New Zealand Franchise Overview
New Zealand welcomes franchise models from the United States in all sectors with service industry sectors considered in short supply.
Based on a per capita method, New Zealand has established itself firmly as the most franchised country in the world. Although 75% of the franchise models in New Zealand are born locally many master holders have exported their successful model, and sometimes invested in local corporate offices in Australia, the UK and the USA. Within New Zealand almost 700 brands are represented and the industry contributes almost $20 billion towards the countries GDP.
U.S. brands established in New Zealand account for only about 12% of the industry and tend to be from the food and beverage sector with a few service sectors being accounted for in property management and health and fitness. U.S. brands account for a significant larger proportion of the revenue credited to the sector simply due to their size and brand awareness. Starbucks, McDonalds, Pizza Hut to name a few, with Dominos enjoying over 20% growth in the last three years. In a 2017 report the average QSR spend was NZD$27 per visit, on par with most countries.
Market entry is considered easier than most westernized countries with no specific franchise laws laid down by Government. Laws include fair trading and local commerce and employment laws.
The industry is very well represented by The New Zealand Franchise Association, in place to protect franchise holders and lobby policy where it is deemed necessary and ensure a NZFA code of conduct is adhered to, but membership is optional. Other related support sectors include a selection of highly regarded law firms representing the industry both here and in the United States as well as a well-established finance support structure through local banks that include cash flow funding for overseas established and proven models.
The work ethic of New Zealanders blends well for franchise opportunities with many locals seeing the opportunity to work for themselves supported by positive and well proven models. New Zealand welcomes models from the United States in all sectors with service industry sectors considered in short supply.