NZ Franchise News May 2023

In this issue – economy close to turning point – NZ attractive to international franchises –social media ‘outrage’ – know the numbers that count – food brands’ sales grow again – next issue – awards open for entry – early bird offers for conference – promote your business – news snippets – opportunities and sources of advice

Economy ‘very close to turning point’

The latest Economic Overview from Westpac suggests that, although New Zealand still faces challenges, the economy is unlikely to slow as much as previously feared. Does that make now a good time to look at new opportunities? Here’s our look at some of the highlights from the report.

The latest quarterly?GlobalVue?chart from Edwards Global Services (EGS) once again ranks New Zealand in the top 10 countries in the world for franchises to consider when expanding internationally. In fact, New Zealand comes in equal third, just behind the USA and the United Kingdom, and on a par with Spain, the United Arab Emirates, Canada and Israel, and marginally ahead of Australia, France and Saudi Arabia. What makes NZ such a good option?

Increased prices and fewer trading restrictions have resulted in higher sales for top food brands. Restaurant Brands’ first quarter sales in New Zealand were $129.4 million, up 9.2 percent in total on the equivalent period last year and 7.4 percent on a same-store basis. The company is the master franchisee in NZ for KFC, Pizza Hut, Taco Bell and Carl’s Jr.?While margins remain under pressure, it’s a welcome sign of recovery for the industry. Read more.

A couple of news stories recently involving big franchised brands in New Zealand (including McDonald’s) have highlighted the potential brand damage from careless – if well-meaning – social media posts being placed by franchisees or their employees. What happened, who was outraged, and what can franchisors do about it to keep their franchisees safe?

There’s nothing worse than getting to the end of the financial year, looking at the figures presented by your accountant (and the tax you have to pay) and thinking, ‘There’s no money in my bank account – I can’t possibly have made all that profit! Where did all the money go?’ Here are some practical insights into key financial matters that affect the cash flows of a business.

Next issue June-September

Congratulations to the winners of our competition in the last newsletter. A free copy of Bill McGowan’s new book Be Your Own Boss is on its way to Joshua in Auckland, Andrew in Greytown, Trevor in Palmerston North, Keri-Ann (also in Palmerston North), and Jonathan in Wellington. See an extract from the book here.

The next issue of Franchise New Zealand will be published 23 June and distributed right through to 15 September. We’re looking to interview franchisees who have owned their businesses for more than 15 years – do you know someone with a story to tell or a big anniversary to celebrate? Let us know.

We still have advertising opportunities available in this issue if you want to reach franchise buyers and franchisors, contact us now.

And if you haven’t got the current issue, get your free print or digital copy at https://franchise.co.nz/free_issue

Events

Entry has now opened for the 28th Westpac New Zealand Franchise Awards. There are 16 different Awards to be won, with categories for Franchisees, Regional Master Franchises, Franchise Systems and Service Providers, and sub-categories in areas such as Sustainability, Community Contribution and Marketing Campaigns. Find out more and listen to advice from Judge Convenor Gillian Taylor.

The National Franchise Conference brings franchisors and franchise specialists under one roof to learn from each other, discuss issues and share ideas and solutions. This year, the Conference will be held in Christchurch from 27-29 August, and now’s the time to get a deal – the price of flights has come down, and Earlybird rates are open until 16 June. Find out the details here.

Did you know that, in addition to our popular print and digital magazine and online directory, you can also reach our readers with timely banner advertising on our website and targeted messages through Franchise New Zealand’s Showcase e-shots? Contact us for details.

Snippets

Australia’s biggest private fuel and convenience store operation, 7-Eleven, is up for sale. The group, which has around 750 stores, paid about $100 million in a class action settlement with franchisees last year after an investigation into systemic wage theft and doctoring of payroll records.

Auckland lawyer Stewart Germann will be one of the speakers at an online Global Franchise Symposium entitled Supporting Small and Micro Businesses Through Franchising. The symposium, on 30-31 May, will feature presenters from 12 countries including Saudi Arabia, Brazil, East Africa, Croatia and India.

