Franchise New Zealand - Year 32 Issue 01 – Autumn 2023

Enjoy a successful business with a great lifestyle in the Regions

Franchise owners Maunghla Pan and Mu Ban Peh, who run a proftable CrestClean business in Nelson, enjoy living in a vibrant regional city where everything is close by.

This is the type of lifestyle available to CrestClean franchisees operating successful businesses in the regions. With lower living costs and cheaper housing, now is a great time to make the move. Buy a CrestClean franchise in any of the regions on the map and you can get up to $3000 towards relocation costs. We have fnance options available to help get you started, plus great operational and administration support from NZ’s leading small business franchise system.

We have high demand for new franchisees in these regions

Whakatāne

Kerikeri

Hamilton Taranaki

Nelson Wānaka Timaru Alexandra Cromwell

Whangārei

BUILD YOUR FUTURE WITH THE RIGHT TOOLS

Many people are realising that franchise business ownership could be an opportunity to rebuild their careers, or live life on their own terms.

Goodwin Turner understands what it takes to turn a thriving business into a viable franchise by laying the legal foundations to help you reach your goals.

Create or maintain your own successful franchise system with legal specialists who focus on getting the legal nuts-and-bolts right - advice on franchise agreements, contractual obligations and fair trading regulations, through to intellectual property, corporate structuring and employment law.

Global Law Experts

• Franchise Law Firm of the Year - every year since 2014

Who’s Who Legal

• Recognised Leader in Franchise Law - every year since 2017

Goodwin Turner are franchise specialists with a team of industry leading legal experts. You can be assured of receiving practical commercial advice and individually tailored

For sound legal advice you can rely on – call us today.

Want to join New Zealand’s premium building franchise?

Landmark Homes builds top quality, award-winning, architecturally inspired houses across New Zealand and is looking for highly driven, motivated franchisees to join our fast growing network with opportunities in Northland, Nelson, South Canterbury, Central Otago, Dunedin, and Southland. Building Landmark homes for 45 years, our reputation is second to none - we provide our clients the best quality, design, service, craftsmanship and value for money, and our franchisees are integral to this.

2023 didn’t get off to the start any of us wanted, with floods and storms inflicting terrible damage in many parts of the country. It was a reminder that you can never know what is round the corner. If you’re thinking of starting or buying a business right now, that can be a scary thought – but does it have to be? When you have financial and life goals to achieve, it’s important to take a longterm view. As a business owner, you will face the unexpected every day, so what matters is how prepared you are for it.

It’s not just weather events that can throw curve balls, either. At the moment, inflation, staff shortages and supply chain issues are creating challenges – yet business goes on. The reality is, there will always be challenges of one kind or another and, as our cover story explains, that’s where being part of a franchise is a huge advantage. The foresight, support, experience and buying power of a good franchisor can make all the difference.

In the following pages, you’ll find plenty of advice to help you choose a franchise that will give you all those advantages and more. Apart from the cover story (page 6), there’s a look at what makes a quality franchise (page 48); what franchise fees pay for (page 40); and a guide to franchising for newcomers (page 90).

Your Personal Wheel of Fortune (page 28) will help you work out whether business ownership really will suit you; there’s a plea to find out what a franchise really involves (page 56); an explanation of how to get good advice (page 72); and thoughts on buying a franchise if you’re facing redundancy (page 62)

And, as always, we share franchisees’ own stories, profile a number of exciting new and established opportunities, and there’s a rare chance to join one of the biggest and best retail brands in Australasia.

Happy exploring!

Simon Lord Publisher, Franchise New Zealand

PS. If you want another free print or digital copy of this magazine for yourself or a friend, call 0800 FRANCHISE or visit www.franchise.co.nz

Every

Welcome to New Zealand's BUY YOUR OWN BUSINESS magazine

9 Homes That Are Always In Style

Heritage Homes wants franchisees who care about craftsmanship

11 Fresh Choice For Franchisees

A rare chance to own your own supermarket from one of Australasia’s biggest retailers

13 On The Pulse

Bodypulse franchise taking off with health benefits for all ages and abilities

15 From Virtual To Reality

FiSBO is the new marketing franchise that can take you from side hustle to big business

16 Franchise News

Some of the top stories from our website and news feeds

19 Height Of Success

Accessman offers established high-performing, high-return opportunities in Auckland and elsewhere

21 Money In The Bank

Eftpos NZ helps franchisors build franchisee efficiency and profitability

22 Funding Your Franchise Business

Daniel Cloete of Westpac discusses issues to look out for in the current economic climate

25 Finding The Right Buyer For Your Business

When it’s time to sell the business you’ve

36 Effective Local Marketing Made Easy

How one of the world’s leading franchises ensures its local area marketing stays effective and on-brand

39 The Numbers Stack Up

The Office Professionals is an opportunity for bookkeepers with big ambitions

45 Change For Good New Paper Plus owners achieve their dreams with businesses they love

47 Build It And They’ll Come

Speed Queen owners enjoy reliable machines, reliable demand and reliable returns

48 What Makes A Quality Franchise?

Buying the right franchise can take the fear out of starting your own business – but how do you choose a good one?

53 Creating New Stores On Time, On Budget

Spaceworks are New Zealand’s trusted design/build/procure retail roll-out professionals

55 We Walk In Your Shoes

SBA Small Business

Accounting understands your business – it’s a franchise, too

Buying a franchise doesn’t mean success is guaranteed – so get the right advice

Editor

Simon Lord Business Development

Sally Knight

Lorraine Lord

Writers

Glenn Baker

Crispin Caldicott

Ross Lindsay

Catherine Lord

Autumn 2023 Year 32 Issue 01

56 Read Your Franchise Agreement

Don’t store up trouble for the future, says Jason Gehrke

59 Awards Mean Rewards For Franchisees

Cleantastic franchisees can double their investment with a guaranteed income

60 Interesting Times

This year’s FANZ conference theme is Meeting the Challenge – Driving Opportunity

62 After Redundancy

Facing redundancy? What are the pros and cons of buying a franchise?

64 Making A Clean Break

From driving a truck to steering his own successful Paramount Services business

67 Values And Returns

Just Kidz is for active investors and people passionate about children

68 Online Advice

Franchise New Zealand’s website has lots of free advice for franchise buyers

71 Truly Green Outlook

SmartGrass is passionate about creating amazing places and caring for our environment

90 Franchising 101

We answer 5 common questions about franchising

76 Westpac Directory of Franchising

Comprehensive details and investment levels for over 275 franchise and master franchise opportunities. Also includes advisors and index to advertisers

Submissions

Editorial submissions and advertising enquiries should be directed to the publisher. All articles published become copyright ©Franchise NZ Marketing Ltd Conditions

The publisher in its sole discretion reserves the right to refuse to publish any advertisement received if the publisher considers that the publication of such advertisement would be undesirable in any way.

Disclaimer

All franchise and business opportunity features included within this publication are paid advertorial approved by the client concerned.

Inclusion of any franchise system, business opportunity or professional advisor within this magazine does not imply endorsement by the publisher or the FANZ. Persons entering into franchise agreements are strongly advised to seek their own professional advice.

Neither the publisher nor the FANZ accept any responsibility or liability for views or claims expressed in Franchise New Zealand. Opinions expressed by contributors are their own and not necessarily endorsed by the publisher or the FANZ.

VISION

What do you want out of life? Increased net worth, financial independence, a home of your own, a good education for your children? Do you want to be your own boss or contribute to your community somehow? These are the goals that help you create what you want in your life.

The important thing to remember is that these goals all require longterm thinking – you can’t achieve them overnight. And when you buy a franchise, it’s wise to apply that long-term approach, too. How many years are you prepared to put into a business of your own – and what do you want to get out of it? According to surveys, most franchisees in New Zealand stay with their chosen system for over 8 years – almost 20 percent stay more than 10 years. And there are many examples of franchisees like Mike Vickers, who has been with V.I.P. Home Services for 20 years already and has no intention of stopping (see page 33).

That’s why, although it’s important to know how long your business will take to break even (pay its own way) and to generate personal income in the short term, it’s also important to consider your long-term prospects.

What goes around, comes around

Over the course of, say, 10 years, any business is going to face challenges. The changing economic cycle will see periods of boom and bust, rising and falling employment levels, changing rates of inflation, and higher or lower interest rates. Experienced franchisors – and franchisees – will already have lived through one or more of these cycles. For the new business buyer, then, what is important is not so much where we are on the cycle right now, but how well their chosen franchise can perform over time.

‘If you look at the share market, shares go up and down in value constantly, but the underlying trend for good companies has historically been positive,’ points out Daniel Cloete, Westpac’s National Franchise Manager. ‘That’s why shares are best viewed as a long-term investment. If you apply a similar approach to buying a franchise, and choose something that not only suits you personally but is solid, profitable and sustainable over time, then you can do very well.

‘The normal business environment is one of ups and downs. If the business you are looking at can deliver positive results in the current tight market, then it’s a good sign. It means that when conditions ease, you’ll be well-placed to reap the benefits.’ The story of Jas Kaur and Mani Singh (see page 35) is one such example.

Advantages of franchises

As Daniel says, one of the advantages of buying a franchise is that it’s a lot easier to find out about how the business really performs than if you buy or start up an independent business. ‘People might show you their pre-Covid figures, but the world has changed since then and what is important is how the business is performing now, and how it could perform in the future.

‘If you buy a franchise with an established company, you’ll be able to check the reputation of the brand and how it has fared during previous downturns, but you’ll have access to so much more information, too: information from across the whole network on rents, sales, wages, Gross Profit margins, and you’ll be able to compare your prospective figures to these to assess the long-term potential of your investment.

‘Talk to accountants who know the franchise, talk to other franchisees in the group, and don’t be afraid to talk about risk. Just as with buying shares – or property – starting any business does involve risk and you need to be comfortable with the level of risk you are taking on.’

how buying a franchise can help you achieve your long-term goals

VISION

Reducing risk

Daniel continues, ‘A good franchisor will work to reduce risk for its brand and its franchisees all the time. For example, franchisors normally have supplier arrangements in place which have helped them deal better with the supply chain issues of the past few years. The result was that their franchisees had supplies, while others ran out. Leases are another area where franchisors are getting directly involved to lessen the impact of inflation on franchisees. The result is that, even in the current market, some of our franchise clients are still very profitable.

‘And don’t discount the value of the franchisor’s oversight. One large franchise I talked to recently collates information throughout its network to produce detailed analysis of the margins on all its products. They take action if the margin moves a fraction. This is why you pay a premium for their franchise system – their pro-active approach lowers the risk for their franchisees.’

Newer systems

What about newer franchise systems which might not have the experience or size of some of the more established brands?

‘It’s fair to say that there is a higher risk with a new franchise, and you shouldn’t discount that, but there are also potentially higher rewards, too,’ says Daniel. ‘Entry fees should be lower, because you aren’t paying a premium for an established brand, and there will be more choice of territories, better locations and quite possibly less competition, too. Some hot new franchises can drive unbelievable numbers, and that applies just as much in the regions as in the cities. But the risk is higher with a newer brand, so you need to do your research and take all the advice you can from experienced professionals to lower your risk as far as possible. (see page 72)

‘One thing you will have to be aware of is that when you are seeking funding, a new franchise will require you to have more security or more equity than an established brand with a proven track record.’

How long do you have?

One major difference between a franchise and an independent business is that franchises are usually granted for a fixed term, often with rights of renewal. A common approach might be a 5-year initial term with two further terms of 5 years, giving a possible 15 years in total. Why not just grant a 15 year term in the first place? Dr Callum Floyd of Franchize Consultants explains.

‘It’s as hard for franchisors to see 15 years into the future as it is franchisees, so the shorter terms with rights of renewal enable the franchise to better evolve over time to suit changes in the sector. In practice, as we’ve seen, most franchisees renew for at least one term, and I know of many examples where franchisees have been with a system for over 10 years through several renewals. If a franchisee’s business is going well, the franchisor will almost always want to renew the term.

‘The other reason for terms is in retail-based businesses where the franchisee is reliant upon a particular location – say, in a mall. In that situation, it makes sense to tie the length of the franchise term to the length of the lease term. It’s not so important in home- or service-based businesses.’

Solid returns in good times and bad

So when Franchize Consultants are advising new franchisors, what do they take into account? ‘Any franchise model needs to be able to produce a solid Return on Investment (ROI) for both the franchisor and the franchisee, ideally within the period of the initial term,’ Callum says. ‘It needs to be reliable and robust, so that it’s not just reliant on the economy doing well; it can ideally be scaled up or down so that it remains sustainable in good times and bad.

‘We pressure-test the model for profitability at franchisee level, taking into account the franchise fee, due diligence costs, training, working capital, vehicle costs and likely financing costs, as well as potential owner returns. If the franchisee is investing $500,000, how long before they get it back and start to make a good return? And if the intended ROI is, say, 20 or 30 percent, how do the upfront and ongoing costs allow for that, and how long should the franchise term be? If you can create a model that achieves a good return in the initial term, then subsequent terms become even more attractive.’

Three ways to make money

When it comes to evaluating a franchise business over a longer term, there are three potential sources of returns:

1. Return on Investment (the capital you have put in);

2. Owner’s salary or drawings;

3. Profit upon sale.

This last can be another big benefit of buying a franchise, as brokers say that known brands tend to attract more buyers and higher resale values.

‘Again, this is an area where the ability to compare results across a franchise network has real value,’ says Callum. ‘And be aware that in some industries, a business can be almost too successful to sell – a construction company with profits of $600,000, for example, might not sell easily because people willing to put in the work don’t have the capital to pay what the seller expects. In this case, the long-term return is more about what you earn along the way – which is why it’s important to be clear about your goals at the start.’

Lawyer Stewart Germann says that if resale is an important part of your planning, you should work hard to build up the goodwill. ‘A profitable business should have considerable goodwill by years 9 or 10 and that may be the time to sell it. That way, the purchaser still has a 5-year term to go, and I’d suggest he or she would ask the franchisor for one or two additional rights of renewal on top.’

In summary

• Buying a franchise is not a way to ‘get rich quick’ overnight.

• To maximise your return on investment, you need to think 5-10 years.

• Returns can increase even more after this time.

• You’ll probably go through the ups and downs of the economic cycle at least once during your time as a franchisee.

• If you choose a franchise that is sustainable when the economy is down, like now, you should do well when it’s up.

• Established and new franchises have different risks and rewards.

• The initial term should be long enough to offer a fair ROI.

• Don’t automatically rely upon resale value to make your figures work, although it can be an additional benefit.

• Franchises are often worth more than independent businesses.

• Think about the best time to sell well in advance.

• Take good professional advice.

Heritage Homes wants franchisees who care about relationships

Classic New Zealand houses have a beauty and style all of their own but, as anyone who has ever lived in an old villa knows, they can also be draughty, damp and downright uncomfortable.

That’s where Heritage Homes comes in. The company uses sustainable technology to create modern homes to the latest specifications which retain the stunning look of classic, timeless designs. Founded by a third generation master builder – and now run by the fourth generation –Heritage Homes has built an enviable and award-winning reputation for quality over the last 20 years. Due to demand, the company is now looking for franchisees in prime locations throughout the country.

‘There are many housing companies doing new builds looking like the latest trend, but at Heritage Homes we specialise in something more personal and considered,’ says John Mitchell, whose father founded the company. ‘My grandfather was a master mason as well as a builder, my father and I started as carpenters – there’s a huge history of craftsmanship in the family. That’s what we reflect in Heritage Homes, combining traditional designs and technique with modern technologies.

‘Our clients aren’t generally first home buyers; they want something a bit different, and they are prepared to pay that little bit extra for it,’ John explains. ‘As a result, Heritage Homes has proved well able to weather the ups and downs that affect others in the building industry.’

Homes that builders love to build, and owners love to own

Hayden Jones, the General Manager of Heritage Homes, says that the company offers a wide range of services. ‘We have a range of popular designs for villas, bungalows and cottages, and ancillary buildings too. We also offer custom builds uniquely designed with each client’s input and fully tailored to each family’s needs, and can offer house and land packages, too.

‘Our franchisees have access to all these designs and expertise, with management systems and software designed to help them produce homes that builders love to build, and owners love to own. We are recognised nationally with preferred suppliers, and leverage discounts and support to enhance profitability and supply.

‘After working with a few licensees around the country to gain experience, the franchise has been developed through the team at Tereza Murray Franchising to ensure that it really can deliver a profitable business model for franchisees. We are also members of FANZ.

‘The franchise will appeal to people who set and expect high

standards of themselves and those they work with. You might have been second-in-command at a building company and be ready to do something for yourself, have industry experience or sales and marketing experience –this business is all about relationships.’

Franchisees not necessarily builders

Hayden says, ‘Our franchisees are not necessarily builders themselves: they put together a team to work on each project and are the first point of contact for everyone from client to contractors. The nature of our product means we work with quality craftsmen to do a quality job, with everything scheduled to keep everyone happy.

‘It’s especially well-suited to an ambitious couple who have the professional skills between them to manage multiple projects with all the personal contact, scheduling and administration that involves. And, of course, you’ll have the full support of the Heritage Homes team and system behind you. We’ll help you find the right people to work with, assist with the designs and technical side, manage bulk purchasing and provide quality assurance.

‘Because every Heritage Home is different, that quality assurance provides real peace of mind. In fact, John’s ambition is to visit as many Heritage Home builds as possible to ensure the owners are happy – imagine how good that would make them feel!’

Affordable for the right people

Hayden is keen to talk to people who are interested in building their own Heritage Homes business in most parts of New Zealand. ‘The total initial investment has been kept low, at around $50,000, which includes the exclusive territory fee, training, launch marketing and everything you need to get going,’ Hayden says.

‘Show homes are a key to sales. If you can fund one yourself, great – if not, we will work with you to find an investor in your area and negotiate discounts from other suppliers with you. That makes it a very affordable way to get into your own business.’

As John says, ‘Finding the right people is more important than finding people with the right money. We want like-minded people with high standards who are friendly, motivated and, above all, want to create homes that they can be truly proud of.

‘We are the only franchise combining traditional building designs and modern building techniques, so this is a rare opportunity to enter a highly profitable part of the home building market under the mentorship of industry leaders with decades of experience. We want to hear from you, so contact our broker, Nicola Bow, today and we’ll be happy to share more details of the Heritage Homes opportunity.’

Hayden Jones and John Mitchell

Opportunity: Retail

A rare chance to own your own supermarket from one of Australasia’s biggest retailers

FRESH CHOICE FOR FRANCHISEES

In retail, big names don’t come much bigger than Woolworths – and that’s who you’ll have as a partner if you become a supermarket owner with FreshChoice. There are already 72 franchised SuperValue and FreshChoice (SVFC) stores around the country, and Operations Manager David Callaghan says his personal goal is to increase that to 100 over the next few years.

