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New Zealand Franchise Statistics
What is Franchising
Is a method of marketing and distribution whereby a company (called the franchisor) expands nationally or internationally by granting a person or company (called the franchisee) the right to operate a copy of its business in another geographic area. The right will usually include the ability to use the name, the business system and the know-how of the franchisor.

The franchisor gains his or her income from initial and ongoing fees paid by the franchisee. In return, he or she must provide a variety of services to encourage the continuing profitability and growth of the franchisee’s business.

The franchisee pays to set up the business in their area and is the owner of their own business. They receive their income from successfully marketing a desirable product or service under a promotable brand name.

Is Franchising Reputable?
Franchising has proved to be one of the most dynamic business methods of the past 50 years. It enables companies which have a good product or service to expand faster because they are using the capital, local knowledge and commitment of individuals who are in business for themselves.

It gives those who wish to be self-employed the ability to go into business properly trained and equipped, with the security of a well-proven product and system beneath them.

Franchising is a reputable part of daily life in New Zealand. Many of our best-known brands are actually franchises: Lotto, Stirling Sports, Robert Harris, Cash Converters, Green Acres, Paper Plus, The $2 Shop and, of course, McDonald’s. Franchising should not be confused with ‘pyramid selling’ or network marketing.

How Big is Franchising in New Zealand?
According to the 2003 Survey of Franchising organised by the Franchise Association, the sector is worth over $6.9 billion. There are over 350 franchise systems in New Zealand (74% of them home-grown), and almost 5,000 operating units. Franchising employs over 40,000 people.

Source: Franchise Association of New Zealand

New Zealand Franchise Statistics | New Zealand Franchise Statistics

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