Buying a Franchise: Financial Matters
doing business in THE NEW NORMAL Mike Haigh of Westpac on funding and doing business in uncertain times
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usinesses of all shapes and sizes, across every industry, are still adjusting to the ‘new normal’ in the face of the Covid-19 pandemic. No-one knows if there is more to come or when the world will return to previous levels of economic activity, but, as always, uncertainty presents both challenges and opportunities. Here are a few thoughts to help franchisors, franchisees and franchise buyers navigate through these interesting times.
Are the banks still lending? Interest rates are at record lows – but are the banks still lending? The answer is ‘yes’. However, they are more cautious, and more willing to lend to some industries than others. Buying a franchise business can actually improve your chances of getting lending approved, especially if you are buying into a recognised brand with a history of viability throughout the economic cycles. One thing is for sure: it is more important than ever to find a bank that understands you, your proposed business, and your future plans. Choosing a bank that has a strong understanding of the franchise model can significantly improve the chances of getting a loan approved.
g n i s i h c n a r f g n Taki ! s t h g i e h w e n o t A unique opportunity exists for the right person to purchase an Accessman Franchise
Act Now!
Exciting new franchise options available throughout New Zealand
0800 2GET HIGH
franchises@accessman.co.nz
www.accessman.co.nz
Mike Haigh
The unemployment opportunity After many years of low unemployment, the impact of closed borders on certain industries means that there are more people looking for both employment and business opportunities. For example, there are a lot of well-trained people from the airline and tourism industry who have transferable skills. A franchise can offer an excellent opportunity to go into business for yourself for the first time, offering training, support and systems in areas where you may not be confident and enabling you to put your efforts into a business model that has been proven to work. Rising unemployment also means that there will be a much higher number of people applying for jobs, and a higher quality of candidates. If your franchise employs staff, this is good news – the lack of good candidates has held back the growth of many businesses over the last few years.
Business location People increasingly working from home has meant a sharp increase in commercial growth in the suburbs and regions. Some suburban
ANCHISE
EXCITING FR
OPPORTUNITY
Brand new store on a turnkey basis! • Affordable, accredited nationwide franchise • Group buying power • Simple business model • Full/ongoing training • Fresh, new branding • Comprehensive marketing support • Integrated point-of-sale • Low wastage operation • Jesters is more than just a pie shop! All new stores are equipped with a pie van, Kindo school fundraising and VIPie loyalty programmes, and catering solutions W E ’ R E L O O K I N G for passionate franchise partners to bring our ‘pies to the people’! For further information email mike@number8rg.co.nz
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Franchise New Zealand
Spring 2020
Year 29 Issue 03