‘With access to the additional buying power of Woolworths NZ, SVFC franchisees operate community-based supermarkets in smaller towns and suburban centres across New Zealand,’ David says. ‘We are now planning new full-scale FreshChoice stores, and looking for franchisees for both new and existing locations.

‘In addition to individual stores, multi-ownership is an option – several of our existing franchisees have two or more stores, which can provide some economies of scale and potentially an even greater return on investment.’ Investment levels start from around $2 million, with some personal equity required, ‘although this is negotiable on a case-by-case basis,’ says David.

Backed by the best

New franchisees have access to considerable resources through Wholesale Distributors Ltd, a wholly-owned subsidiary of Woolworths New Zealand, says David. ‘There are distribution centres around the country, and the company’s size enables it to purchase stock, provide plant equipment, and source technology efficiently and cost-effectively.

‘There’s a range of support services with regular visits and business advice from an experienced retail team, a dedicated IT department and, of course, a whole range of advertising and marketing support from group-wide and national promotions, point of sale, social media and e-commerce.

‘Merchandising expertise is another key area and, of course, FreshChoice and SuperValue franchisees have access to Woolworths own-brand ranges, WW and Macro – an ever-expanding range of organic health food and cleaning products.’

What do you need?

So what skills do you need to own and run your own supermarket?

‘This is very much a hands-on business which requires a hands-on manager, not a passive investor,’ David says firmly. ‘Small stores are a 7-day operation, 10-14 hours a day, turning over $5-6 million a year.

‘A lot of people like the idea of owning a supermarket, but success doesn’t happen by accident. We’re looking for people who understand the robust requirements of running your own business, day in, day out. You need business acumen, the ability to read and interpret a lot of data, and make good decisions based on that data. You also need the ability to build and lead a team of 10-15 people or more, and to understand the obligations that come from that.

‘While retail experience is valuable, some of our franchisees have come from many different businesses and professions outside the retail industry. They understand the importance of systems, routines and are used to handling pressure and dealing with people and situations. That’s why each new SVFC franchisee goes through an individualised training programme of between 12-24 weeks according to their experience. That way, they learn every aspect of running the business – and, of course, they can then call upon expert advice from our teams on an ongoing basis.’

Share, learn and succeed

SuperValue and FreshChoice franchisees are encouraged to share ideas and experiences with their peers, and to learn from each other. ‘There are a number of full group meetings a year for all franchises and senior members of the franchisor team, and an annual conference to review progress, plan the year ahead, discuss new developments and network,’ David explains.

‘All in all, SVFC is a big opportunity for the right people to build a sizeable business of their own, backed by one of the biggest names in Australasian retail. We want to hear from people with the skills and commitment to take on the challenge and succeed. Contact me to find out more.’

Advertiser Info

SuperValue FreshChoice www.freshchoice.co.nz www.supervalue.co.nz

Contact David Callaghan P 027 494 8361 david.callaghan@ woolworthsnz.co.nz

Wholesale Distributors Limited (WDL) is the franchisor for the FreshChoice group of supermarkets. WDL have supermarkets nationwide, but are always looking for new and exciting opportunities to expand throughout New Zealand.

WDL is a division of Woolworths New Zealand (WWNZ). WWNZ in turn is 100% owned by Woolworths Limited which is one of Australasia’s largest retailers.

All our stores are locally owned and operated. Our owners and store teams care about building strong connections to the communities they serve, and are constantly striving to inspire and engage customers. We are proud of the passionate people that represent FreshChoice, and they in turn are proud to be advocates of it.

If this sounds like an opportunity your interested in, please get in touch with Operations Manager David Callaghan from the details in the advertorial.

Ross and Sue Clark of FreshChoice Cromwell

ON THE

Bodypulse franchise taking off with health benefits for all ages and abilities

The key to a successful franchise is recognising a gap in the market – and that’s what Belinda Koloamatangi recognised in Bodypulse. With previous experience as a successful owner/operator in the fitness industry, she recognised the unique advantages Bodypulse could offer to a broad target market. Since opening her own Bodypulse studio in Richmond, Nelson, two years ago, she has seen unprecedented growth.

‘Bodypulse offers a revolutionary fitness concept that appeals to a wide range of individuals,’ says franchisor Mitchell Wilson. ‘Bodypulse is one of the world’s most efficient full body workouts, combining stateof-the-art wireless Electro Muscle Stimulation technology (EMS) and systemised coach-led workouts at our private boutique studios. It’s specifically designed to improve energy levels and strength while being easy on joints and reducing back pain.’

EMS is one of the fastest-growing sectors in the fitness industry, thanks to its proven effectiveness and low level of investment in comparison to other fitness business models, says Mitchell. ‘In Europe, EMS has revolutionised the fitness market – over 6000 EMS studios have already been established, and the rest of the world is now discovering the concept. Bodypulse is ready to do the same for the New Zealand market.’

What makes Bodypulse different?

Bodypulse training works for a range of clients, from beginners and people of all ages, abilities and sizes, to seasoned athletes. Mitchell explains, ‘Touch-screen tablets enable coaches to dial in individual training zones from Bodypulse’s state-of-the-art wireless training suits. The suits deliver pulses to specific muscles, providing resistance instead of your typical gym weights. It means less stress on joints and supercharges your exercise, giving your body a deeper, more effective workout, all in a fraction of the time.

‘Bodypulse TV screens guarantee a consistent service is offered by coaching staff, ensuring a seamless world-class experience. The combination of EMS suits, advanced technology and systemised coaching, coupled with proven results and a welcoming modern studio, create an environment that leaves clients ready to return for more.’

While traditional strength training typically activates about 35 percent of muscle fibres within the targeted muscle group, EMS training simultaneously activates over 90 percent of major muscle fibres within the entire body.

‘As a result, just 20 minutes once a week is all it takes to empower everyday people everywhere to become fit for life.’

Fit for business

Belinda was looking for a flexible business opportunity that would work with her young family when she came across the Bodypulse studio. ‘I was immediately hooked – it’s a great way of incorporating low impact training that is completely suited to today’s “time poor” lifestyle.

‘Due to the innovative and comprehensive business model and approach, I have found it’s a simple and effective franchise formula that requires minimal staff and physical space, resulting in cost-efficient operations for me.’

Belinda has found the process of establishing and growing her boutique studio extremely rewarding. ‘You are truly changing lives through fitness and community. Feedback has been phenomenal with inspiring stories reinforcing my belief in Bodypulse and what it offers its clients.

‘In regard to operating the franchise, everything is streamlined and easyto-follow. I simply add my own personality when interacting with clients to create the right kind of community and culture.’

Full training provided

Mitchell had franchise experience in multiple industries prior to creating Bodypulse’s simple and highly-effective franchise formula.

‘As a business, Bodypulse has a lot to offer: the technology is a proven concept, it appeals to a wide range of people, it has genuine health benefits for all ages and, best of all, it’s a lot cheaper to set up than many other fitness concepts.’

A Bodypulse franchise offers:

• A unique selling proposition

• Recurring revenue model

• Minimal staffing needs

• Small space requirement

• Comparatively low initial costs

‘We provide all relevant training to franchisees, so it’s not necessary to have an existing professional fitness qualification to start the business,’ Mitchell says. ‘However, it is important to have a strong belief in the benefits of fitness.

‘Prospective franchisees should be dynamic with an excellent sense of customer service and rapport with people. It is also important to have a strong sense of drive and motivation to succeed as an entrepreneur and be committed to running the business.’

A business with a lot to offer

Following Belinda’s success, Kate Morris, a registered nurse and previous client of Bodypulse Richmond, is currently preparing her own studio – also at the top of the South Island. Recognising the health benefits, and the optimisation of both technology and a systemised business model, she is excited to share Bodypulse with her community.

Mitchell concludes: ‘Bodypulse is perfectly placed within the highgrowth boutique fitness market. Given the increased awareness around living a healthy lifestyle, getting fit and staying active, Bodypulse is ready to explode into the New Zealand market.

‘The timing is right, so get ahead of the curve and take advantage of this opportunity. Contact me now to find out more.’

The Bodypulse training suit delivers EMS pulses where they are needed

Belinda can dial in training zones to suit each client’s needs

FROM VIRTUAL TO REALITY

Real estate can be a tricky business. When property prices go up, commissions mean that sellers have to pay their agent more for doing the same work. And when prices dip and home owners need every dollar they can get, it’s not easy for them to find savings to offset their loss.

But things are changing and, here in New Zealand, FiSBO® is leading the way. The brand combines personal service from local franchisees with the latest in Virtual Reality and Artificial Intelligence to offer sellers the opportunity to market their own homes professionally, quickly and easily through a choice of fixed-price packages.

With almost $20 million-worth of properties sold already, FiSBO is now franchising throughout New Zealand, offering good gross margins and low overheads from this work-from-home opportunity. You don’t need to be a licensed real estate agent and, perhaps best of all, you can start part-time and keep your current job as you grow your business. Ingoings are just $25,000 plus working capital for the first six months.

Why FiSBO?

But first, what does that name mean? Founder Ben Keehan explains.

‘One of the fastest-growing sectors of the property market overseas is private sales, called For Sale By Owner. What we have done is create a range of digital solutions for that sector to create For internet Sale By Owner – FiSBO. It’s our own registered trademark.

‘Our franchisees create a professional campaign for owners and help run all open homes and viewings. Listings are advertised on TradeMe, homes.co.nz, and social media sites, as well as our own, and interested parties register on FiSBO.

‘Unlike an auction site, FiSBO can accept terms such as cash offers or offers subject to finance, so once there are interested buyers, our custom-built automated app helps owners select or negotiate the deal that best suits them. Conveyancing is then handled by their own solicitor. As the communication is direct between buyer and seller, no real estate licence is needed.’

Easy to run, easy to make money

So what skills do you need? The system does it all for you, says Ben.

‘Our franchisees take photos and video of the property for the sellers, and make a list of features. We provide all the software and systems for franchisees to create and then run their customers’ campaigns with photos, VR tours, signage and more. We have AI to help generate scripts from the property features.

‘Our automation then deals with all expressions of interest without the need for an agent. That saves both seller and franchisee a lot of time which they can put into the area where personal contact is really needed. A normal residential campaign requires about 10 hours of work from the franchisee, including open home time, which is very different from the input required of real estate salespeople and creates much better cashflow.

‘We don’t charge commission – we provide free quotes, invoice on acceptance, with deposits paid to confirm the job. It can be very profitable – a typical campaign can generate an hourly rate for the franchisee of over $400 per hour!’

Based on experience

FiSBO brings together Ben’s considerable experience in franchising, digital and real estate. He was a franchisee himself with a well-known retail brand which was a leader in using technology, then spent five years in the business-to-business market with Vodafone, creating solutions to streamline online operations.

After that, he joined a large real estate company, developing virtual tours and other software. ‘Traditional agents were resistant but I could see the potential, so in 2019 I left to start up my own business,’ Ben explains. ‘It proved to be good timing – the arrival of Covid drove more people online, and the simplicity and transparency of the FiSBO service gained immediate traction.’

With the system proven and a growing reputation, Ben turned to the team at Tereza Murray Franchising to create a viable business package.

‘For franchisees, just one listing a month will cover all your costs, and after that you are into real profit. Unlike a real estate company with multiple salespeople, offices, admin overheads, etc, FiSBO franchisees can easily handle four listings a month working from home.’

No experience required

Ben says you don’t need real estate experience to succeed as a FiSBO franchisee, and full training is provided. ‘This is about meeting people, building relationships, holding their hand a bit and providing a valuable service. Some sales and marketing ability is required, and you need to be tech savvy, but it’s not a hard business to run.

‘In terms of hours, Sundays are a must for open homes, with mid-week work as required on a per-gig basis. You can decide how far to take your business. Do you want to start as a side-hustle doing one job per week, or do you want to build a bigger business with a team of consultants? You decide.

‘This is a new opportunity offering new solutions in one of the biggest industries in New Zealand. Our first franchisees are already coming on board, so be quick to express your interest in prime territories around New Zealand. Hop on to the FiSBO website to see us in action then give me a call.’

FiSBO can take you from side hustle to big business with a flexible high-profit low-overhead business

FiSBO founder Ben Keehan

Aiden Doran, FiSBO franchisee for Hawkes Bay, wih Ben

UPDATES FROM OUR WEBSITE

Our pick of the top news stories from www.franchise.co.nz

Franchise New Zealand is much more than a magazine. To keep up-to-date with news about franchising in New Zealand and interesting stories from overseas, go to www.franchise.co.nz, sign up for our free newsletter and follow us on Facebook or LinkedIn. Here’s a summary of some recent stories – read the full articles on the site.

Former liquor store employees to be paid outstanding $260,000

Five former employees of Auckland-based liquor stores are in the process of getting paid a total of $259,685 arrears after the Employment Court found their former employers guilty of violating minimum pay and holiday rules.

Judge Kathryn Beck ruled that the owners of the Nikhil Himalaya Group of companies, Ravinder Kumar Arora and his wife Anuradha Arora, were liable to pay arrears to the former employees for failing to pay minimum entitlements. The Group operated stores under the Bottle-O franchise brand.

‘It’s a great outcome for the former employees, especially during these difficult times. This is money that they are rightfully owed and will be receiving it promptly - within a few weeks of the decision,’ said Stu Lumsden, Head of Compliance & Enforcement, Labour Inspectorate.

Many franchisors have taken steps to ensure that their franchisees are obeying the law or have their franchises terminated, including working with the Labour Inspectorate and immigrant groups. However, the actions of a few rogue franchisees have also cost other franchisees dearly, with the Accredited Employer Work Visa scheme introduced last year costing franchisees of any brand more than five times as much as independent business owners. MBIE told Franchise New Zealand that a review of the scheme was expected in 2023, after the scheme has been operating for a year.

Franchising unites to support Pork Pie Charity Run

As we publish, two franchising personalities are on the long, long road from Paihia to Invercargill in the cramped confines of an original Mini – and raising money for KidsCan along the way. The Pork Pie Charity Run is a biennial fundraising road trip based loosely on the route taken by the Blondini Gang in the classic Kiwi movie Goodbye Pork Pie

The first run took place in 2009 and this year will once again be supporting KidsCan, New Zealand’s leading charity dedicated to helping Kiwi kids experiencing hardship by providing food, jackets, shoes and health products to schools and early childhood centres across NZ.

Long-time friends Nathan Bonney, of franchise brokers Iridium Partners, and Matt Woodley, CEO of the Donovan Group, teamed up under the name ‘The Bonodleys’ to raise funds for the cause – and the franchise community responded.

Some of the companies who have got behind the team are:

• Burger Fuel

• Coresteel Buildings

• Crank’d Media

• Duncan Cotterill

• Ecomist

• Exceed

• Franchise Accountants

• Franchize Consultants

• Franchise New Zealand media

• Guthrie Bowron

• Iridium Partners

• KiwiSpan

• Putti

• Unicloud

• Smith & Smith

• Streetwise Coffee

• The Coffee Club

• V.I.P. Home Services

• Wash Rite

Online

and in-person

seminars to improve franchisee performance

Four seminars being held in May/June are designed to give franchisor teams the tools they need to help franchisees get the most out of their businesses.

The sessions, run by multi-awardwinning Auckland experts Franchize Consultants, are designed to respond to real-life challenges and help answer real-life questions. They are facilitated by two of the company’s most experienced consultants: Michelle Bentham, who has many years of operational experience with McDonald’s and Subway; and Dr Callum Floyd, who has led franchise system development and improvement projects for local and international

franchises across a range of business sectors.

The seminars cover:

• Franchise field support visit training

• Improving franchisee performance

• Managing a franchise system

• Franchisee business planning for field managers

See more at www.franchise.

co.nz/articles/3097

‘The 2021 Franchising New Zealand survey showed that franchises contribute millions of dollars to community causes every year,’ says Nathan. ‘We’re grateful for them digging deep to find almost $30,000 extra to help our fundraising for KidsCan.’

In Brief

• Three well-known names in franchising celebrated milestones recently. Stewart Germann Law Office turned 30 in February 2023 – the franchise specialists have been in the same central Auckland premises since the very beginning. Speedy Signs has celebrated its 25th birthday in New Zealand, marking the long-term success of the popular business-to-business franchise. And Cookie Time celebrated 40 years with a super-sized special.

• The Four Square minisupermarket chain is one of the country’s longest standing brands, having been in

‘After the floods and cyclone earlier this year, Kiwi kids need our support more than ever,’ says Nathan. ‘It’s not too late to contribute – go to https://porkpiecharityrun.org.nz/ page/TheBonodleys.

‘Every little helps!’

business for 99 years, and owner Foodstuffs is keeping the brand up-to-date with a nationwide revamp. The green, red and yellow branding update has started in the North Island with plans to extend to all 226 stores nationwide.

• Two new burger brands are on their way to New Zealand. Wahlburgers, the chain owned by Hollywood’s Mark Wahlberg and his brothers, has opened on Auckland’s prestigious Princes Wharf, with its signature product attracting attention for its $23 price tag. Meanwhile, the Louisiana-styled Popeyes chain is apparently recruiting staff.

Neither chain has announced plans to franchise in New Zealand. Another new entrant is Pizza Inn, which has opened the first of 10 planned stores here in Mt Wellington offering house-made dough and a signature sauce,

• The United States Commercial Service office in New Zealand is arranging a delegation of individual and corporate New Zealand investors seeking opportunities in business format franchising to attend the 2023 International Franchise Expo (IFE) taking place June 1-3 2023 in New York.

https://nz.linkedin.com/company/franchise-nz-marketing-ltd

SUPPORT FOR FRANCHISEES HIT BY DISASTERS

The Anniversary Day floods and Cyclone Gabrielle turned summer from a happy and relaxed time into a period of danger, despair and stress for many people, small business owners included. Franchisees were at least able to turn to their colleagues for support, and at a recent Franchise Association evening a number of franchisors outlined the steps they had taken to help franchisees affected by the weather events, from practical and financial support to co-ordinating help from other franchisees and assisting with recovery efforts and insurance claims. The inability to contact people added to the stress for many, and franchisees were also faced with seeing their customers in distress. The FANZ session demonstrated once again just how deeply good franchisors care about their franchisees, and how much effort they put into supporting them when disasters strike.

