Global Franchise 9.1

hours ahead of the UK, 17 hours ahead of New York and 20 hours ahead of California. • Imported goods can be expensive, so many franchises who are reliant on them may have to switch over to locally sourced supplies. • Due to higher operating costs, unit profitability could also be lower, but most still operate at a high level compared to other countries. Royalty percentages tend to run higher than other countries. Furthermore, international franchisors are advised to consider faster scalability of their brands and a more expeditious development schedule to achieve market share. There are good opportunities for themed F&B concepts, but the main gaps I saw in franchise concepts were mainly from B2B and B2C, such as kids’ education, fitness development, domiciliary care and home services. Generally speaking, concepts like these are less reliant on international supply chains and have less of a need for large, expensive premises, so may represent an opportunity to circumvent many of the challenges faced above. Find out more My special thanks go to Robyn Pickerill of FANZ and Stewart Germann of SGL law office who facilitated my visit and allowed me to speak at their Franchise Seminar in Auckland. Also, a huge thank you to all the highly expert franchise specialists and stake holders in NZ for not only meeting with me and sharing their valuable knowledge, but for allowing me to extract some data from recent survey conducted by Massey University and Franchize Consultants and Franchise New Zealand Media. Further information and useful market surveys can be found at franchiseassociation.org.nz. KEYTAKEAWAYS FOR INVESTORS Sophisticated market: New Zealand stands out as one of the most sophisticated and well- developed franchise markets globally, boasting 590 operational franchise systems Robust economy: Recent data reveals a thriving franchise sector contributing NZ$36.8 billion to the economy, with major brands, especially in F&B, enjoying a strong presence across the nation’s towns and cities Favorable environment: The country’s franchise- friendly environment, coupled with a knowledgeable pool of potential franchisees, contributes to a relatively low failure rate in franchising ventures Motivated franchisees: Potential franchisees in New Zealand are driven by familiar factors like business ownership, work-life balance, and income potential, as well as a desire for entrepreneurial challenges and passion-driven careers Regulatory landscape: While lacking specific franchising laws compared to Australia, New Zealand offers a supportive regulatory framework through bodies like the Franchise Association of New Zealand (FANZ), enhancing credibility for brands entering the market. Challenges for international brands: Franchisors eyeing expansion into NZ must navigate challenges such as franchisee funding, geographic dispersion, higher operational costs, labor shortages, and time zone differences Strategic considerations: International franchisors are advised to prioritize scalability, adaptability, and market-specific concepts like themed F&B offerings and B2B/B2C services to overcome challenges and capitalize on opportunities Resource access: Accessing local resources and expertise, along with understanding market nuances, is crucial for successful entry and growth in the New Zealand franchise landscape Continuous monitoring: Ongoing monitoring of market dynamics, regulatory changes, and consumer trends is essential for sustaining franchise success and maximizing growth potential. Upcoming opportunities: FANZ’s National Franchise Conference ConnectXperience 2024 is taking place on the 28-30 July 2024, presenting a great opportunity to gain vital insights. The IFA’s Matt Haller, Mary Kennedy-Thompson, COO of Neighborly and Jeremy Hassell, CEO & Co-Founder of City Cave, will be joining the cast of speakers in Tauranga. THE AUTHOR Farrah Rose is head of international development at The Franchising Centre (thefranchisingcentre.com) . To learn more, or discuss how your franchise could work in this exciting and dynamic market, please contact Farrah at Farrah@thefranchisingcentre.uk GLOBAL-FRANCHISE.COM 35