The Subway sandwich chain closed almost 600 stores in the USA last year, although the rate of closure is slowing after losing more than 1,000 locations in each of the previous two years. The company is planning new openings in 2023 to capitalise on a new image and format.

Simon Bridges, the former National Party leader and CEO of the Auckland Chamber of Commerce, has been appointed chairperson of the group which operates franchises Crewcut Lawnmowing and Crewcare Commercial cleaning and building maintenance.

Former Bottle-O franchisee Ravi Arora, dubbed ‘one of NZ’s worst bosses’, is back in the headlines after failing to pay $25,000 to a former worker and then demanding costs. The liquor industry in general has taken considerable steps to ensure franchisee compliance with employment law after a number of cases emerged five years ago.

Opportunities

Local ownership means franchisees serve their communities while enjoying the support and buying power that comes from being part of a big brand. Here are some well-known names.

With over 35 years’ experience, multiple industry awards and courier franchisees across the country, Aramex is one of New Zealand’s most successful and trusted freight companies.

Learning while having fun – the Bricks 4 Kidz core programme is aligned with the values, key competencies and learning areas of the New Zealand curriculum.

Well-loved publication Coffee News provides the perfect opportunity for a small business or real estate agent to create extra positive cashflow in challenging market conditions.

Just Kidz supports and nurtures others to reach successful outcomes, with quality care and education for children and families, and business/career success for staff and owners.

A co-operative owned and operated by local franchisees, Paper Plus has a place in the heart of the communities it serves, as well as a big focus on franchisee profitability.

Automation and cash-free technology enables Speed Queen-equipped laundromat owners to run their businesses from anywhere. Demand for their services grows constantly.

Whether it’s cleaning, fixing, testing or maintenance, businesses always need help from other businesses. These B2B franchises offer popular services to their commercial clients.

Cleancorp provides commercial cleaning contracts and support for its franchisees, who deliver essential services to businesses from all sectors of the community.

Franchisees for Jim’s Test & Tag / Fire Safety provide critical peace of mind with services that ensure businesses comply with national safety regulations.

The award-winning Cleantastic offers franchisees a guaranteed income for 24 months without having to tie clients to annual contracts – a real point of difference.

Drone services give SkyTech Commercial franchisees the edge when it comes to cleaning, spraying, protecting and sanitising hard-to-reach properties.

CrestClean provides quality cleaning services, blending the benefits of an owner-operator culture together with strong, award-winning corporate systems and support.

Touch Up Guys franchisees see constant demand for convenient, high quality, cost-effective car paint restoration services from commercial and domestic customers.

Read the story of an ex-truckie who chose Paramount Services because of its long-standing reputation for excellence with both franchisees and clients.

Advice – PUTTING IT ALL TOGETHER

Whether you are buying a franchise, growing your business, or looking to move on to new challenges or retire, you’ll need advice on matters covering the where, what and how.

ASB provides a comprehensive range of financial solutions including finance, insurance, savings and investment options, everyday banking and more.

Just like building a house, conducting successful surgery, or winning a race, there are logical planning steps required to create a successful franchise model, say Franchize Consultants.?

Geotech Information Services?provide unbiased expert advice and support to franchised businesses to help put science behind major property planning decisions.

Iridium Partners provide a total solution for franchise development including franchisee recruitment, site acquisition and leasing, as well as resales of existing businesses.

Link Business Brokers are ideally suited to helping you sell your franchise business, whether you are looking to grow or move on from the network.

Your local SBA office can help you evaluate pre-purchase, manage your accounting and grow your business. And you’ll know they truly ‘get’ franchising, because SBA is a franchise too.

Tereza Murray Franchising specialises in developing comprehensive and cost-effective franchise systems for small businesses seeking a long-term, profitable growth strategy.

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 23 June 2023. Call 0800 FRANCHISE (372 624) or click here.