One touching story came from The Coffee Club, which had a new franchisee in Napier hit by the floods just 11 days after opening. The new café was closed for 8 days, then had to start all over again. The franchisor flew two staff down to help, and

also encouraged suppliers to donate free product to help the franchisees get back on their feet. The franchisee said, ‘No, there are people worse off than us,’ and made up 150 lunch bags using the donated product to give to the volunteers helping the worst affected.

While immediate action was essential in the aftermath of the weather events, franchisors recognised that some franchisees would require long-term support as they coped with the impact on their business, home and community.

The Franchise Relationships Institute offers a free Franchisee Support Kit to assist franchisors and others wanting to help franchisees and families affected by disasters. The kit contains tips, strategies and practical guidelines for providing both business and psychological support – see more at www. franchise.co.nz/articles/1209

First joint employer prosecution against franchisor

Australia’s first prosecution of a franchisor for wage underpayments by its franchisees has commenced in the Federal Court more than five years after legislation that makes franchisors jointly liable was first passed. In recent years, there have been moves in some heavily-regulated jurisdictions – notably the USA and Australia – to make franchisors jointly responsible for the employment practices of the franchisees, despite the fact that franchisors have no say over the hiring, payment or recordkeeping of their franchisees’ employees.

In this case, Australia’s Fair Work Ombudsman (FWO) has commenced proceedings against Sydney-based coffee brand 85 Degrees for alleged non-compliance by eight of its franchised outlets which underpaid nine workers a total of $32,321.

The FWO alleges that the franchisor should have reasonably known that its franchisees would underpay their workers following a previous action in 2015 resulting in an enforceable undertaking being given by the company to the FWO in 2015, and the franchisor’s knowledge of its franchisees’ financial circumstance, and their franchisees’ limited English capabilities and understanding of workplace laws.

HEIGHT OF SUCCESS

Starting a business from scratch is always a leap into the unknown, even when it’s a franchise. But what if the franchisor is so confident that they’ve done all the hard work for you, setting up the business, getting the right equipment in place and bringing a solid base of customers on board? That’s what Accessman has done in Auckland, and it means that there are three very solid businesses looking for franchisees in West and South Auckland, and the North Shore.

Accessman is the country’s leading hire business specialising in Elevated Working Platforms (EWP) which make it possible for workers in all sorts of industries to operate safely at height. Over eight branches across the country, Accessman has close to 1200 scissor lifts, knuckle booms, cherry-pickers, telescopic boom-lifts, telehandlers and other access technology, all meticulously maintained with many being the latest and safest of their type.

With growing awareness of the risk of workplace accidents and the continual upgrading of safety legislation, business is booming.

Audited evidence of growth

Accessman was founded in Christchurch by Ross Pickersgill when he bought his first scissor lift in response to the Health & Safety in Employment Act 1992 and rented it out when not in use. The company grew steadily until 2009, when Lena Harrington, an experienced construction industry executive, was recruited as finance/marketing manager, becoming general manager four years later. Since then business has quadrupled.

‘What attracted me to Accessman was the increasing focus on worker, workplace and public safety,’ she says. ‘Accessman already had an enviable reputation for integrity, reliability and service, and we have built on that. We jumped Cook Strait to establish the West Auckland branch in 2017, followed by South Auckland in 2019 and North Shore in 2020. Now that they have been through the bedding-in period, we can provide audited evidence of growth in this high-return sector and the time has come to find franchisees.’

Huge pipeline of work

Lena says that while some sectors might be suffering from economic jitters at the moment, that’s not reflected in the huge pipeline of work for Accessman in Auckland and throughout the country. ‘Our business model has a robust foundation, proven over many years, of not putting all our eggs in one basket. We have a wide range of mainly commercial clients which includes large, well-established and highly-reputable

construction companies. Their work includes government-funded projects and public-private partnerships, as well as major private sector projects.

‘Each franchise is a supercharged turn-key opportunity with everything in place including a defined territory, EWP equipment, qualified maintenance and other staff, fully-equipped workshops and longterm yard leases. They are up, running and working well, and ready for franchisees to come in and use their local knowledge and connections to grow their business even further.’ The investment ranges between $1.8 and $3 million and, as asset-based businesses, franchisees can enjoy the advantages of high depreciation levels on equipment.

Skin in the game

Because of the level of investment, Lena says a franchisee can be two or more people, or an individual who has bank support or other investor backing. ‘While EWP experience is not necessary, the franchisee must be a hands-on owner-operator with skin in the game, as well as demonstrable management and interpersonal skills. What we don’t want is an investor planning on employing a manager.

‘The investment in Accessman includes full franchisee business and external safety training, marketing materials, franchise manuals, operating systems, proprietary software and ongoing support. This includes helping establish relationships with existing clients within the franchise territory.

‘Of course, woven into the very fabric of Accessman is our commitment to safety. As an advisor to the Hire Association on Codes of Practice, we employ full time operator trainers, delivering either Silvercard or the internationally-recognised IPAF Operator Training to anyone currently using or wanting to ensure that their operators are “deemed competent”.’

We love coming to work

While Auckland is a prime target, Lena is equally keen to hear from those elsewhere in New Zealand with the resources and commitment to safety to buy an existing branch or establish a greenfield territory.

In 2020 Cam Knight and his wife Anna bought Accessman Blenheim. New Zealand-born Cam previously worked in the UK oil and gas industry, where he became only too aware that most serious oil rig injuries and deaths were falls from heights. Accessman is in a position to make a difference.

‘Accessman is a strong brand backed by robust systems, and there is no cutting corners – something our customers appreciate as much as we do. All our EWP machines are top spec and really well looked after. Our clients are great, and I’ve developed strong friendships with my fellow franchisees. Growth is ahead of projections, enabling us to buy out a competitor. Put it this way – we love coming to work and I can’t see that changing.’

Lena concludes: ‘With so much work available, now is the time to take your career to new heights of financial and personal success. Give me a call and let’s talk.’

Accessman www.accessman.co.nz

Contact Lena Harrington

M 021 361 622

Accessman has established high-performing opportunities in Auckland and elsewhere

Accessman branches can be big business for the right people

Scott GoodwinGoodwin Turner Lawyers

Steve Murray David Foreman

Leah Daws Tereza Murray

Nicola Bow

Tonya Knight

MONEY IN THE BANK

Asale isn’t a sale until the money’s in the bank. It’s a fact that new business owners have been learning for years – and the easier and quicker you can make it for customers to pay you, the better.

Of course, organising accurate and efficient payment systems for its franchisees is all part of a franchisor’s job, but partnering with the right provider can make all the difference. Now, Eftpos NZ is offering franchises a range of special features to bring additional benefits to franchisees throughout the country – and offering attractive rates, too.

Making life easy

Eftpos NZ has been New Zealand’s favourite payment provider for 30 years, and now services over 50,000 businesses around the country from local cafés to multinationals. ‘That means we are well-positioned to support the unique franchise business model, and already have many of the country’s best franchise brands among our customers,’ says Chaitanya Kothapalli (CK), the company’s Senior Business Development Manager.

‘But not everyone is aware of the advantages of partnering with Eftpos NZ throughout your franchise network, and how that can not only make life easier for franchisors and franchisees, but enhance efficiency and deliver better market intelligence, too.’

CK explains. ‘Eftpos NZ doesn’t just supply EFTPOS terminals for fixed or mobile use. We also offer online payments that enable you to create a seamless and secure online payment experience for your customers with our Verifone online payment gateway and checkout solutions. Whether you have a website or not, we can provide a secure payment gateway and tools to help you monitor and manage your transactions.’

Extra features

Eftpos NZ also offers a number of valuable extra services. ‘We were the first company to bring Android payment devices to the market which are intuitive and easy to navigate, just like using a smartphone. Customers will love the engaging user interface, large colour touchscreen and virtual keypad with large buttons,’ says CK. ‘There’s our free merchant portal, Verifone Central, which includes a virtual terminal function for taking orders over the phone, and another valuable feature is Pay-by-Link.

‘With a payment page online, you can send the customer a link by email or message which enables them to pay the correct amount immediately without having to give you their credit card details or your having a dedicated website. Pay-by-Link can also be incorporated into the invoice, encouraging immediate payment. That can suit franchises where sales are made by individual franchisees rather than via the group.’

One call does it all

Eftpos NZ has a lot more to offer franchises, too, says CK. ‘Because we manufacture our own machines, design our own software and have our own secure payment network, we manage the whole process from start

to finish. It means that if a franchisee or franchisor has a problem, then they only need to make one call for support. That can save a lot of time and frustration in a busy outlet.’

Eftpos NZ takes support seriously, says CK. ‘We have an alwaysavailable 24/7 helpdesk based in Wellington to help with any techical queries, and 85 percent of queries are resolved on the first phone call. We have two local logistics centres for dispatch and repairs, and we are the only payment provider with our own network of field service reps.

‘Imagine the benefits that can bring. When a new franchisee comes on board, you can call on us – we’ll handle the logistics, installation and training and, if they have problems later on, we provide ongoing support whenever they need it. That helps your own field support team concentrate on business building and operational issues rather than technical stuff and logistics.’

Better management

As well as making it easier for customers to pay and franchisees to control, there’s another advantage that Eftpos NZ can offer franchises – better information. ‘Good management requires timely and accurate information, and Eftpos NZ can provide this,’ says CK.

‘From Verifone Central, franchisors can see all transactions for all locations on the network, and franchisees can see their own info. Via the dashboard, they can drill down by day, location and even individual terminal, see weekly or quarterly trends and identify possible opportunities and issues. And, of course, once all franchisees are on the Eftpos NZ system, that information becomes even more valuable.’

Increased profitability

CK is keen to talk to franchisors large and small, fixed or mobile, new or established, about working together with Eftpos NZ. ‘No matter how many franchisees you have or what industry you operate in, we can help,’ he says.

‘Our payment network is already the most affordable in New Zealand and we are happy to negotiate group rates for multiple sites and whole networks. If your franchisees are currently using a variety of providers, we can make it really easy for them to switch to us. That way, your whole franchise will benefit from the increased information and simplicity of being with us.

‘Using Eftpos NZ can enhance the efficiency and profitability of franchisees’ businesses while reducing costs. Contact me today to find out more.’

Eftpos NZ helps franchisors build franchisee efficiency and profitability

Franchise

CK (right) says Eftpos NZ can help franchises enhance efficiency and profitability

Funding your franchise business

Daniel Cloete of Westpac discusses issues to look out for when funding a franchise purchase or set-up in the current economic climate

Every part of the economic cycle presents challenges and opportunities, and the current situation is no different. However, every cycle is different and the current high inflation, linked to some unique challenges coming out of Covid, is presenting some additional considerations for those looking at business funding.

When looking to purchase a business or doing projections for setting up a new business, in addition to doing normal due diligence you may also want to consider some of the factors below. These could influence the projections and debt servicing ability of the businesses and, therefore, how much funding might be available/affordable.

Key factors

In general, sales are holding up well, and may even be higher due to inflating prices or demand, but increasing cost pressures are affecting bottom line profitability negatively. If you’re buying an existing business, that means you need to consider the current cost realities and ask the right questions.

Some examples would be:

Rent. Many businesses are locked into CPI-plus rent increases. Given the high inflation currently, that could mean an increase of inflation plus 2-3 percent in rent this year. As this could be difficult to get back through price increases (given all the other cost pressures), the difference may come straight off the bottom line. This can have a significant effect on business profitability, and may even be the reason the business is for sale! Get your professional advisors to check this out when purchasing a business, or take it into account if signing a lease when setting up a new business.

Rising interest rates. The extremely low interest rates over the last few years created a situation where the rate became increasingly irrelevant, while the term over which the loan had to be repaid had a much bigger influence on cashflow and debt servicing ability. That all changed when the Reserve Bank started increasing interest rates – something which is continuing. Remember, though, that rates are still relatively low compared to historical levels, so profitable business models should still be able to afford an appropriate level of debt.

Increasing costs and the resulting drop in profitability is probably one of the biggest issues in obtaining bank finance. These factors include salaries and the minimum wage, rapidly increasing food costs in the hospitality industry, and rent escalations amongst others. Although price increases could partially off-set some of these increases, it may be difficult to pass on all of it without negatively influencing sales.

Own a tech-enabled business, working from home in an ‘essential service’ industry.

Founded in 1999, InXpress has a long history in managing successful businesses. This is combined with the expertise to train and support franchisees in running a sales business. With 460+ franchises globally, the multi-award-winning business continues to grow.

A respected partner to global carriers

InXpress has established strong and lasting relationships with trusted courier partners around the globe and access to highly competitive rates. This leaves you free to concentrate on building sales, working towards your goals, and creating the lifestyle you want.

The InXpress Opportunity

Build your own successful and profitable start-up business with the security of the world’s largest franchisor of global courier services. We’ll provide full training, with ongoing coaching and support.

• Recession-resistant

• Low entry & ongoing costs

• Proven business model

• Full training & coaching

• No inventory, office or vans

• Unlimited passive income

• Work from anywhere!

Daniel Cloete

Sales. Given very low unemployment rates, sales have been holding up well. When looking at financials, you will need to consider if the latest sales numbers look stable or increasing due to rising prices, rather than actual volume growth. In a higher inflation environment, people will have to get used to taking that into account and use real vs. nominal calculations to analyse underlying trends.

Plan ahead

All the above would obviously influence the multiple that you would want to pay for an existing business, as well as any projections for the next financial period. Provided you take this into account when making an offer, there could be some excellent opportunities in the market.

Credit risk appetite. In a lot of cases the banks’ appetite for business lending has not changed much. Unlike the GFC, there is a lot of liquidity in the system, so the money is there to borrow. While Covid, lockdowns and supply chain issues have clearly impacted some industries like hospitality, tourism and retail more than others, many are now bouncing back – although getting enough employees is still a problem.

Disposable income. A dramatic increase in borrowing costs is set to hit many New Zealand households through 2023. Around half of all home loans will come up for refixing during 2023. Many borrowers will be faced with significant increases in debt servicing costs. In some cases, borrowers could see their mortgage rates rising by more than 3-4 percentage points. That will offset much of the boost from the strong labour market and accrued savings, and will certainly influence the disposable income of mortgage holders. The future direction of interest rate movements would dictate when this effect changes, which is dependent on getting inflation under control.

The benefits of franchising –financial imperatives

Whether you are looking to buy an existing business or set up a new one, franchising offers a number of benefits: proven business model, brand reputation, documented systems, training, group buying power, experience, support and benchmarking. Less obvious, perhaps, are the financial advantages which come into play at times like now.

• Buying a franchise means you should have a clear knowledge of the financial input required, including initial costs and working capital.

• Funding may be available for a franchise when it wouldn’t be for an independent business. For well-known and accredited franchise systems, it may also be possible to fund against the projected business income for new set-ups.

• There are recommended specialists for advice such as banking, legal or accounting who will have detailed knowledge and experience of the franchise in question and be able to give valuable advice.

• Because good franchises share information and benchmark performance, you can compare the financial performance and KPI’s like sales, Gross Profit margin, labour costs, rent and Return on Investment with others in the same (or similar) groups. This will enable you and your advisors to develop a much better understanding of the business, lower the risk, and facilitate information that can assist with a business plan and funding application.

See your specialist franchise banker as an ally

Obtaining bank finance might seem to be a big issue, especially for first-time buyers of small businesses in the current climate. In fact, it could essentially be a straightforward process, using the same information you need yourself to assess the business anyway. The better the information you have, the better able you are to make a decision.

Finally, one thing that the potential franchisee should remember is that he or she is the bank’s client – not the franchisor! It is therefore in the bank’s interest that its clients join a stable, profitable franchise system without paying too much for the business. Talk to one of our specialists to find out more.

About the Author

Daniel Cloete is the National Franchising Manager for Westpac. For more information, contact your local Westpac Franchise and Business Banking Specialist on 0800 177 007 or email: franchising@westpac.co.nz The information contained in this article is intended as a guide only and is not intended as an exhaustive list of matters to be considered. Persons entering into franchise agreements should seek their own professional legal, accounting and other advice.

Finding the right buyer for your business

If you’re looking to buy or sell a franchise, you’ll soon come across Link Business Brokers. Founded in Auckland in 1996, Link has expanded throughout NZ, Australia, Philippines and the United States, developing enviable expertise. We talked to Nick Stevens and Dawn Engelbrecht to find out what makes Link different.

‘The first thing you need to know is that we are a franchise ourselves, which means we really understand what franchisors want and need,’ says Nick, director of Link and himself a business broker. ‘Since I joined the company over 20 years ago, I’ve worked with franchisors to help them buy and sell whole systems, as well as individual franchise sales and re-sales.’

Dawn also has real experience, having built the hugely successful sKids before- and after-school childcare brand to over 160 franchised locations around New Zealand before selling the business in 2019 and later joining Link as a broker. ‘You could say I’ve walked the walk that so many franchisors go through – I know what is involved both in recruiting individual franchisees and finding a suitable buyer to look after your franchisees when the time comes for you to sell.’

Selling a franchise system

Over the past three years, franchisors have been so busy helping their franchisees through the disruptions of Covid that many have put their own plans on hold. Now, they are ready to move on but want to ensure a smooth transition.

‘We understand that,’ says Dawn. ‘Every franchisor is concerned about their franchisees, their employees and the legacy they leave, and wants to ensure that whoever takes it on will grow the business and look after their people. At the same time, they want to maximise the return they get for all the effort they put in.’

Nick says that confidentiality is hugely important. ‘You don’t want to unsettle people with rumours and talk about selling, so 95 percent of the businesses we sell don’t want to sell openly.’

Instead, Link takes sellers through a careful process of analysis and preparation that enables them to find suitable buyers on a confidential basis. ‘Whether you are a franchisor selling a whole system, or a franchisee selling an individual outlet, we first do an appraisal on the business and where it sits in the market to help ensure a realistic valuation,’ explains Dawn. ‘Then we work with them to get all the pieces in place: legal and employment documentation, leases, agreements, contracts – all the things they need to have right for a buyer’s due diligence.

‘Without the support of a business broker it can be a huge and stressful time, which is why we are there every step of the way throughout the whole process – which could take 3-12 months. The more we can help them prepare in advance, the better.’

Finding the right buyer

Finding the right buyer is a major part of what Link does, of course.

‘While many businesses change hands for under $1 million, our dedicated Enterprise division sells businesses such as established franchise systems up to $50 million or more,’ Nick says. ‘Buyers come from all sorts of backgrounds – corporates in related sectors, franchise groups looking to expand, experienced managers ready to run a business by themselves or together with colleagues, or returning ex-pats or immigrants.

‘Many of those groups may also be interested in master franchises, multi-unit opportunities or individual outlets, too. And then there are the traditional family business buyers – mums, dads, kids and siblings wanting to work together. It’s a question of reaching them.

