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Franchising 2017 - Results of the Survey of Franchising in New Zealand

The 2017 survey of franchising in New Zealand was completed by over 160 franchise systems. The results which were recently published reveal that New Zealand is the most franchised country per capita in the world, with 631 different franchise systems and 37,000 franchise units.

The survey which was conducted by Massey University Business School of New Zealand and Griffith University's Asia-Pacific Centre for Franchising Excellence of Australia confirms that the turnover of the franchise sector has grown strongly since 2012, with the overall turnover being NZ$27.6 billion compared to an equivalent figure in 2012 of NZ$15.0 billion. That is an increase of 84% over 5 years and it does not include the motor vehicle sales or fuel retail which brings the total to NZ$46.1 billion.

The various sectors represented by franchising in order of merit are retail trade (non-food), other services, accommodation and food retail, administration and support services, rental, hire and real estate services, construction, arts and recreation services, and education and training. During the past 5 years 185 new brands entered the New Zealand franchising market which means more choice for business buyers.

Many people think of franchises as big international brands but the survey showed that 72% of the franchises operating in New Zealand are home-grown companies. Of the remainder, 17% operate by way of a local master franchisee or licensee, meaning that 89% of franchised brands operating in New Zealand are locally-owned and managed. The survey also showed that only 1.9% of franchisees were involved in disputes, and that 49% of all disputes are handled through mediation, not litigation.

It is fair to say that franchising is alive, kicking and developing at a very fast rate in New Zealand.

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