designed for New Zealand franchises. Streamline your operations
With pest control in supermarkets in the news, Ecomist can help eliminate the sights and signs of pests in your business or home with local support from a team of franchisees.
Eftpos NZ has the scale, expertise and experience to meet all your in-store, online and back-office payment needs. Talk to the specialist dedicated franchise team from Eftpos NZ today.
Today, more than ever, franchisors constantly need to improve and adapt their leadership, systems and models for long-term benefit. Franchize Consultants suggests where to start.
Goodwin Turner provide a modern, friendly, client-focused and efficient approach to your legal requirements, with a genuine focus on adding value to your business.
Spaceworks is NZ’s leading turn-key solution for design, construction and procurement throughout the franchise and retail sectors. Fixed-price, on-time, on-budget approach.
Tereza Murray Franchising specialises in developing cost-effective franchise systems for small businesses needing a growth strategy that delivers profit, performance and scale.
Directory of Franchising
Want to find details of:
Go to the Westpac Directory of Franchising – the biggest, best and most comprehensive guide to the franchise sector in New Zealand.
More
For more information on franchising and franchise opportunities, visit New Zealand’s top source of franchise information at www.franchise.co.nz or see the latest issue of Franchise New Zealand magazine.
If you’re looking to reach franchisors and franchise buyers, advertise in the forthcoming issue of our print and digital magazine – published 28 March 2024. Call 0800 FRANCHISE (372 624) or click here.