‘In addition to advertising which could involve social, print and digital, Link has a database of over 250,000 buyers with criteria covering investment level, industry and location. That gives us a huge ability to reach people quickly and discreetly.’

Making finance possible

One of the biggest challenges is finance. ‘Buying a business is very different from buying a house, and getting the funding can be much more complicated,’ explains Nick.

‘That’s why we partner with Spring Loans, who specialise in business finance. By talking to potential buyers about their business plan, they understand how to structure a proposition properly to get the best terms. They will then go to three or four banks to help the buyers get finance and make the deal happen.

‘We have many examples where buyers were turned down for finance before asking Spring Loans for help, then being able to purchase their dream business after all. And, best of all, the service doesn’t cost the buyer or seller a thing.’

How can we help you?

Nick concludes, ‘For anyone looking to sell a business, master franchise or system, please contact us. Fees will vary according to the type of business, but there’s one thing that’s certain – we don’t get paid until we’ve done the deal.’

And former franchisor Dawn sums up. ‘After being a franchisor myself for so many years, there’s a reason I chose to join Link. The people are an absolute pleasure to work with, and the admin and marketing are first class. If you’re selling a business, call us.’

Advertiser Info

Link Business Brokers www.linkbusiness.co.nz

Contact Dawn Engelbrecht

M 027 291 9904

dawn.engelbrecht@ linkbusiness.co.nz

Whether franchisor or franchisee, when it’s time to sell the business you’ve cherished, talk to Link

Dawn Engelbrecht with another happy business buyer

PULLING NO PUNCHES

You don’t get to build a multi-award winning international business by pulling your punches, and in Be Your Own Boss Bill McGowan, the founder of Fastway Couriers, delivers some hard-hitting advice for anyone thinking of starting their own business or buying a franchise.

The book is designed as a guide to help people organise their thoughts and to decide whether being their own boss is really for them. Along the way, Bill shares a bit of family history, explains how he got into business, and tells a lot of memorable tales about the effort that went into creating Fastway – all in Bill’s typically blunt fashion. The tale of how he got revenge on a reluctant bank manager made us genuinely laugh out loud.

Bill also translates his experiences of researching opportunities, overcoming obstacles and then teaching other people how to operate their own businesses into checklists, questionnaires and advice (see the extract on page 28). He recognises that starting a new business is complex at the best of times, and his aim has been to make this process as manageable as possible for the intending entrepreneur. The book covers:

• Going into business on your own

• Goal-setting

• Business planning

• What does a banker really want to see?

• Marketing

• Franchising

• Business structure

• Your personal wheel of fortune.

As Andrew Terry, Professor of Business Regulation at the University of Sydney Business School, said, ‘Every person who aspires to be their own boss will benefit greatly from the business wisdom that Bill shares – wisdom which is practical and accessible and which has been forged from his own hands-on experience in identifying a business opportunity and developing, managing and growing it.’

Be Your Own Boss is published by Austin Macauley Publishers and is available from www.amazon.co.nz.

A new book by a franchise veteran provides good advice for anyone wanting to be their own boss

CELEBRATING SLOW FOOD

Home-grown Kiwi franchise Katsubi is celebrating 20 years of success for the famous Red Bowl

How do you combine traditional slow-cooked flavours with the fast service required in a modern food business? That’s the secret that Katsubi discovered 20 years ago – and now the brand is celebrating its birthday with an Instagram promotion that sees customers win grand prizes like Air Pods and i-Pads in a monthly draw. It’s part of the appeal that has seen the brand win thousands of loyal fans for franchisees around New Zealand – but it’s the food itself that keeps people coming back.

‘People love the fresh taste of our Red Bowls, which combine freshlycooked meat and healthy vegetables flavoured with our unique Katsubi Sauce,’ explains Zoe Park of Katsubi HQ. ‘This enables people to select their own mix of salads and sauces, then add hot meats or plant-based options to create the perfect combination for them. Our original recipe Red Bowl flavours can’t be copied – it is slow food designed to be served fast!’

Unique flavours

Zoe runs through the menu. ‘As well as the Red Bowl, we’re famous for our Chicken DAK, crunchy fried 100 percent New Zealand chicken marinated in a special sauce which gives it a delicious tangy, spicy flavour. The recipe is a closely-guarded secret – the chicken is prepared in our factories in Auckland and Christchurch and then cooked on the spot in each store. And we also have Katsubi’s own unique udon and ramen noodle options, as well as a variety of tasty snacks to suit any taste, any time.

‘The result is a very successful, very well-established and very profitable business model,’ Zoe says. ‘We have franchisees who have been with us for over 10 years, and our performance during all the disruptions of Covid only showed what a stable, secure business this is.

‘Katsubi is a 100 percent Kiwi-owned family business and we are very proud of our track record. Nationally, the company is a strong performer with significant brand awareness even compared to some of the global franchises operating here.’

Ready to learn?

With 21 locations already established, Katsubi is looking for franchisees for new mall and streetside locations all over the country. ‘The opportunity is open to anyone interested in the hospitality industry with a passion for business and a desire to succeed,’ says Zoe. ‘You don’t need a food background or a specific skill set as long as you have lots of energy and are willing to learn – this is a very hands-on business.’

Most stores are open 9am-9pm or mall hours, depending on location.

Franchisees learn to do the cooking themselves then teach others as the business grows. After 20 years, Katsubi has welltried systems to follow in everything from food

preparation and ordering to HR, scheduling and business management. Initial training takes place in Auckland and then there are regular visits and contact with each franchisee.

‘New franchisees get the benefit of highly-experienced specialists in operations, marketing and planning as their businesses grow,’ says Zoe. ‘This ensures that you are comfortable with every part of the business and able to make the most of the opportunities the franchise offers to achieve high levels of profitability and sustainable returns.’

For new franchisees, total investment levels vary according to location and size. In general, the range is between $350,000 and $500,000.

Katsubi’s track record as one of the most successful local franchised eateries in the country means that banks are supportive when it comes to finding finance for the right people, says Zoe. ‘They have seen how successful the business has been over the last 20 years, and how much focus we put on sustainability and profitability,’ she explains.

Taste it for yourself

Katsubi is keen to find franchisees for locations in key cities and towns around New Zealand.

‘This is a proven business model which can deliver excellent returns for franchisees,’ says Zoe. ‘Our “slow food served fast” approach offers fresh, healthy food for everyone and has a wide appeal wherever we go.

‘Visit a store and taste Katsubi for yourself, then contact me – we’re keen to hear from people who share our passion.’

KATSUBI STORES

Auckland

Albany

Browns Bay

DressSmart, Onehunga

Glenfield

Greenlane

Manukau

NorthWest

Orewa

Ormiston

Rosedale

Silverdale

St Lukes

Sylvia Park

Takapuna

WestCity

Hamilton

Dinsdale

Bayfair

Christchurch

Airport (Spitfire)

Northlands

Riccarton

Places of Interest

Auckland City

Birkenhead

Christchurch

Hornby

Napier Nelson

Newmarket

Tauranga

Taupō

Queenstown

Whangarei

Contact

Katsubi’s Instagram promotion is winning friends and rewarding fans

2023: Katsubi Silverdale

Do you feel like you were destined for greater things?

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When I first entered the franchise world back in 1983, I was shocked at how many potential franchisees had no idea about running their own businesses. It was something I had been familiar with since I was 13, when I had started a lawnmowing business while at Orewa College, employing up to 12 other boys and servicing around 100 clients. As a franchisor, I discovered, I had to develop training programmes and manuals to help people understand how to operate their own business. But I also had to make sure that the franchisees I appointed were people who had the potential not just to operate their own business but to make the most of the opportunities it provided.

When I retired, I decided to put the knowledge I had learned over the years into a book. The following chapter from Be Your Own Boss describes a process I used over the years to help potential franchisees work out whether self-employment of any form really was for them. This is a self-completion questionnaire which I hope you will find helpful. Remember, this is not a test. There is no pass or failure mark and only you will know the results.

Your personal wheel of fortune

Each of the 12 attributes listed below is represented by a Spoke in a wheel (see diagram). Rate your score on a scale of 0 to 10 and make a cross X on each spoke of the wheel where you think you rate yourself. Be truly honest with yourself in your marking to achieve the best result possible. The smallest wheel represents 0 (nil) and the largest (outer) wheel represents 10. Start by answering question A and work your way to question N

Finally, join up your marks to form a continuous line. This then becomes your personal wheel of potential business success. The larger the wheel, the better it runs. The less bumps or dips in the wheel, the easier going into business will be.

If your wheel looks a bit bumpy, work on improving the areas of weakness. Remember, you don’t have to re-invent the wheel—just put new spokes in it!

In this extract from his new book, Be Your Own Boss, Bill McGowan helps you work out how suited you are to running your own business

Spoke A: Health

What state of health are you in?

Excellent – 8-10

Pretty good – 5-7

Average to poor – 2-4

Not too good – 0-1

Spoke B: Family Support

Do you have the support of your family?

Behind me 100% – 8-10

Most of them behind me – 5-7

Not very supportive – 2-4

Totally against it – 0-1

Spoke C: Self Esteem

How do you rate your chances of success in business, based on your knowledge and your own ability?

Extremely confident – 8-10

Reasonably confident – 5-7

Not sure – 2-4

Very unsure – 0-1

Spoke D: Capacity for hard work

How hard are you prepared to work in your business?

As hard as it requires to succeed – 8-10

Harder than I work now – 5-7

Hoping to do less than present job – 2-4

Looking for an easier life – 0-1

Results

If your wheel forms the entire outer perimeter (8–10). a new business start-up may be for you. All you need is the right concept or idea. You need to be very strong in the attributes shown on the right-hand side of the wheel A to G if you are to succeed in business. If the right-hand side of the wheel is even above the 7 line, and if the left-hand side of the wheel is bumpy, franchising may be suited to you.

The attributes on the left side H to N are attributes that a good franchisor can assist you with through training and ongoing support. The left-hand side of the wheel should be at least around the middle mark.

If your entire wheel is under 5 then you definitely shouldn’t consider going into business on your own account at this stage. Going into a business on your own would be an extremely large risk.

Editor’s note: Our 2022 survey showed that 39 percent of prospective franchisees planned to go into business with a spouse or partner, while a further 21 percent intended to operate with a family member, business partner or friend. If that’s your intention, it would be worth doing this exercise with your partner. Between you, you might have the skills you need to smooth out the wheel – and it could also help you decide who does what in your new venture.

Spoke E: Enthusiasm

How enthusiastic are you about starting out in your own business?

Extremely enthusiastic – 8-10

Very enthusiastic – 5-7

Mildly enthusiastic – 2-4

Not looking forward to it – 0-1

Spoke F: Wealth

What level of the cash input required do you have to put into your business?

100% – 8-10

50% – 5-7

25% – 2-4

Under 25% – 0-1

Spoke G: Sales ability

What is your selling ability?

Extensive sales experience – 8-10

Some experience – 5-7

Very little experience – 2-4

No previous experience – 0-1

Spoke H: Business Skills

What previous management experience have you had?

Extensive experience at high level – 8-10

Some experience – 5-7

Very little experience – 2-4

No previous experience – 0-1

Spoke I: Industry experience

What is your experience in the industry chosen?

Extensive experience – 8-10

Some experience – 5-7

Very little experience – 2-4

No experience at all – 0-1

Summing up

Elsewhere in the book, you’ll find a number of other tools to help in your personal business evaluation programme. These include:

• Personal strengths and weaknesses form

• Personal questionnaire

• Business suitability form

Will going into business enable you to achieve your goals? With the aid of these, you can carefully assess your suitability for being your own boss.

Going into business will leave you with a lot of decisions to make. Know yourself and your capabilities first, and then assess your business future.

Spoke J: Preparation

How would you describe your preparedness for the task ahead?

Extremely well prepared – 8-10

Quite well prepared – 5-7

Not very well prepared – 2-4

No preparation at all – 0-1

Spoke K: Time Planning

How well do you plan your time?

Extensive time planner – 8-10

Have the skills but don’t use them all the time – 5-7

Occasionally time plan – 2-4

Not a time planner at all – 0-1

Spoke L: Accounting

Business planning skills

Extensive experience at high level – 8-10

Some experience – 5-7

Very little experience – 2-4

No previous experience – 0-1

Spoke M: Marketing

What marketing experience do you have?

Extensive experience at high level – 8-10

Some experience – 5-7

Very little experience – 2-4

No previous experience – 0-1

Spoke N: People management

Managing and controlling staff

Extensive experience at high level – 8-10

Some experience – 5-7

Very little experience – 2-4

No previous experience – 0-1

About the Author

New Zealander Bill McGowan founded the Fastway Couriers franchise, which became a household name in Australia and New Zealand and won many awards. He served as chairman of the Franchise Council of Australia and the World Franchise Council, and is a Life Member of FANZ. Be Your Own Boss is his first book and is available from www.amazon.co.nz. See review on page 32.

KNOW THE NUMBERS THAT COUNT

Philip Morrison offers advice on managing cash flow and paying tax

Over the years, the award-winning team at Franchise Accountants has helped thousands of people from hundreds of different franchise systems to buy, manage and eventually sell their businesses. As business owners, they each have different strengths: some are great at sales, others at building teams, others at seizing opportunities or containing costs. But one thing all business owners need is a basic understanding of financial management.

There’s nothing worse than getting to the end of the financial year, looking at the figures presented by your accountant (and the tax you have to pay) and thinking, ‘There’s no money in my bank account – I can’t possibly have made all that profit! Where did all the money go?’

The assumption is that if the profit made on paper is not reflected in the bank balance, it can’t be true. But profit and cash flow are two different things. Here are some practical insights into key financial matters that affect the cash flows of a business.

Cash v Profit

First, it’s important to understand what profit and cash flow actually mean.

taxes and pay suppliers. His business was making a profit, so where had the cash gone? On investigation, he’d taken cash out of the business to buy a new car earlier in the year – cash the business needed. Instead, he had to take out a loan for the car so that the cash flow worked.

Remember, just because the cash is there doesn’t mean you can spend it. It may be already committed to pay your taxes or service your loans.

Owner’s Drawings

It’s common practice for business owners to draw money from the business to live on. This is called drawings. The tax on these drawings is paid at specified times throughout the year and the owner is what is called a provisional tax payer.

When taking drawings, business owners must allow for the need of the business to pay its taxes, fund the working capital and service its debts. The most common source of cash flow pressure is when all the cash in a business is sucked out without properly budgeting for these.

Servicing Debt

Operating a business often requires taking up loans to fund capital expenditure on equipment, vehicles or the franchise itself. Setting the repayment terms to fit the cash flow of the business is critical. Trying to repay loans too fast will drain off much-needed cash; repaying them too slowly will see the assets they funded wear out and need to be replaced before you have finished paying for them.

Consulting a franchise-specialist accountant before you set up your business is hugely important to your chances of success. On an ongoing basis, reports such as the cash summary report or the cash flow reports that your online accounting software produces are excellent tools to help you diagnose where the cash in the business is going.

Where does the cash go in a business?

Once you are clear on the difference, you need to look at where your cash is actually going to. Generally, the cash flow a business generates is used to fund four areas of a business:

• Working Capital

• Capital Expenditure

• Owner’s Drawings

• Servicing Debt

Working Capital

Working capital is the cash you need to cover the timing differences between when you pay for the product or services you are reselling, along with the wages used to deliver them, and when you get paid for those products or services. You also need cash to pay for overheads such as rent, insurance, etc.

So while you might make a profit by selling something for more than it cost you, it takes time before that profit materialises into cash in your bank account. The longer it takes, the more working capital you need to cover the gap. This is why a profitable business may be cash flow poor. Read more about working capital at www.franchise.co.nz/article/1872.

Capital Expenditure

The cash the business generates may also need to be used towards capital expenditure, such as buying assets. One business owner came to us in distress at having to put money back into the business to fund

Paying taxes

Death and taxes are things none of us can avoid, so knowing your tax obligations is essential for all franchisees if you want to operate sustainable businesses.

It might sound hard to believe, but paying tax is a good thing – it means you are earning a profit. However, you don’t want to pay more than your fair share, so this is where you can benefit from an accountant’s expertise to minimise your tax spend within the boundaries of the tax laws. We recently prepared a set of accounts for someone who previously did their own tax returns. While ensuring they were compliant with tax requirements, we found more savings than we charged in fees. Good advice pays, not costs!

Worth investing

Operating a long-term sustainable business requires sustainable cash flows to fund it. We recommend that you invest in having budgeting and cash flow reports prepared right from the start, with an explanation of how to read them and update them as reality unfolds.

It’s a worthwhile investment that will help you with your decision-making in operating your business.

Fitness, Health & Beauty

A guide to one of the fastest-growing areas in franchising

An increasing awareness of personal health and the ageing of the baby boomer generation means the number of opportunities in fitness, health and beauty has been steadily increasing in recent years. Internationally, it’s one of the major growth areas in franchising and the same is happening in New Zealand.

On the fitness side, there are a number of gym and personal training brands available, as well as studios offering EMS, pole and other exercise regimes. The beauty industry offers everything from hair salons and nail salons to microblading and appearance medicine.

There are also some health-related areas you might not have thought of, like transport franchises which offer a personal service catering for older or less able clients.

Rewarding effort

When beauty franchises scooped the top two titles at the 2022 Westpac New Zealand Franchise Awards, it demonstrated the real value of the franchise model in this sector. Both Rodney Wayne and Caci have a large number of franchisees who had no experience in the beauty industry although they had a passion for it. Franchising enabled them to combine their personal effort with a thoroughly well-developed and effective brand and business system to create highly successful businesses.

This is an area where appearance counts. If you have difficulty with your personal image, even superb people and management skills may not be enough to help you succeed in a slimming or fitness centre franchise. Equally, if you are in the beauty business, you’ll need to put your makeup on every time you go out. But if you aren’t the type of person who is passionate about this sort of lifestyle anyway, you probably shouldn’t be considering a business in the sector – no matter how big the expected growth over the next 20 years.

What to look for

When you’re looking for a business, it’s important to do more than ask ‘How much does it cost?’ and ‘What experience do I need?’ Do your research – we recommend putting in more than an hour of research for every $1000 that you plan to invest.

While there are many good fitness, health & beauty franchise opportunities for sale, they are all different. Some require hands-on involvement and qualifications; others will employ trained staff and require you to have managerial ability. Each franchise will have its own culture, its own operating hours and its own rates of return.

Apart from talking to the franchisor and asking them lots of questions, it’s also a good idea to talk to franchisees who are already running similar businesses to get all the information you need before you open your own.

