Starting a franchise in New Zealand

Starting a franchise in New Zealand

If you are reading this article, it means you have some interest in opening a franchise in New Zealand. Businesswise it is a brilliant idea. Operating a franchise has its many benefits. Especially operating a franchise in New Zealand will surely give you a good Return on Investment.

Speaking of the economy of New Zealand, it is a highly developed free-market economy. The country relies mostly on the export market. It is the 53rd largest economy in the world measured by nominal Gross Domestic Product. Leaving all that technicality aside, the bottom line is, the country’s’ economy is favorable to any type of business, including the New Zealand Franchise.

A franchise is a marketing concept an organization uses to expand its business. The parent company is the ‘franchisor’ whereas the counterpart is known as the ‘franchisee”. In a franchise, the franchisor, licenses all its company’s’ functions, procedure, intellectual property, brand and the rights to sell its products or services to the franchisee. The franchisee also uses the business model that the franchisor implements. In return, the franchisee agrees to pay certain fees and complies with obligations as per the “Franchise Agreement”.

The franchise has increased in popularity during present times. So popular that there are 423 franchise systems, operating 450 brands making the country the highest proportion of franchise per capita in the world!

How to start a New Zealand Franchise?

It is easy to start a franchise in NZ. You will be delighted to know that when opening a franchise:

But there is a certain legal requirement that applies to franchise New Zealand. Franchise Association of New Zealand INC. (FANZ) The main requirements of the codes of practice are as follows.

The intended Franchisor must provide a ‘Disclosure Document’ to franchisee 14 days before entering the franchise agreement. This document usually contains Franchisors’ information, the franchise system & the franchise agreement, and business ideas in New Zealand.

The franchise agreement must contain provisions such as:

Requirements to set up a franchise in New Zealand:

Good to know tip*** If a company is registered in Australia, and they want to set up business in New Zealand, they have to register on the overseas register as well. But the process is simpler because of the New Zealand company’s office and the Australian Securities & Investment source documents from each other.

An overseas franchisor who wants to open a franchise in New Zealand must register as a foreign franchise.

There are many benefits that both franchisors or franchisees earn in a franchise deal. There are some disadvantages for both parties as well.

Note: You may read an article about the procedure to start a small business in New Zealand at Biz Blog.

For Franchiser in a New Zealand Franchise



For Franchisee in a New Zealand Franchise



In conclusion, franchise New Zealand will give you many benefits. If you have the monetary resources, experience, and perseverance, you may venture into a franchise.

Six steps to consider when buying a franchise in New Zealand

Price: Our advice to you is to buy what you can afford. So, buy a small franchise and grow it to big business. Also, be sure to get financial advice on how much you should borrow.

Industry: Research! Do not venture into an industry that does not make many sales. Look for industries that have improved sales in a given period.

Fit: The chosen Industry must be familiar to you. Does it fit you & the environment?

Comparison: After choosing a list of industries, you must research which industry will suit you best. Compare each industry and invest in what you find is the best option.

Professional Advice: It is always good to consult a professional when investing. You may need advice from legal & financial experts. They will guide you and help you make appropriate decisions. In a franchise New Zealand, you must see a solicitor to draft the franchise agreement.

Read Also:

Types of Companies in New Zealand

How to start a business in New Zealand

New Zealand Foreign Company Registration Process

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