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Although multinational fast food franchises have been in New Zealand for decades now, it has really been over the last 20 years that Kiwis have embraced the idea of franchising.
It is a country that knows the value of the franchise, as is demonstrated by the fact that is demonstrated by the 2017 survey which showed that New Zealand has one franchised unit for every 124 people.
If you are impressed by that fact, here are 9 more interesting things about franchising in New Zealand.
- Massey University Business School and Australia’s Griffith University published a survey in 2017 showing that there are around 37,000 franchise units throughout New Zealand.
- At the time, 124,200 New Zealand residents were employed by franchises.
- Over 70 percent of franchises operating within the country are home-grown.
- 40 percent of franchises are operating with less than 20 units, while 27 percent have 50 units or more.
- Although there is no franchise specific legislation in New Zealand, members of the Franchise Association of New Zealand, are required to comply with the Code of Practice and the Code of Ethics of the Association.
- The Franchising Confidence Index is New Zealand’s quarterly survey of franchising business confidence. In January of 2020 it showed franchisors "had a strong positive outlook for sales levels per franchisee" and "their own growth prospects".
- According to a recent survey, approximately 50 percent all franchise disputes are now handled through mediation rather than litigation.
- The franchise sector’s turnover is valued at around $17bn – or approximately 11 per cent of New Zealand’s GDP.
- According to sources, around 97 per cent of New Zealand’s businesses have fewer than 20 employees.
Find our more about franchising in New Zealand here.