And remember, before making your decision, you should consult a lawyer specialising in franchises, and a franchise-specialist accountant. Get the experts to help you make the right decision.

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Opportunity: Home Services

Long-term security

After 20 years as a V.I.P. franchisee, these happy people want more!

How long has Mike Vickers been with V.I.P. Home Services? ‘Let’s put it this way – when I first bought my franchise, I had two children under five. Today, they are in their twenties!’

Mike started with V.I.P. in 2003, and has just renewed his franchise for another ten years. ‘I’m not sure I expected to be here all these years later, but when you’re on to a good thing, why would you stop?’ he laughs.

‘Buying my V.I.P. business was a great decision which has served me and my family well.’

V.I.P. Home Services offers two different types of franchise: outdoor (lawnmowing, gardening and outside jobs) or indoor (all types of cleaning). The company is looking for new franchisees for both services in many parts of the country.

Never a shortage of customers

Mike first talked to Franchise New Zealand back in 2006 (see photo), when he told us that V.I.P. had been recommended to him by a relative who used to be a franchisee. ‘They spoke very highly of the people, the life and the money you could make. I’d always enjoyed being outdoors, so I decided to go for it.’

Mike and his wife Janette used the flexibility of the V.I.P. system to start small in South Auckland, and grew their business from $600 turnover per week to over $2,500. ‘The franchise allows you to get into business without investing huge capital, and even guarantees your income for a limited period. That takes the worry out of it, and it’s easy to build it from there. V.I.P. feeds you leads and enquiries on a regular basis, and of course if you do a good job, then referrals come thick and fast, too. In 20 years, there’s never been a shortage of customers.’

Never? Over two decades, Mike has seen as many pandemics, disasters, cyclones, floods, inflation, recessions and property booms and busts as the rest of us, but he says his business has steadily ridden out the storms and thrived. ‘People move away and new people come in, but grass and gardens always grow so business has remained remarkably steady.’

20 years of service

One customer who has been with Mike and Janette right from the start is Miu Hauraki. ‘They aren’t just my lawnmowing people, they have become trusted and valued in the community. They keep my property looking so lovely, I have recommended them to lots of people to look after their lawns and gardens too.’

Mike says modestly that while he and Janette are meticulous about their work, a lot of the credit for their long-term success must go to V.I.P. ‘The business is quite easy to run – just follow the system and it works!’

And Mike has passed that wisdom on to lots of his fellow franchisees, having also been an Area Manager and Trainer for V.I.P. for the last 18 years. ‘I’ve been very grateful for that opportunity – training new franchisees has kept me following the systems and learning the latest techniques, too.’

Achieve what you want

‘Helping people achieve what they want from their businesses has always been important to us, and Mike has been a big part of that,’ says Estelle Logan who, with her husband John, is the company’s national franchisor for New Zealand. ‘He is very supportive to new franchisees as they are learning the business, and happily shares his vast knowledge and experience at our regular franchise meetings. These meetings mean

20 years

our franchisees are always kept up-to-date with everything from new ideas to new legislation.’

Mike values the meetings, too. ‘I don’t think I’ve missed more than two or three meetings ever – you learn so much from them. Catching up with other franchisees is always good, and if they have questions there is always someone who can help them out. It’s always fun keeping up with the equipment, too: for example, I’ve got one guy who is raving about a new battery blower and I’m thinking mine needs replacing, so maybe I’ll give battery power a try!

‘One of the biggest changes I made was to my hedge trimming, after finding a harness system with a spring-loaded tension arm which takes all the weight of the trimmer – all you have to do is guide it. So doing a hedge now is a breeze not a struggle, and after 20 years it’s nice to make some jobs easier!’

Celebrate success

‘Just as we love seeing our new franchisees succeed as they start out in business, it’s wonderful to celebrate the way Mike and Janette have got the very best out of V.I.P. – it’s been such a good business for them over the last 20 years,’ says Estelle.

‘We are so proud of them. Their customers have told us, “We just love the work Mike and Janette do, and we hope they continue for many years to come.” Now they have renewed and those customers’ wishes have been granted.

‘Mike and Janette have shown that, whatever the economy or the weather is doing, a V.I.P. franchise is a solid long-term investment which can give you a great lifestyle and above-average income. Give us a call to learn more.’

(above) Saying it with flowers all round. Mike and Janette Vickers with one of their first customers, Miu Hauraki, who still relies upon V.I.P. to this day.

(right) Mike as he first appeared in Franchise New Zealand back in 2006, when he had been with V.I.P for just three years. See you again in 2033, Mike!

CAN I FRANCHISE MY

Franchising is a powerful way of expanding a business, but it is not for all businesses. Furthermore, there is not just one form of franchising – there are countless variations in structure that need to come together to make up a franchise system.

It’s no surprise, then, anyone considering franchising needs to work through the options. As Dr Callum Floyd of Franchize Consultants points out, just like building a house, conducting successful surgery, or winning a race, there are logical planning steps required to create a successful franchise model.

What do you need to consider?

Franchising needs to be considered and evaluated in a highly methodical manner, and using specialists. This is for many reasons, not least because:

• Numerous areas and options need to be addressed and in a coordinated fashion;

• Small differences in key areas can make or break potential franchisee and franchisor returns (and therefore future business value);

• Many often prominent businesses that appear franchisable are not;

• Not every company culture and ownership style is suited to managing the franchisor/franchisee relationship;

• A structured franchising assessment is always more considerably involved than the business owners imagine.

All this needs to happen long before marketing the franchise or signing up the first franchisee. If projected returns after realistic costs are not sufficient for all parties to earn a reasonable return, the franchise is not feasible. The time to find this out is before the franchisor is committed (and has spent a lot of money) and franchisees have invested in the business with no hope of success.

Sadly, some franchisors/licensors skip this planning phase, and some advisors are happy to go along with it – thereby increasing the chance that the expectations of both franchisor and the poor franchisees will not be met.

How will it help?

A proper franchising feasibility assessment will not just determine whether a business has franchise potential, but will also enable you to make many important decisions needed going forward: franchise structure; support requirements; fee levels, funding and, not least, training the business owner in how to be a successful franchisor.

For companies considering franchising, a dedicated and comprehensive planning stage, led by a competent consultant specialising in franchising, is needed. ‘At Franchize Consultants we understand the impact of not using a specialist franchise consultant, and not addressing the issues in the right order,’ says Callum.

‘We’ve analysed the background and performance of a lot of franchise companies over the last 34 years, and a lot of would-be franchisors too. We’ve helped a lot of successful franchises start up, and a lot of established franchises restructure to suit changing markets. The key to it all is proper, thorough preparation.

‘If you think that franchising may be appropriate for your business, let us help you investigate the many aspects of structure and management that are needed to make franchising successful. Learn from the mistakes of others and “Do it once, do it right”.’

Opportunity: Food & Beverage

The sweet smell of success

After going through the grinder, it all paid off for The Coffee Club franchisees

New café owners Jas Kaur and Mani Singh have a favourite saying: ‘When the going gets tough, the tough get going!’ It’s an attitude that has served them well since they bought The Coffee Club in Wyndham Street, Central Auckland, in August 2021 – just 16 months later they set an all-time sales record for the group.

‘Our journey has been about positivity, focus, belief and dedication, but we haven’t done it alone – we’ve had amazing support from a superb franchise, and it’s all paid off,’ says Jas. Jas and Mani must have had one of the rockiest starts ever in their own business. ‘We took over The Coffee Club on Wyndham Street just as the city went back into lockdown for months.

Central Auckland was like a ghost town, but we kept going, the locals supported us, and The Coffee Club maintained their faith in us and kept our spirits up. You really can’t do any planning in those conditions – you just have to keep going day by day.’

Mani adds, ‘You sometimes hear rumours that franchises don’t really care about the individuals – The Coffee Club really care and they want all their franchisees to succeed and grow. Frankly, they are amazing!’

Guided into our own business

Both Jas and husband Mani have backgrounds in hospitality. ‘We worked our way up through the industry from washing-up in kitchens to becoming baristas, running front of house, and management roles,’ Jas explains. ‘We are passionate about the industry and knew we wanted our own café, so we saved hard. When we began to research franchises, The Coffee Club stood out for us: it’s highly popular, well-established and we liked the high standards, superb systems and excellent documentation.

‘We knew it was just what we needed to guide us into our own business, and when Wyndham Street came on the market, we instinctively felt we could make a go of it if we had the opportunity.

‘We have 20 years’ combined experience in hospo, so we were quite used to doing things our own way but a franchise like The Coffee Club has achieved multiple success because it has proven processes in place. We did have to adapt to that, and as we learned we proved even more the strength of having good systems and following them.’ That’s not to say Jas and Mani haven’t brought their own ideas to the business.

‘The franchise was very supportive of us and helped us identify positive changes. Even now, we are still learning and improving day-by-day and we intend to carry on doing that.’

Just to add to the challenge, Jas and Mani have a daughter who is now nearly two. ‘For my wife it was even more difficult as she had to manage a business and a little girl,’ says Mani with admiration. ‘I think Jas is amazing – she manages the kitchen, doubles as a barista, keeps the customers happy and is also a great mother – not to mention my wife!’

Maximising profitability

Originally founded in Australia, The Coffee Club has over 350 stores internationally with 65 in New Zealand. Here alone, it has won 15 Westpac New Zealand Franchise Awards, including winning the Supreme

Franchise System title twice, and Supreme Franchisee of the Year no less than three times – a unique record.

‘The foundations of our success are good food, great service and excellent coffee,’ says co-director Brad Jacobs. ‘These attract a wide range of customers throughout all parts of the day, and our highlydeveloped systems and marketing are geared to maximise profitability for our franchisees.

‘In the end, though, the success of each individual business comes down to the franchisees in the cafés. Jas and Mani should be proud of themselves for what they have achieved through very difficult times. They kept going, they never lost faith, they listened to advice and came up with some very positive ideas that have benefitted everyone. We are very proud of them, and delighted to see them achieving such great results now.’

Choose great people – support them well

‘Our goal is to choose great people as franchisees and then train and support them to build the businesses they want,’ Brad continues. ‘If you like making people happy and leading a team, and have the kind of determination and commitment Jas and Mani have demonstrated, you can build a great business with The Coffee Club – even if you don’t have their experience.

‘As you can see from our awards and our franchisees’ results, we have a winning system. Investment levels range from $300,000 to $450,000, with potential rewards to match. Get in touch to find out more.’

As Jas says, ‘It wasn’t easy, and we had some difficult times but The Coffee Club was always there for us and we decided we would not leave. We committed to work every day, and we focused on our goals. Today, just like the aroma of wonderful coffee, we can smell our success.’

Advertiser Info

The Coffee Club

www.thecoffeeclub.co.nz

Contact Brad Jacobs

P 0-9-304 0008

M 0275 263 333

b.jacobs@thecoffeeclub.co.nz

After a rocky start, Mani Singh and Jas Kaur are setting all-time sales records

Effective local marketing made easy for franchisees

One of the biggest challenges in franchising is that, while marketing teams can put together great national campaigns, you are very much in the hands of your franchisees when it comes to running local promotions.

That’s even more true in these days of local social media and community pages. They’re a great way of making the tills ring, but franchisees often lack the time, expertise or proper brand material to do a really good job of reaching their best prospective customers – the people who live and work locally.

As Andrew Mitchell, CEO of Storyteq (formerly Brand Machine) says, ‘The combination of big brand and local ownership that makes franchising so effective when it comes to customer service can create real difficulties when it comes to promotion. But social media automation and local marketing portals can make it easy.

‘Take video, for example. Master templates can be connected to a data source to create localised media in batches so you can create a localised video for a hundred franchisees at the push of a button. That makes it easy for franchise marketing teams to create, distribute and even post customised content to a franchisee’s local media without having to wait for the franchisee to do it themselves.’

Case study: Anytime Fitness

When Vanessa Parker joined Anytime Fitness New Zealand as marketing manager in 2019, she met the same challenges common to many franchises: a small, busy head office, with increasing demands from franchisees for marketing support and plenty of local ‘DIY’ marketing.

To give Anytime Fitness the brand health kick it needed, Vanessa decided to set up a Storyteq Brand Portal for her franchisees. Andrew asked her to share the process and results with us.

Vanessa, to introduce us to Anytime Fitness, can you tell us what are the key pillars of the brand?

We have over 5,000 franchised clubs in 50 countries, and each one is open 24 hours a day, 365 days of the year. In 2021, we launched a new slogan that highlights our core values:

Real people. Real success. It reflects our commitment to assisting the individual fitness journeys our members are on in a down-to-earth, nonintimidating environment. In New Zealand, we have 59 clubs.

How well was this brand position being expressed across the club network when you joined?

Very inconsistently. We were all over the place with clubs interpreting various brand elements, such as images or videos, in different ways. We couldn’t blame the clubs. They are not marketers or designers, and because our head office team didn’t have the design resource or budget to meet all their bespoke marketing support requests, clubs were just doing the best they could.

What attracted you to a Storyteq Brand Portal as the right solution for Anytime Fitness?

We needed a self-service solution that would allow our many local teams to create and localise their own on-brand content, but in a way that meant our design standards and quality of output wouldn’t be diminished. I could see right away the Storyteq template software was super-flexible and would allow clubs to adapt content as they needed. But the kicker was how easy and intuitive it was to use, which I knew would be key to it being adopted by clubs. I was also amazed to see video and digital banner templating was possible.

What are the key features and content you have included in your portal?

We wanted to launch the portal with a lot of content and templates. We included social tiles, event collateral, in-club posters and flyers, staff profiles, time-table templates, monthly promotional material and more; all ready to localise and personalise at the click of a button.

The playbooks for specific events and promotions have been really popular and make it easy for clubs to

Andrew Mitchell, CEO of Storyteq:

‘The majority of franchise brands are under-utilising digital marketing in a local context’

The inside story on how one of the world’s leading franchises ensures its local area marketing stays effective and on-brand

marketing franchisees

access what they need. The ability to build customised landing pages has been very helpful for presenting brand guidelines, playbooks and instructional videos. We have also added the ability to order printing via the system.

One of the best things we’ve done

A year in, how would you rate the success of the platform so far?

Like most franchises, the investment in technology comes from a centralised marketing fund that clubs contribute to, so it is imperative that we can show strong value from everything we do. With the high volumes of asset downloads and template adaptations going through each month, implementing our Brand Portal has been one of the best things we’ve done. It has now become integral to how our business runs, and the franchisees love it.

How easy, or how hard, was the implementation process?

The biggest task was creating the master templates and first batches of content. The Storyteq team made everything easy, and we went from the first demo through to going live in just over three months. Our launch date coincided with a rebranding release, so the date couldn’t be moved. However, the project management and commitment from the Storyteq team was so superb that I was always confident we would be ready.

What would you say are the keys to success for any marketer implementing a Storyteq Brand Portal?

Understanding exactly what marketing material local teams need before starting is key. You won’t know this without talking to them and understanding what content they utilise now, and what they would like to use but don’t because it is too difficult, costly or time-consuming to create. The other key factor is that the software must be easy and intuitive to use, or the portal will fail.

What is the next marketing tech initiative for Anytime Fitness?

We are keen to add video templates to the portal – as we all know, video is super-important these days for the digital channels. We also plan on implementing Storyteq’s Brand Amplifier local social media

automation tools. The ability to cascade organic content and ads across social media accounts and have the content automatically localised will help us take our digital marketing to the next level in a scalable and efficient way.

Localised content up to 500 percent more effective

Andrew Mitchell, who has a long background in advertising and marketing, believes that the majority of franchise brands are underutilising digital marketing in a local context, but says that Anytime Fitness is a good example of how Storyteq’s Brand Amplifier tool is opening the door to a digital local marketing future.

‘Brand Amplifier’s organic module enables content to be cascaded down to each local franchisee social account, with the content automatically localised. The marketing team can monitor all local pages in one dashboard.’

The paid module allows digital marketing at scale, with national campaigns split into multiple local campaigns automatically. This local approach frequently outperforms a generic national approach by up to 500 percent, Andrew says. ‘People are always much more likely to engage with a local ad.

‘The module also allows franchisees to select from a library of preconfigured social and Google Adwords campaigns and fund them with their own budget. Franchisees simply choose a daily budget and press ‘play’ to activate their own local campaigns.

‘It means brands that were hesitant to create local pages in the past can have confidence that they can monitor all page activity and reviews in a single dashboard. It helps franchisors and franchisees to make the most of the franchise model, rather than be restricted by it.’

Starting the journey to marketing transformation

In addition to Anytime Fitness, Storyteq is an international supplier to such well-known franchise brands as KFC, Costa Coffee, Pizza Hut, Pret A Manger. In New Zealand, local clients already include Unichem, Four Square, Caci, Active+, Robert Harris and MTF Finance.

‘Brands that do true local digital marketing stand to gain a significant edge on their competitors. We’re seeing some very large retail brands channel more and more of their consumer ad spend through the app simply because the local nature of the ads significantly out-performs generic campaigns.’

Andrew says, ‘We love meeting with franchise brands large and small, regardless of the outcome, so if you want to learn more about what Storyteq can do to help your franchise, contact me and let’s talk effective marketing.’

Storyteq www.storyteq.com

Anytime’s brand portal enables their clubs to create the marketing material they need, while ensuring it is always ‘on brand’.

Anytime’s Vanessa Parker says the key to the success of their brand portal is how easy the template software is to use by clubs

BUILD A LIFE YOU LOVE

Established in 1994, Muffin Break is one of New Zealand’s most loved bakery cafes. Owned by the Foodco Group, the brand has been serving local communities around New Zealand for almost three decades.

We believe that the ‘Good Goes In’ across everything we do. From our extensive product range and awardwinning signature coffee blend, to our comprehensive training and support for our franchisees, our philosophy is about producing the very best.

If you want to join a Franchise business, then join the Muffin Break family. Reputable, reliable and trusted for over 28 years, this is a fantastic franchise opportunity to run your own bakery café business and be part of a franchise brand that’s world renowned and recognised. Our stores are locally owned and operated by franchisees who are proud of the communities they serve and love nothing more than to see you leave with a smile on your face.

We’re always fabulously fresh

The good goes into each muffin – every Muffin Break café has its own kitchen and our products are baked fresh throughout the day. Our range includes Traditional flavours, as well as Gluten Free and Wholemeal Vegan, and we are constantly innovating to ensure we support our customers’ dietary needs. Nothing beats the smell and taste of freshly made coffee. Coffee is an integral part of our business; one we take very seriously. Our Head of Coffee carefully selects only the highest quality, 100% Arabica beans from five different growing locations around the world. We then create a signature blend which has won numerous awards.

