What Happens Next?

Franchisors urged to complete new survey to help sector create the future

In 2017, the Survey of Franchising proved that New Zealand was the most franchised country in the world, with more franchise systems and franchised outlets per capita than any other nation. The global economy has undergone massive changes since then, with lockdowns, increased digitisation, the growth of home delivery services and disruption of international freight and travel. What has this meant for franchisors and franchisees in New Zealand? The Franchise Association’s 2021 Survey of Franchising intends to find out.

Delayed from 2020 when the pandemic meant that franchisors needed to focus on supporting their franchisees, the new Survey will be launched in July. FANZ is keen that all franchisors, members or not, participate to give the fullest possible picture of the challenges facing the franchise sector. The Survey is being conducted once again through Massey University, and all data provided is treated as totally confidential.

‘The Survey will provide a much-needed snapshot of the franchise sector for Government, legislators, service providers and the general public,’ says Robyn Pickerill, CEO of FANZ. ‘At a time when small business has been hit hard by the global turmoil, and actual and proposed legislative changes are creating more challenges, it’s important that we get the fullest possible picture of the impact on franchising and the contribution that the sector makes to the New Zealand economy.

‘I encourage all franchisors to play their part in building that picture by completing the Survey when they receive it.’ The Survey results are due to be announced at the end of October.

The 2017 Survey found that there were 631 different franchise systems and 37,000 franchise units around the country, with an overall turnover of $27.6 billion. It also showed that 72 percent of the franchises operating in New Zealand are home-grown companies; of the remainder, 17 percent operate via a local master franchisee or licensee, meaning that 89 percent of franchise brands operating here are locally-owned and managed.

Last call for Franchise Awards

Entries are still open for the 26th annual Westpac New Zealand Franchise Awards, which are open to all FANZ members. The prestigious Awards are open to franchise systems, franchisees and specialist service providers, with an extra category having been added this year for regional master franchisees. Winners will receive considerable publicity and add value to their businesses. Entries close on 15 July.

Visa rules set additional requirements for franchisee businesses

FANZ continues to work with a number of Government agencies on matters relating to franchising, especially on employment issues. ‘For the past few years, we have worked with the Labour Inspectorate to help franchisors communicate best practice employment requirements to their franchisees,’ says Robyn. ‘The complexities of the Holidays Act mean this can be a difficult area for small businesses.

‘Another area which has recently been under review is work visas for immigrants. On 1 November 2021, the Accredited Employer Work Visa will be introduced, replacing six temporary work visas with one. Given that many franchises hire people on work visas in normal times, it’s important that they are aware of these changes – especially as additional requirements are being applied to franchisee employers under the new rules. These are detailed on the New Zealand Immigration website (see https://tinyurl.com/4p4h8535) and we will be sending out further information to FANZ members as it becomes available.’

New members

Association membership is open to those franchisors and service providers who agree to abide by the FANZ Code of Ethics and Code of Practice. ‘Franchisor applicants’ documents are verified for adherence to the FANZ Codes by an external scrutineer, and this is repeated every two years,’ says Robyn. ‘The process helps them ensure they are meeting best practice standards, and reassures potential franchisees or clients. Only by dealing with FANZ members do buyers receive the protection of the Codes, so membership is a valuable differentiator.’

The latest members to join are:

• Altitude HQ • Crank’d • Majestic • Skyzer

Contact FANZ CEO Robyn Pickerill (details below) for more information on the benefits of membership. FANZ members are clearly marked in the Directory at the back of this magazine.

Events Calendar

18 August Auckland Twilight Session

9 September Tauranga Twilight Session

30 October Auckland 2021 Franchise Awards

10 November Auckland FANZ Sunrise Session

18 November Tauranga Twilight Session

8 December Auckland Christmas Function

For more details of these and other events, visit the Franchise Association website at www.franchiseassociation.org.nz, email contact@franchise.org.nz or phone 0-9-274 2901.