Franchising In New Zealand

InfoFranchise.co.uk:

Franchise in New Zealand became very common as a way to into business only during 1990’s. Although there were some of the major overseas franchises and some local companies operating in the country, this wasn’t considered as an acceptable system to develop business. This fact was due to some high profile franchise failures during 1980’s.

Nowadays the situation has changed: franchising is flourishing and the market offers many opportunities to go into business by this system. Over 300 different franchise systems work in New Zealand, employing more than 70.000 persons, and around 14.000 outlets are counted in the country, usually based in large centres; the fastest growing sectors are: business and property services, construction and trade, personal and other services. The New Zealand franchise sector is estimated to account for a total annual turnover of 10 billion NZ Dollars.

As there is no specific legislation dealing with franchising, the sale of businesses and business practices is usually covered by normal commercial law.

Franchise in New Zealand can trust on the Franchise Association of New Zealand. It was founded in July 1996 to bring together all the members (now more than 175) of the franchise community, and aims to promote information and experiences sharing, standards settings and a best practice in franchising. Membership is open to franchisors, franchisees, and master franchisees as well as professional advisors or individuals with an interest in franchising. Before 1996 the association was a Chapter of FAANZ (Franchise Association of Australia and New Zealand); it became independent because of many differences between the two countries; nowadays the two associations have amicable relations and work together on matters of mutual interest.