We’re wholly wholesome

Our food is good for the soul. It’s simple, homely and delicious. We search for ingredients that are both satisfying and delicious.

We’re people pleasers

It’s the most fundamental part of our recipe – we make products that people love! We’ve been in business long enough to know that fads come and go. While we always adapt and try new things, we stick to the principle of making wholesome food that we know people love. Muffin Break is a nostalgic brand for many and a fundamental part of the New Zealand community.

THE NUMBERS ALL ADD UP

A better option

The Office Professionals is a brand-new opportunity for bookkeepers with big ambitions

Are you a bookkeeper or tax agent working hard but struggling to progress? Or new to the industry but keen to start up on your own? Looking to build a full-time business or supplement existing income? Cheryl Roberts from The Office Professionals knows your frustrations, and she’s ready to help.

For over a decade, Cheryl has built a solid reputation for providing a valuefor-money mobile bookkeeping service that helps support business clients with their financial and admin needs as their businesses expand. Her company is three-times overall winner of the Rotorua Most-Trusted Business Awards.

‘We provide a comprehensive range of support services, including GST returns, property schedules, invoices & statements, general financial/ ledger reports, company formations, payroll/PAYE, cash books, remittance advice & payments, personal tax returns, administration services, and more,’ she explains. ‘Our personalised bookkeeping services support businesses through their growth and development and save our clients precious time, money and resources.

‘The Office Professionals has earned a reputation for transparent, competitive pricing and honest, upfront communication. Now we are expanding and sharing our industry knowledge and business model with like-minded people who can benefit from the brand strength, systems and negotiating power that come with being part of a larger group.’

Target market

The Office Professionals franchise appeals to all sorts of businesses, especially SME owners who want to connect with a ‘real person’ about their MYOB- or Xero-hosted accounts and enjoy a totally personalised support service.

‘It’s a vastly different service from the larger chartered accounting firms,’ Cheryl points out. ‘We don’t charge the big money, but we do take time to help our clients understand what the figures really mean.’

‘Franchisees can look forward to comprehensive training, professional development, operational support, and executive guidance that supports growth from day one. They will also benefit from ongoing tax filing and compliance assistance, as well as call centre and marketing support from a dedicated franchisor invested in their success.’

Healthy prospects

The Office Professionals is aiming to appoint franchisees in all the country’s main centres, with already-established strength in the middle-to-upper North Island. So, who would make an ideal franchisee?

‘You need to have a finance background, be registered as a tax agent and/ or have bookkeeping experience,’ says Cheryl. ‘You’ll also need at least intermediate-level computer skills, along with solid analytical and dataentry ability. Apart from that, excellent written and verbal communication will help you thrive, along with professional presentation and a can-do attitude.’

‘We will guide and support you to get your business established with the right tools, training and advice on the best way to market services to clients and maximise revenue. You’ll also have an exclusive initial marketing period in your territory until you’re operating to an agreed level.’

Cheryl Roberts

One question Cheryl expects from anyone new to the bookkeeping industry is, ‘Why shouldn’t I just go out and start my own bookkeeping business? What makes The Office Professionals franchise a better option?’

She explains, ‘Yes, you can start your own business – but can you grow it, sustain it, spend time marketing it and developing systems while still servicing your clients? People say up to 80 percent of new businesses will fail within the first year, while many others never really take off. This is why The Office Professionals franchise business model provides such peace of mind.

‘We’ve developed a robust, flexible and lucrative business model that has been proven over many years,’ says Cheryl. ‘With The Office Professionals, you’ll have access to support and guidance to ensure you maximise revenues and build a business worth having – and worth selling, when the time comes. As a long-term investment, The Office Professionals franchise could pay for itself 20 times over. Contact me today and find out more.’

WHY PAY

f there’s one topic guaranteed to create discussion among both franchisees and franchisors, it is franchise fees – both initial and ongoing. How are they calculated? What should they cover? How much should they be? Can they be reduced – or increased?

All of these questions and more are sure to arise in any such conversation. This article sets out to explain the purpose of franchise fees and the value franchisees should receive from paying them.

Franchise fees can broadly be divided into two types: initial and ongoing.

The initial franchise fee

Nearly all franchises charge an initial or upfront fee, a one-off payment made by a new franchisee to the franchisor upon joining the franchise. The fee charged will vary markedly from system to system as it reflects the individual circumstances of that particular business.

However, it will usually pay for the right to use the franchisor’s trade name, trademarks and operating system for the period of the franchise term; services to help you establish your new business; access to the confidential operating manual; any specialist computer software or set-up; initial training for you, your partner and/or key staff; and on-site assistance and training at your location prior to or during the opening period. In many cases, the initial fee will also include a marketing programme to launch your new business, although sometimes this is accounted for separately.

The purpose of this fee is usually to recover the costs incurred by the franchisor in training you and helping you establish your new business, and to repay a proportion of the costs that they have incurred in developing the franchise system in the first place. However, in some cases, the franchise fee is set below cost for marketing purposes, on the basis that attracting good franchisees who will succeed and assist the growth of the franchise system long-term is more important than the immediate recovery of costs. If this is not an issue, an established franchise with a good brand may justify a premium and charge accordingly.

Where buyers need to be vigilant is if the franchise fee is set at a higher level in order to provide an immediate return to a franchisor, rather than the franchisor expecting to make money from the ongoing success of the franchisee. If the franchisor has already made his money, he may be less likely to be concerned about the long-term future of the business.

As always, taking professional advice from a franchise-experienced accountant or consulting your bank’s specialist franchise division will help you to understand where your own chosen franchisor stands on this

Ongoing franchise fees

Once a franchisee has joined the franchise system and begun trading, they will also be liable to pay ongoing fees. These fees may also be termed royalties, management service fees or ongoing franchise fees, and they are intended to pay for a variety of services.

The ongoing fees charged by a franchisor, and the services provided in return, also vary from franchise to franchise. Some systems provide a high level of support to franchisees: for example, computerised point of sale systems which not only offer easy financial and stock management

Every franchise charges fees one way or another. Why do you have to pay them, and what do you get for your money?

FRANCHISE FEES?

but also ordering from suppliers. Where such a system is linked to the franchise support function, it enables the franchisor to monitor ongoing trends not just on a system-wide but also an individual basis, and to provide pro-active assistance to franchisees when required. Such a service is expensive to establish and maintain, but is extremely valuable to a franchisee and therefore will require (and justify) a higher level of ongoing fees.

On the other hand, a franchise business in an industry such as dog washing might require little individual support on an ongoing basis once each franchisee is established, although of course the franchisor still has a major role to play in such areas as co-ordinated marketing, supplier negotiation, research & development and communication. It might therefore be reasonable to expect that ongoing fees charged will be at a lower rate.

In addition to the ongoing fee paying for the provision of services, appropriate field support and the upkeep of the franchise support office, it should also include a measure of profit for the franchisor.

This should not be begrudged by franchisees: if the franchisor is not making a profit from the business, then there is little incentive for him or her to stay in business and support the ongoing development of the system. As long as the franchise is properly structured so that both

franchisor and franchisees make a fair return on their investment over a reasonable period, everyone should be happy.

In some cases, ongoing fees may be charged separately for different services, such as:

• Management Fees

• Training Fees

• Conference Fees

• IT Fees

• Accounting Fees (where additional services are provided)

The most important thing about fees is not what they cost or what level they are set at, but what services they pay for. Any fee charged should be justifiable by the franchisor and shown to provide specific benefits to the franchisee of a value at least equivalent to the cost.

How are ongoing fees calculated?

There are a number of different ways that ongoing fees can be calculated, and all of them are perfectly acceptable providing they are fair and clearly understood by both franchisor and franchisees. The following are all commonly in use in New Zealand, with some systems combining one or more of the methods.

1. A straight royalty payment calculated as a percentage of franchisee turnover (not profit). Such a method requires the franchisee to declare their turnover and to pay the ongoing fee on a regular basis (often by direct debit from their account). This has the advantage of fluctuating with a franchisee’s sales, so your business pays more only as it grows.

2. A flat-fee payment on a weekly or monthly basis. This is a very straightforward system and is commonly used in industries such as home services where the calculation of weekly turnover would be a difficult and time-consuming task for all concerned (not to mention open to abuse). In some systems, the level of fee varies within bands according to the size of the business.

3. A mark-up or margin on products provided. This means that franchisees pay only for what they actually buy, so offers many of the same advantages as method 1. If the franchisor is manufacturing or wholesaling product, a mark-up is reasonable providing the product remains competitively (preferably advantageously) priced compared to similar products available on the open market.

4. A commission or rebate paid by suppliers under a similar arrangement to method 3. In some systems, the franchisees pay no fees and the franchisor manufactures no product, but the approved suppliers pay rebates to the franchisor on all products supplied to franchisees. This is a perfectly acceptable arrangement providing it is transparent to franchisees, and providing franchisees buy only through the approved suppliers.

5. A fee, mark-up or margin on services provided. If the franchisor is providing, say, a central booking facility or debt collection services for the franchisees, these may be charged for separately. As with method 3, such services need to be charged for at a competitive rate.

6. A margin created by taking the head lease of a property and sub-leasing it to a franchisee. In some cases, this may be the only way a franchisee can get into a certain property, as some landlords prefer to deal with franchisors. Once again, this is perfectly acceptable (McDonald’s use this system) providing it is transparent to franchisees.

Many franchisors use a mix of two or more of the above methods in their fee processes.

Marketing fees

In addition to the fees which are charged for services which the franchisor provides (and their profit element), many franchise systems also require franchisees to make a contribution to a marketing fund. This is not a revenue stream for the franchisor and should not be seen as such by either party. The franchisor is accountable to the franchisees for monies gathered and spent for this purpose, and franchisees may well be involved (either through a franchise advisory council or a special marketing committee) in deciding how they should be spent.

National marketing contributions are usually required in addition to any funds spent on local marketing by franchisees. Many systems will actually require both, and they are budgeted for accordingly.

Marketing contributions are usually collected via percentages, flat fees or margins. In addition, contributions may be made by third party suppliers, either directly into the fund as negotiated by the franchisor or through the provision of agreed joint promotional material for use by franchisees. Suppliers might also contribute to the costs of conferences, new product training, supplier expo’s or a variety of other activities.

Once again, it is wise to ensure that any such arrangement is declared to franchisees, as nothing is likely to upset a franchisee more than the ‘discovery’ that the franchisor has an additional source of income covering expenses which the franchisees might believe are coming out of the franchisor’s own pocket.

What’s the norm?

Having explained all that, one of the questions that is most often asked by prospective franchisees (and by some prospective franchisors) is, ‘What’s the normal level of franchise fees?’ Indeed, we sometimes hear of new franchise systems where the fees have been set at a certain percentage because the franchisor’s lawyer, in drawing up the agreement, had said ‘That’s what most other franchises charge’. Such an approach is

incredibly dangerous: fees need to be worked out on the basis of paying for essential services, rather than on the basis of any real or imagined ‘norm’.

In fact, the range of ongoing fees calculated on a percentage basis will vary considerably from 0 percent (where one of the other methods of generating revenue is used) to 15 percent or above (where considerable services are provided to the franchisee). While the average level of a turnover-based ongoing fee might be around 5-6 percent (excluding marketing contributions), this is meaningless without knowing what it pays for.

Prospective franchisees need to take advice to determine whether the fee structure of any particular franchise represents value for money. Talk to existing franchisees as well to see if the support services are as promised.

Do I have to pay?

Because fees mean money, and the money flows from franchisee to franchisor, if there is any problem in the franchise then a disgruntled franchisee may be tempted to withhold paying their fees. This can occur if the franchisee feels they are not getting value for money, or if they are having some financial problems themselves.

Whatever the reason, withholding fees is a dangerous course of action because it will almost certainly put the franchisee in breach of their franchise agreement. If that happens, the franchisor may be entitled to terminate the agreement, potentially leaving the franchisee with very little.

In the event of any dispute or difficulties, therefore, it is far better to communicate with the franchisor and attempt to resolve problems amicably. Disputes may be resolved with the help of a mediator, while financial problems are best worked through with the assistance of the franchisor. They are likely to be able to identify the reasons for the problem and help to find solutions.

While the withholding of ongoing fees is an obvious cause of dispute, when fees are calculated on a percentage basis a franchisee can be tempted to under-declare revenue in order to pay lower fees. This is called ‘skimming’, and effectively means cheating the franchisor out of some of the fees due to him.

In addition to cheating the franchisor, some franchisees will try to cheat the IRD as well. The dangers of doing either should be obvious: the first is fraud and the second is tax evasion. The penalties for either are considerable. A franchisee caught skimming might lose their business, lose their investment, be subjected to a heavy fine or even end up in prison. Is it worth it to cheat the franchisor out of a few dollars?

Even if not caught, a franchisee who consistently under-declares turnover is going to find that, when the time comes to sell, they are unable to get the price for the business which it should command because the books do not tell the full story. That means that one of the biggest advantages of building up a successful business – the tax-free capital gain on sale – is going to have been partially squandered.

Human nature being what it is, however, skimming does go on to a certain extent in many systems. Where the ongoing fee is a flat one, or where the fee is gathered by means of a mark-up on products supplied, skimming is less of a concern but even then it can happen. Where skimming becomes obvious, the franchisor has to take action for three reasons:

i) They need to protect the integrity of the franchise agreement.

ii) They need to protect other franchisees against the actions of a rogue member of the group.

iii) They need to protect the revenue stream that pays for vital support services for the whole group.

A franchisee tempted to skim needs to consider both the legal and the business implications of doing so. If franchisees across a system routinely skim their fees, who will be the loser? The franchisor requires a certain level of profitability in order to maintain interest in the business, so in many cases the lost revenue will come from the area of support services. Those support services are there to help franchisees improve sales, improve profitability and improve their competitiveness in the future. A franchisee who diverts funds from those areas damages their own business and those of their fellow franchisees.

Mutual trust

Franchise relationships are based not just upon a legal document but upon mutual trust between franchisor and franchisee. That trust has to be there in the beginning, and it has to be built upon over the years in order for both businesses to flourish.

Creating trust in the beginning requires the franchisor to be honest and open about the services they are going to provide to the franchisee and how those services will be funded. As long as that is clear from the start, there will be no nasty surprises – and no grounds for dispute – later on. Maintaining that trust requires clear communication on an ongoing basis. If situations change – more or fewer services are needed, more or fewer sources of revenue become available – then by sharing that information both franchisor and franchisees are involved in the future of the system as a whole. And if everyone is properly involved, the chance of skimming by franchisees is reduced.

In summary

To summarise, there is no one level or method of collecting franchise fees that is applicable to every system. If you are looking at buying a franchise, don’t compare the level of fees to some notional ‘norm’. What is important is not how much they are, but how much value the services they pay for will bring to your new business.

Once you are operating your franchise, accept that the fees are there for a good reason – they are the fuel that enables the franchisor to drive your business, and those of the other franchisees, on to greater heights.

About the Author

Lorraine Lord has been involved in franchising for over 40 years. She has a background in field support and franchisee training, as well as having run a franchised outlet in the UK.

LOOK BEFORE YOU LEAP

Franchising is a powerful way of doing business, but the same forces that make franchising great also create vulnerability and risk. We know what works, what doesn’t, and how to respond to the issues that arise.

We help with:

· Assessing franchise opportunities

· Advising on franchise agreements and other contracts

· Franchise sales and purchases

· Dealing with difficult situations

All franchise agreements put a lot of power

Drones offer

sky-high potential

We’re looking for people with:

• Good eye/hand co-ordination

• General computer, accounting and management skills

• Good people and communication skills

• Can follow systems and processes

• Business driven and customer focused

As a SkyTech Franchise Partner:

• You will own territorial rights

• No licence or experience is required

• SkyTech’s drones are leased to franchisees (meaning no up-front equipment cost for franchisees, reducing the risk posed by changing technology)

• We provide a full training programme

Around the world, state-of-the-art drone technology is creating efficiencies across a wide range of sectors as drones develop greater precision and load carrying capacity

Become a part of this exciting industry with SkyTech. We offer two franchises: Agriculture and Commercial. Plus there’s exciting potential for expansion with national and local government work.

New Paper Plus owners achieve their dreams with businesses they love

Glenn Rix loves his Paper Plus outlet. ‘Everything about it is great and if I were asked to do it all again, I most certainly would. In fact, I’m keeping my eyes open for a second store in the future.’

Retail might have had its challenges recently, but Paper Plus is different. Apart from being a strong, nationally recognised brand, it’s also a cooperative owned and operated by its local franchisees. That’s given it a place in the heart of the communities it serves, as well as a big focus on franchisee profitability – something Glenn discovered early on.

Glenn was an IT specialist contracting to a major computer company. ‘Great money, but I was getting burned out and when I reached my mid-forties, I began to ask what I was going to do with my life? It sure ain’t easy changing careers at that stage, and you’re unlikely to get the same kind of money as IT, but I found a small business on Auckland’s lovely Whangaparāoa Peninsula which I felt I could grow.’

Glenn purchased a well-established Cartridge World franchise at Coast Plaza in 2016, but as some chains moved to a new centre in Silverdale, new sites and new opportunities became available. ‘I got in touch with an uncle of mine who started the first Mitre 10 in Central Otago 40 years ago, and his business advice was quite clear: “Get a Paper Plus!” I contacted the franchise, and they did an assessment of the potential site in the Plaza, which was negative, so I dropped the idea.’

Worth the wait

‘I found it very reassuring that the franchise was so focussed on every store being viable, so 18 months later, when NZ Post announced they were closing their premises and looking for an agent, I contacted Paper Plus again. Their franchisees have quite a few NZ Post agencies, so they knew a lot about it. They did another study and I was able to open my brand-new store in July 2021.

‘Covid caused some interruptions at first, but at the end of our first full trading year we’re profitable, the figures are well above the budget, and I’m very happy. I also enjoy being part of the co-operative group’s Member Advisory Board. We all bring different experience to the table and there’s a great attitude of sharing.’

Too good to leave

Anita Kingston of Paper Plus Gisborne has been involved with the franchise for many years. ‘I started working in one of the Auckland stores in 1999, then my husband and I went to Australia and had three children. When we returned in 2006, I was very keen to jump back into a job with Paper Plus because I remembered how much I loved it. My boss for almost all the period I’ve been involved has been John Graham, who has owned up to seven stores simultaneously.’

Work was one thing, but Anita and her husband wanted to buy a house, and

Glenn Rix (second from left) and his team at Whangaparāoa

found that was increasingly difficult in Auckland. ‘Also, I was getting very tired of commuting, and we seriously began to consider moving out. When the Paper Plus store in Invercargill came on the market, I half-jokingly suggested to John that we buy it in partnership. He said we should take the Gisborne outlet instead, and here we are!’

