Global Franchise 9.1

“This small country is a real giant when it comes to franchising, with 590 franchise systems in operation” communication and shared goals especially easy for franchise systems. There is also a significant level of knowledge about the mechanics of franchisor/franchisee relationships. Recent research conducted by Franchize Consultants and Franchise New Zealand Media demonstrates a very strong pool of potential franchisee candidates between the ages of 35-54 who have the available capital to invest in franchises. Data shows around 33% are interested in investment of franchises under NZ$50K and 15% interested in investment around NZ$300K+. New Zealand franchisees have realistic expectations of earning potential, with some saying they would accept making a loss, or just breaking even in year one, but many do expect to draw some sort of income in year one, rising to NZ$100,000 upwards from year two. The strongest motivators for investing in a franchise are the ones which will be very familiar to us all and are the same reasons which make franchising such a popular growth strategy globally – namely, business ownership and greater control over work-life balance, higher income, and building equity for later life or legacy. There’s also a very strong desire for New Zealanders to move from a more mundane career into something for which they have a strong passion, and which challenges their entrepreneurial spirit. As we all know, franchising offers a way to all this and more, and potential franchisees in New Zealand are very knowledgeable about how franchising can also offer reduced risk of failure, as well as tried and tested systems, support and guidance in their local market. Thanks to these motivators and with the sophisticated knowledge of franchising which backs them up, the failure rate of franchising in New Zealand is relatively low. Potential franchisees start with a good awareness of what they are getting into and are more than willing to take the time necessary to thoroughly investigate a franchise before committing to the investment. GLOBAL-FRANCHISE.COM 33