A better life

Anita overcame a few problems, not least buying a home and a business at the same time – ‘We’d never have got both in Auckland!’ she laughs. But after taking over the Gisborne Paper Plus in September 2019, it has been everything she wanted. ‘It has fulfilled my dream. The commuting is easy, the school drop-offs are easy and my owner-partner John comes down from Auckland when he wants some sunshine. It has been a learning curve moving from Auckland, but one which we don’t regret for a second.

‘What I love about Paper Plus is that each store is unique and, despite being a very cohesive group, we have the flexibility to do our own thing. I certainly wouldn’t have done this without the support and training of the group, and I’m deeply involved in many aspects as a member of the Book Buying committee, and the Member Advisory Board.

‘If you’re interested in owning a Paper Plus, I suggest you talk to every franchisee you can, and get all the advice and feedback you can. You’ll always be part of a great team, and you’ll enjoy owning a business that is both rewarding and exciting.’

All the support you need

Carrie Welch, Chief Operations and Customer Officer for Paper Plus, says that Paper Plus is looking for owners both for new and existing stores.

‘Investment levels vary according to location – with our track record, we find the banks view lending to new Paper Plus franchisees favourably, compared to potentially higher-risk small businesses. Full training and support are provided, and our community of franchisees is always happy to lend a hand, too.

Paper

operations@paperplusgroup.co.nz

Anita Kingston

LAUNDROMAT OWNER HARD AT WORK

The hardest part of owning a Speed Queen self-service laundromat is deciding how you will spend your “work” day.

If you are looking for a truly passive income with an excellent return on investment, get in touch to fnd out more about Speed Queen laundromats.

BUILD IT AND THEY’LL COME

Paul Screach and his business partner Mimi Chua know how to make technology work for them, although the contrast between their business ventures couldn’t be greater. Back in 1993, the pair set up one of the first digital printing outlets in Auckland. ‘Back then, that still meant long hours and hard work, but when we sold in 2006 it was a highly successful business,’ Paul recalls.

‘But Speed Queen is better. The automation and cash-free technology of their laundromat equipment is brilliant, and enables us to run our business from anywhere, even overseas! And while Covid damaged many businesses badly, for us that was not the case – all the manned laundromats in the country had to close during lockdown, so we picked up a big increase in customers. Since then, it’s only grown further, and now we are opening a second laundromat in South Auckland.’

Mimi and Paul had been on a quest for the perfect business for some time. ‘We have family overseas,’ says Mimi, ‘and we did a lot of our research on various trips, but it wasn’t until Speed Queen came on the scene that the technology caught up with our ideas by moving away from coins or tokens to cashless payment systems. Many NZ laundromats have bars on the windows and have a major security problem – the technology Speed Queen offers removed all those concerns for us.’

20-30 percent returns

Speed Queen-equipped laundromats are providing instant solutions like these to customers – and investors – worldwide. ‘The return on investment is in the region of 20-30 percent, and some of our owners have done much better than that,’ says Royce Little, Speed Queen’s head of laundromat sales.

‘We’re seeing New Zealand follow the trend in America for self-serve laundromats to become more and more popular as apartments have grown smaller. As Mimi and Paul have discovered, demand is constantly growing.’

Speed Queen is not actually a franchise – you operate under your own name, but Speed Queen provides all the equipment and assistance you need to get up and running. ‘We were very impressed with the service the company offered,’ says Paul. ‘Mimi and I had already selected a site in the Auckland suburb of Glendene, and from there approached Royce and his team for their advice. They are the professionals and have never yet built a site that failed so we reckoned it was worth listening to them. They agreed it was a good location and, a little over two years ago, we opened our doors. We were almost immediately interrupted by lockdown, but in our case that proved to be a marketing bonus!’

Earn 24/7

Paul explains, ‘The appeal of Speed Queen is the 24-hour, cash-free operation which means our machines are earning a return at any hour of the day or night. We focussed on delivering a modern laundromat experience and the customers came. Speed Queen predicted it would take just three months to get up to speed, which it did, and thereafter the figures and numbers have been spot on – only proving their expertise!’

Paul and Mimi have found the Speed Queen experience to be completely positive. ‘The great advantage of Speed Queen is that you are running an unmanned site which is constantly working for you, and you can operate it remotely. You need to be able to respond to calls and queries – all of which you can do via the technology – but other than that, the only major outgoing is to have a cleaner come in regularly, for which we have a contract in place. It really does offer value for money to all parties –investors and customers alike.’

Built to last

There are no issues with reliability, either. ‘Speed Queen machines are built to last,’ says Royce. ‘We’ve equipped over 50 outlets in the last two years and supplied six of the largest laundromats operating in the southern hemisphere. We use the best and most robust machines in the business and we don’t expect to replace any of them inside 15 years.

‘A medium-sized investment will be between $250,000 and $300,000, with a cash deposit required of $75-100,000. Most owners take advantage of our finance partners for the remainder. If you are interested in opening your own cashless, money-making business, give me a call so we can discuss the options.’

Paul and Mimi certainly have no regrets. ‘When we started our research, one of our major criteria was to own a business that would free up more of our time while providing a substantial return on investment. The kind of business that excites us both is something pioneering and ahead, just like the digital printing industry in the early days.

‘You can’t get much better than Speed Queen as a passive investment and income – the quality of the machinery is first class and, best of all, it’s always working for you!’

Advertiser Info

Speed Queen www.speedqueen.co.nz

Contact Royce Little

P 0-9-528 5600 royce@speedqueen.co.nz

Speed Queen laundromat owners enjoy reliable machines, reliable demand and reliable returns

Buying a Franchise

FRANCHISE SALES SOLUTIONS

Finding the right franchisee is a time-consuming challenge – a business broker with franchisor experience can MAKE A REAL DIFFERENCE

We will

• Work with you to sell new locations and/or re-sales

• Understand what you need in your franchisee

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• Screen prospects to agreed criteria

• Negotiate and close sales

Clyth MacLeod Business Sales has a 50 year track record with over 9,000 businesses sold

Focus & Certainty Legal Franchise Specialists

Buying or setting up your first or next franchise is a big decision.

Justina Knox and the Hamilton based team’s personalised approach is focused on understanding your motivations for wanting to own and run a franchise business.

This means the legal advice is not only commercially focused and pragmatic but is also aligned to your goals and ambitions.

Beyond this focused approach, Justina and the team provide fixed fee quotes to ensure that you have a certainty of budget.

Contact Justina on 07 839 1122 | justina@blegal.co.nz or visit botherway.co.nz/franchising

For a personalised approach, with a fee that allows you to focus on getting your business up and running.

If you’re looking for a business opportunity, how do you go about finding a franchise that can deliver what you want? Buy a good franchise and you stand every chance of success. All the effort you put into developing and marketing your new business will be directed towards activities that really work, offering a product or service that people really want. But buy a franchise that isn’t so well developed and you’ll use all your energies trying to overcome the flaws; worse, your efforts might just multiply problems you can do nothing about. That’s why you need to choose your franchise carefully.

What are the differences that make one franchise successful while another one struggles? Let’s look at the ingredients that make up a quality franchise system. These can be broadly divided into seven main categories:

1. The business and industry

2. The franchise itself

3. Establishing new franchisees

4. Systems in place

5. Ongoing business management

6. Maximising Return on Investment for franchisees

7. The franchise culture

1. The business and industry

For any business to succeed, it must provide a product or service that people actually want, at a price they are willing to pay, and which delivers a profit to the business owner after all costs are taken into account. The key ingredients here are:

Proven product or service

If you are looking at any franchise, you need to be certain that the main product or service is a popular one with a real market. If the business has been operating for some time that should be quite easy to confirm. Talk to the franchisor, to franchisees and to customers. Have a look online to see what people are saying about the brand and what feedback they give about its products or services versus those of its competitors.

Real market

Successful franchises not only have a great product or service; they have a large enough market to sell it at a profit on an ongoing basis. New Zealand has a small population and if a product only appeals to a niche market, then it may not work here – even if it is successful overseas. But be aware that new niches are developing all the time: concepts such as Katsubi and Bricks 4 Kidz have been made viable by changing demographics. Equally, new technologies and new legislation constantly open up more opportunities: for example, the rise of online shopping has created massive demand for InXpress and Pack & Send, changing legislation makes Accessman or Jim’s Test & Tag a very interesting business option, while new technologies have inspired SkyTech (drones) and FiSBO (AI-enabled property auctions).

Strong brand

botherway.co.nz

For a business to attract customers, it has to communicate what it stocks or what it does, and what advantages it offers compared to others in the same market: price, service, quality, convenience, range or whatever. Having a well-known brand means that the business can short-cut that communication. If you see the McDonald’s logo, you know it stands for speed, cleanliness and a value range: if you open a new store with their

Buying the right franchise can take the fear out of starting your own business – but how do you choose a good one? Simon Lord suggests what to look out for

What makes a quality franchise?

name above the door, you will have a ready-made fan base. The stronger the brand, the more the franchise is worth – provided that it has the rest of the elements for success in place. A big customer base is only worth having if every sale makes a worthwhile profit. Which brings us on to …

2. The franchise itself

For a business to be successfully franchised, it must be capable of being reproduced in other locations and run by other people – the franchisees. Crucially, the level of profitability must be high enough that both the franchisor and franchisee can make a fair income from the business.

Proven business model

Good franchises have the experience to know what a franchisee needs to achieve in order to be successful, and have proven it across multiple locations. They have target percentages that have to be met in key areas such as rent, staff costs, power bills, fuel costs, wastage and so on. They have target figures for foot or vehicle traffic past a location, or the population numbers and type within a particular territory.

With this information, they can evaluate the probable success of any new venture and if the numbers don’t stack up, they won’t proceed –whatever the would-be franchisee might think. If the numbers do stack up, they are able to give the franchisee a good indication of the level of sales they need to achieve in order to build a viable business.

Financially healthy franchisor

For a franchisee to succeed, they must be on a sound financial footing with adequate finance and borrowing capability in place. The same applies to the franchisor – if the franchisor is not sound, the investment of all the individual franchisees could be in danger. As Grant McLauchlan of CrestClean, 2021 Supreme Franchise System of the Year, says, ‘It’s a big responsibility when you’re half-way across the river developing your franchise system, and you’ve already taken a franchisee’s money – that’s a hell of a time to realise that you haven’t got your strategy and funding in place, no matter how good your business model is. When we created CrestClean, we knew we wanted to create a brand that would be recognised throughout the country, and we planned accordingly.’

A good franchisor will provide would-be franchisees with a viability statement with key financial information and/or an independent audit. In fact, it is a requirement for members of the Franchise Association of New Zealand to include this within the disclosure document.

3. Establishing new franchisees

If the franchise you are looking at has all the above ingredients, that’s a good sign. Now you need to look at how the franchisor can help you establish your own business as a franchisee. Once again, there are some key elements that quality franchisors will offer:

Recruitment procedures

These vary greatly between franchises, but the best franchises have systems in place to ensure that the franchisee is selected for their ability to succeed and receives all the information necessary for them to make up their mind about the business. Part of this process is helping the would-be franchisee have a clear understanding of their role in the business and realistic expectations of what they can hope to achieve. And they shouldn’t just suggest you consult a franchise-experienced lawyer and accountant to help you get to this stage – they should insist upon it.

Initial training

When you buy a franchise, the chances are that you will be moving into a business – and possibly an entire industry – of which you have little or no experience. That’s not a problem as long as the franchisor has a good training programme in place. Franchisees are required to take in an enormous amount of information of varying types in order to learn not just how to operate the business (make pizzas, mow lawns or whatever it might be) but how to market it, manage it and handle the administrative and time-management functions that come with being self-employed.

A good franchise does not dump all this information on the trainee at once, but provides a series of stages that allow the franchisee to become comfortable in all their various roles before, during and after opening their business. They also provide manuals to refer to in the future.

Site selection

Because the franchisor has established various figures and percentages that they know will make their business model work, they can accurately assess the potential value of any site. I know one very successful franchisee – a previous Award winner – who had a very successful business in a particular location. When the circumstances of that location changed, the business model became unsustainable. That was not the fault of the franchisee or the franchisor, so there was no point crying about it – with the franchisor’s assistance, he simply found a new location where the model would work. Good franchisors can calculate whether a location is realistic.

4. Systems in place

Having the right product or service, the right people and the right location are all vital – the final element in establishing a new franchisee successfully is having the systems in place for them to follow.

Documentation

A good franchise relies upon using procedures which are the result of years of learning, development, fine-tuning and experimentation. These systems need to be properly taught by franchisors to franchisees, and by franchisees to staff, in order to ensure that the customer’s expectations of the franchise are met and that the franchisee is operating in a safe, efficient and profitable manner. Quality franchises document and present their systems in a way that franchisees and staff can easily follow – usually online, these days.

Information management

A quality business model means knowing what the franchisee needs to achieve in terms of both costs and sales in order to be profitable. However, this has no value unless you can measure the same figures that you are actually achieving in your own franchised unit on a regular basis and compare them with the targets, and with the figures being achieved in other comparable units of the same franchise. This is called benchmarking.

For benchmarking to be useful, the franchise has to have good

Thinking of buying or selling a Franchise?

The Franchise Law team has over 25 years experience in New Zealand, working with major Franchise brands

• We work with Franchisees

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• We provide supporting legal services

Thada Chapman Senior Franchise Lawyer

Thada is qualified to practice in New Zealand, USA (California) and South Africa. Franchising is her specialist area of law and she brings extensive experience.

0800 SOLICITOR (0800 765 424) thada@franchiselaw.co.nz www.franchiselaw.co.nz

information systems in place that are applied consistently throughout the franchise. These days, many such systems use cloud-based technology and may bring together accounting, payroll and point-ofsale software to make comparisons easy. However, it does require franchisees to be willing to share information for everyone to get the best from any benchmarking system.

Purchasing power

Large franchises often have considerable purchasing power; quality franchises make the most of that power to offer real competitive advantages to their franchisees. Purchasing power is not all about getting the lowest possible price: it’s also about terms, service, marketing assistance, rebates and many other factors. A wise franchisor mixes all these elements to get the best possible outcome for the franchise. You can learn more about this at www.franchise.co.nz/ articles/2947 – it’s one of the greatest benefits good franchises provide.

Transparency on fees

Whatever the financial relationships between franchisors, franchisees and suppliers, good franchisors reduce the possibility of confrontation by ensuring that any rebates, commissions, mark-ups or contributions to marketing funds are not concealed from franchisees. (see page 40)

Structure

Quality franchisors believe that in order for them to be successful, they need to ensure that their franchisees are successful. That is not to say that they have never had a franchisee fail – franchises can run into all sorts of problems, not all of them business-related. What it does mean is that they have a substantial proportion of successful and satisfied franchisees who have proven that the model works and that the business is structured in a way that enables franchisees to make a fair return on their investment and labour.

5. Ongoing business management

Once a new franchisee has been established, that’s not the end of the story. Ongoing success depends on continual input and response to change by both the franchisor and franchisee to help every franchised unit achieve its potential.

Re-investing in the business

Good franchises have always had a policy of re-investing in their businesses through product research, systems upgrades, adoption of new technology and other forms of support and marketing. Similarly, they insist upon franchisees upgrading their own premises or systems on a regular basis. If they do this well, it pays off – franchises that reinvest during economic downturns, for example, usually find themselves in a very strong position with increased market share and improved relationships with both customers and franchisees.

Competitive edge

New competitors come and go, markets change, customers’ tastes change. Good franchises can demonstrate a solid track record of managing issues and opportunities well, of learning from past mistakes and maintaining their advantage over competitors.

New technologies

A multi-award winning team

Technology can be a great way to waste time and money for a small business owner, but good franchises adopt new technology early when it can be demonstrated to provide real business advantages for franchisees. Columbus Coffee’s highly successful Rewards app has over 350,000 users, while Storyteq’s software allows individual franchisees to create localised promotional material and easily upload it to a variety of social media platforms. It’s not just about marketing, either: Xero and MYOB have revolutionised accounting, new franchise management systems can improve benchmarking and project management, while online training was rapidly adopted during the pandemic, improving processes while reducing costs.

6. Maximising Return on Investment for franchisees

Measuring and benchmarking franchisee performance is part of the process of helping franchisees to maximise the return they receive for the time, money and effort they put into running their business. A

www.conveyancingshop.co.nz

Franchising Law is a specialised field so it's vitally important to take advice from a firm with the right expertise

quality franchisor will have procedures in place to monitor and compare information from throughout the network, to spot trends and anomalies and to draw issues to the attention of individual franchisees at an early stage.

Improving profitability

Markets change, tastes change, opportunities change. A good franchisor uses both their industry knowledge and the information they collect to look for ways to boost franchisees’ profitability and protect their bottom line. This may involve increasing buying power, reducing overheads, increasing sales or improving performance. These are all activities the Franchise Awards judges look for in selecting winners and finalists – so should you.

Auditing of standards

The value of any franchise lies in its reputation for consistency and reliability, whatever product or service it offers. That’s why good franchises have various auditing procedures in place to ensure that every franchisee is meeting the required standards on everything from product quality to service time, image, cleanliness, layout, uniform and many other key measures. It’s not to check up on you – it’s to protect the brand, and every single franchisee’s business from rogue operators.

Support

Most franchises offer some form of ongoing support to their franchisees at different levels, but the best always go beyond the basic in-store consultations. Good support is not just about encouraging operational excellence – it’s about providing encouragement and assistance with sales skills, marketing, profitability, cash-flow management, calculating break-even, cost control, security, personnel management, insurance, staff recruitment and training, goal setting, business planning and so much more. It’s about ongoing education and improvement.

Acting on advice

It has to be said that while franchisors can offer good advice, franchisees are not always willing or able to take it. That’s one reason why, even in the best franchises, you will always find a small percentage of under-performing franchisees. It’s also why good franchisors help poor performers to get out of the business.

And good franchisees don’t just expect the franchisor to provide everything for them – they look outside for learning opportunities, too, upskilling themselves in areas from financial management to sales. They’re always working to smooth out their personal Wheel of Fortune, as Bill McGowan puts it on page 28.

7. The franchise culture

The final characteristic that distinguishes quality franchises from the rest is the culture: the mood within the franchise, the sharing of common aims and ideals and the level of trust that exists between franchisor and franchisees that each will do their best for the good of all concerned. This is developed in a number of ways:

Aligned expectations

Good franchisors ensure that new franchisees have a clear understanding of their roles and responsibilities, along with realistic expectations of what they can hope to achieve in the franchise. This helps to build trust right from the start.

Communication

Having a variety of communication tools helps keep everyone informed and on target, and helps to prevent misunderstandings. Phone calls, emails, regular meetings, conferences and visits all help. Quality franchises also encourage both formal and informal communication between franchisees, with intranets and online

discussion boards proving especially valuable in systems where franchisees may be far apart.

Franchisee input

Franchisee consultation and participation in strategic planning is actively welcomed by the best franchises through advisory councils and, in the larger franchises, committees on sub-topics such as marketing. Involving franchisees in decision making not only enables a wider understanding of the issues that the franchise faces; it encourages buyin to the decisions and produces better results.

Dispute management

All franchises experience disputes occasionally. Franchising is about business and personal relationships, and relationships can go wrong. The mark of a quality franchise is not that it doesn’t have disputes, but how it handles those disputes when they arise. Good franchisors respond quickly, listen to issues and seek early agreement on the way forward. If agreement cannot be reached, they seek mediation. However, if there is a problem that affects the franchise as a whole, they take firm and decisive action to protect the brand and the investment of other franchisees.

Confidence in leadership

According to Greg Nathan of the Franchise Relationships Institute, ‘Effective leadership is the single most important factor in the long-term success of a franchise network.’ The market is constantly changing and no franchisor will make the right decision 100 percent of the time. Even within the same system, what works for one franchisee will not work for another. But if the franchise has a leader who can set a clear direction and communicate it to everyone involved, who is seen to listen to franchisees’ concerns and is trusted by them to deal in an honest

and straightforward fashion, it will enjoy a culture that makes facing the challenges of business life a much more positive – and successful –experience for all concerned.

creating new stores ON TIME, ON BUDGET

Spaceworks are New Zealand’s trusted design/build/procure retail roll-out professionals

Whether you’re an established retail or hospitality franchise, or a new brand ready to go nationwide, Spaceworks are the experts to partner with to ensure a smooth, trouble-free outcome.

Spaceworks has been designing interior spaces that make a real difference for more than 23 years, building a reputation as New Zealand’s leading retail designer. With offices nationwide, Spaceworks collaborates with franchise companies in developing their retail strategy, store development, construction and procurement, giving clients one point of contact and accountability.

Their clients have included Caci Clinic, Joe’s Garage, House of Travel, Spark, Cookie Time and 2degrees – to name just a few. Scale is no problem either, from one outlet to many. The latest upgrade for 2degrees involved full turn-key solutions for over 60 outlets of the brand’s retail network around New Zealand.

And with the current cost of construction going through the roof, the design/build model that Spaceworks offers is proving to be an extremely popular option with franchises. ‘Not only does it make life easier for busy franchisors by reducing the number of people they have to deal with – by doing a design/build/procure, we are able to guarantee both costings and time-frames,’ says Bradley Keys, Spaceworks’ commercial director.

‘Because both parties agree and work to a set, competitive price, we deliver within budget, the franchisee knows the costs and their outlet is able to open on the specified date.’

It’s all about ROI

Delivering a strong Return on Investment through good design is what a Spaceworks partnership is all about. This is because good design can actually increase revenue, says Bradley.

‘A design should pay for itself within the first two years of operation. It’s about getting the most out of the design for the spend, and understanding how the business and customer flow works in order to maximise that return. One client with a strong retail presence who took our advice to reposition and increase point-of-sale facilities subsequently reaped the sort of significant increase in sales that would make a franchisee very happy indeed!’

Design, build, procure and maintain

Spaceworks doesn’t stop at just design/build/procure – for them it’s about design, build, and maintain, providing a total one-stop solution and peace of mind for the client.

‘One of the big advantages of our design/build/procure model is that we hold all the commercial warranties,’ explains Bradley. ‘So, for example, should a light fitting stop working or a chair become faulty, then the client just has to let us know and we’ll fix it. We call this “one-solve accountability” and it means the client never has to deal with any maintenance issues.’

Carbon-conscious and inclusive

With environmental awareness and sustainability becoming increasingly important to all consumer brands, climate-conscious franchises will be pleased to learn that Spaceworks developed New Zealand’s first internal Carbon Calculator.

‘We formulate a reduction strategy prior to design and construction in order to reduce the carbon footprint of every project,’ says Bradley.

‘When we’re creating a fit-out, we calculate everything that goes into the making of the final product in conjunction with Toitu, a New Zealandbased accredited carbon offset company. That helps businesses realise efficiencies, reduce their carbon footprint, and contribute to the world’s sustainable future. It reassures franchisees and customers, and can make for an interesting angle for promotion, too.

‘Clients and partners of Spaceworks who are conscious of the impact of embodied carbon on the environment can also offset their carbon emissions and choose where the carbon credits go.’

Spaceworks’ accolades include winning the Supreme title at the 2021 Rainbow Excellence Awards, reflecting its commitment to diversity and inclusion in design, and its application in a retail setting – for example, where gender-specific areas, such as changing rooms, have traditionally been a feature of store layouts.

Easier and more profitable

Bradley says that New Zealand has traditionally been a poor performer when it comes to retail design, because many people often only regard it as an extra cost. ‘It’s time we changed people’s perceptions. Design is not a huge cost but an investment – if you get it right, it will actually pay for itself and directly increase your revenue.

‘There’s no question that the one-stop design/build model is the best solution for franchise companies looking to establish or refresh their retail stores. It delivers certainty, while bringing in a level of expertise that can help franchises transform profitability.

‘At a time when margins are under pressure from all sides, Spaceworks can make a real difference. Franchisors, contact us today to discuss how we could make your brand refresh or roll-out easier and more profitable.’

As one client put it when asked for a testimonial, ‘We couldn’t be happier with the outcome. We’ve engaged Spaceworks for two more projects since completion – isn’t that reference enough?’

Cookie Time is just one of the franchises that has benefitted from Spaceworks’ experience

SBA Small Business Accounting understands your business – it’s a franchise, too

WE WALK IN YOUR SHOES

Over 1000 franchised businesses around the country are already using their local SBA office to help them manage their accounting and grow their businesses. And with 80 franchisees around the country, there’s sure to be an SBA branch close to you.

‘We get franchising because we’re a franchise ourselves,’ explains Craig Gardiner, the CEO of SBA NZ. ‘All of our franchisees have had to go through their own journey in buying into SBA – they had to evaluate the opportunity, do the due diligence and then make the big decision. Once in, they had to go through training and learn the tools and systems which help them deliver first-class accounting services.

‘So they have all walked in your shoes – and who better to support you in your own journey than an SBA franchisee? Buying a franchise is a big step and one that shouldn’t be taken lightly. SBA will help you make the right choice from the very start.’

Deciding your future

‘The best piece of advice for anyone considering buying a franchise is to have it evaluated by a professional,’ says Craig. ‘We see far too many people who have gone into a new business without properly looking at the numbers. and that makes it much harder for them down the track.

‘You need to find out how profitable it needs to be to break even; how much you need to invest up front; and what working capital you’ll need both initially and during the first year or two to meet your obligations, rent, power, internet, wages etc.

‘We can provide you with a pre-purchase report that will look at the numbers for any new or existing franchise to see if it really will work for you. This is also valuable when looking to apply to a bank for funding – having a properly-prepared business plan and cashflow forecast will also greatly improve your chances of getting finance, a loan or an overdraft facility.

‘Once you have a clear picture of the finances required and the support and resources available, you can move forward with your business venture with peace of mind and the confidence that you have the right advisors around you to make your franchise business a success.’

Ongoing advice

But it’s not just about buying a franchise. ‘Once you’ve been successful in purchasing a franchise, SBA will help you set up the financial structure, assist with GST and monthly bookwork, and prepare and file all the tax with the IRD,’ Craig explains.

‘SBA also helps with advisory services to help your franchise grow with business planning, cashflow forecasting and budgeting. The aim of SBA is not just to keep the business owner on track and meeting their obligations, but to help them understand and stay in control of their business so it can deliver the best possible results.’

Cartridge World franchisee David Rundle says, ‘SBA are great – they help me keep all my accounting on track, and have helped me to grow my franchise. They are easy to communicate with, and I love that they are local and I can talk to them when I need.’

Truly local support

With branches from Warkworth to Invercargill, there’s an SBA in most neighbourhoods. Not only does that mean individual franchisees can develop a relationship with a truly local advisor; it’s also great for franchisors who want a trusted accounting partner throughout New Zealand.

‘Because we are a franchise and really understand what franchisees and franchisors want, SBA can add enormous value to a network.

‘We already work with a large number of individual franchisees from brands such as Crewcut, Subway, Jim’s Mowing, Muffin Break, Ray White, CrestClean and Cartridge World, to name just a few.

‘So if you are thinking of buying a franchise or you are a franchisee already and would like ongoing accounting help, get in touch with your local SBA Small Business Accounting team at www.sba.co.nz/franchise-accounting.

‘Plus if you enquire and sign up before 31st May 2023, you’ll go into the draw to win one of 30 great prizes. We have $15,000-worth to give away, so get in touch now!’

THE NEED TO READ

Over the years, I’ve taken a great number of calls at the Franchise Advisory Centre which have all asked essentially the same question: ‘My franchisor wants me to do/stop doing/change/upgrade/divest something. Can they make me do that?’

Unfortunately for the enquirer, the answer is almost always the same: Read your franchise agreement. The answer will be in there.

After reading the franchise agreement, most franchisees find that the franchisor does have the authority to require a franchisee to do/stop doing /change/upgrade/divest something. Strangely, learning this can sometimes come as a shock. Conversations between franchisees and franchisors afterwards might go something like this:

Franchisee: I didn’t agree to this.

Franchisor: Well, actually you did. It’s in the agreement you signed.

Franchisee: Yes, but there’s a lot of stuff in the agreement. You can’t possibly expect a franchisee to read and understand it all.

Franchisor: But you also got professional advice from a lawyer before you signed the agreement.

Franchisee: Yes, but that was all in legalese and only because you wouldn’t grant the franchise if I didn’t get advice. I didn’t realise I would still need to do/stop doing/change/upgrade or divest something now –not after being in the system all this time!

At the end of such a conversation comes the awkward moment where the franchisor wishes the franchisee would just get on with it, and the franchisee is clearly reluctant to get on with it because they feel that, irrespective of what’s in the agreement, they haven’t tacitly agreed to do or stop doing whatever it is that was at the heart of the issue in the first place.

Despite the apparent contractual obligation of the franchisee to follow the agreement, the franchisee then often changes tack and questions why they need to do or stop doing something, thus forcing the franchisor to rationalise (possibly for the umpteenth time) why the outcome is needed.

The End Of A Beautiful Friendship

During these exchanges, frustrations can quickly build up on both sides. In the process, the franchisee’s respect and regard for the franchisor is diluted, and the franchisor often becomes more determined than ever to force the franchisee to do as they are told. It may culminate in the franchisor sending the franchisee a breach letter putting them on notice that unless they comply they may have their franchise terminated. Once threatened with the prospect of termination, a hitherto happy and productive relationship can be changed for ever. The franchisee sees red, the situation is inflamed, and nobody lives happily ever after.

The Ultimate Pre-Nup

Of course, both sides could (and often do) conduct themselves better in these situations than in the scenario above, but the point remains that the franchise agreement gives the franchisor significant scope to require certain things of a franchisee during the term of the franchise and, more often than not, franchisees are not fully aware of this at the outset or have forgotten about it by the time the issue actually arises.

Franchisees who don’t take the time to understand their obligations are storing up trouble, says Jason Gehrke

The most common reason for this is that many franchisees simply do not read their franchise agreements before they commit to the franchise or, even if they do read the agreement, they do not understand or retain its key details and obligations. Given the importance of the document, that’s a huge problem. You’ll sometimes hear people say, ‘Franchising is like a marriage between franchisee and franchisor.’ Well, if that’s true, franchise agreements are the ultimate pre-nuptial contract. Everything that happens in your married life (and, indeed, how things will be settled if the marriage ends) is taken into account in a comprehensive pre-nuptial agreement. Franchise agreements are no different – if anything, they are even more comprehensive than prenuptial agreements.

So Why Don’t Franchisees Read Them?

The decision to become your own boss, and the process of searching for the right business, is an emotional journey fraught with highs and lows. When a franchisee finds ‘the one’, the rational analysis of the decision can be compromised by the excitement and emotion of the prospect of finally taking control of your own destiny. Psychologists can make of this what they will, but the decision to buy a business has few parallels in many people’s lives.

The nearest comparison in terms of major life-changing decisions might be the decision to get married or the decision to buy a home. While a certain rationality may exist in both of these decisions, choosing spouses and homes are effectively emotional decisions and if these are the only frames of reference franchisees have, it is highly probable they will approach the decision to buy a franchise in a similar way.

In other words, they will choose a particular franchise because they like it, and then will rationalise everything else to fit the decision.

This means that when the time comes for the franchisor to provide the franchise agreement and disclosure documentation, a potential franchisee may already be wedded to the idea of buying the franchise. The advice they seek (if any) will be to validate their decision, not repudiate it. They will focus on the elements that attracted them in the first place, and often not consider or simply discount anything that doesn’t fit their decision – including the franchise agreement.

You still need advice

Once the decision to buy the franchise has been made, a franchisee can view the signing of the franchise agreement as a necessary formality to be tolerated, and the obtaining of advice about the agreement as an inconvenient cost and delay to be endured. This is hardly a mindset that lends itself to robust examination of the contents and implications of the franchise agreement.

The result of an emotionally-driven decision to buy a franchise is that the finer details are overlooked at the outset and only come to the fore as time and circumstance progress, leading ultimately to the sort of conversations outlined above.

How To Avoid Nasty Surprises

Of course there are a great many franchisees who do read their documents in full prior to buying a franchise and develop a complete understanding of their obligations under the franchise agreement before proceeding, but there remain many more who do not.

For those who fail to give the agreement proper attention before signing and are emotionally-driven in their buying process, life as a franchisee will sometimes include some unexpected (and not always pleasant) surprises. To avoid such surprises, every franchisee should always read everything related to the business (and get professional advice) before committing to buy a franchise. They should also get professional advice from franchiseexperienced professionals, particularly lawyers and accountants (see page 72). Franchise agreements are not exactly light bedtime reading, so it pays to get someone who understands the implications and obligations they contain to go through them and explain them. That way, the chances of unnecessary future conflict can be reduced and both franchisor and franchisee will be able to get on with building successful businesses based upon mutual understanding.

About the Author

Jason Gehrke is a director of the Franchise Advisory Centre and has been involved in franchising for over 30 years at franchisee, franchisor and advisor level. He conducts online franchise education programmes and publishes Franchise News & Events, a fortnightly mail bulletin on franchising issues.

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Awards mean rewards for franchisees

Cleantastic franchisees can double their investment in 24 months with a guaranteed income

Winning a major national Award is an endorsement for any franchise – but what does it actually mean if you are looking for a full-time or part-time business opportunity?

‘For us, winning the 2022 Business to Business Franchise System of the Year title reflected all the work that we have done to establish a culture that could ensure our franchisees are successful,’ says Greg Paget, franchisor for Cleantastic, the commercial cleaning franchise.

‘The clouds of Covid had a silver lining as we turned our business on its head to help our franchisees cope with the increased demand for their services, and that has served everyone well.

‘We offer an affordable entry fee; a 24-month income guarantee; clients to get you started; flexible hours; the ability to start small and grow, so you can stay in employment until you are ready to go full-time in your own business; or the chance to go full-time right from day one.’

Delighted by your success

Greg has been with Cleantastic for 18 years, buying the franchisor business in 2018. ‘We have a clear vision and a tremendous support team who recognise that without committed and successful franchisees, we simply wouldn’t have a business.

‘That’s why all prospective franchisees are only interviewed by me or one other colleague. When you contact us, we’ll not just look at your suitability, but your desire to succeed in business. With Cleantastic, you can grow as big as you want, keep it in the family or employ teams to do the work. We teach you everything we can about running a business and put a lot of work into helping you achieve your goals. And if, after some time you decide to move on, you’ll take the business skills you’ve learned at Cleantastic with you.

‘If we have helped you add value to your lives, helped your family enjoy better opportunities and a better lifestyle, we’ll be delighted by your success.’

Cleantastic’s different philosophy has clearly been a winner and makes it stand out from the pack. ‘We have great faith in our system and our franchisees, which is why we don’t tie our clients into contracts,’ Greg explains.

Excellent relationships

‘That gives us a big competitive advantage over many cleaning companies, who often tie clients down with annual contracts and complex clauses attached to roll-on periods. We take a different approach – we expect our clients to be delighted with what we do and if we aren’t delighting them, or if their circumstances change, they only need to give us a month’s notice. That’s fair, that’s honest and as a result, we’ve built excellent relationships all round.’

This was proved during all the disruption around Covid. ‘We concentrated on communicating with our franchisees and their clients, letting them know how we could help, what we were doing to keep everyone safe, and as a result our client base remained strong. Sadly, a few of our clients went out of business, but we picked up new business too as people became more aware of the importance of quality cleaning and hygiene. The message we got loud and clear was, “Cleantastic is doing a great job, we love having you and we’ll be happy to work with you in the future.” We provide the systems and our franchisees use them to deliver top quality service.’

We handle the hassles

As Greg points out, running a successful business these days is about more than the service itself. ‘Clients look for quality in every aspect from systems to training to health and safety, as well as peace of mind about environmental and insurance issues. All these things are important, but for a small operator they can mean big headaches and a lot of time spent on activities which don’t actually generate revenue.

‘Having a good franchise system behind you makes all the difference and allows you to concentrate on the work. Cleantastic has also proactively worked with MBIE and the Labour Inspectorate to develop good systems which help franchisees employ staff with confidence that they are doing the right thing.’

Low investment, finance available

Cleantastic already has close to 300 franchisees throughout New Zealand but there is room for many more, says Greg. ‘Really, there is nowhere in the country which does not have the demand for our unique approach, so there are opportunities everywhere.

‘You don’t need cleaning experience, just a great attitude and the desire to get on in life and build something for yourself. We have a very flexible purchase package starting from as low as $19,600 +gst including equipment, and with finance available (with some conditions).

‘Best of all, a new franchise comes with a guarantee of income for 24 months. That allows a franchisee to more than double their investment in their first two years, and reflects our confidence and experience in this business.

‘We take pride in developing motivated individuals into successful business owners. If that sounds like you, contact me and find out more about the award-winning Cleantastic difference.’

Greg Paget and the Cleantastic franchise support team

FANZ conference theme for 2023 is Meeting the Challenge –Driving Opportunity

The multiple challenges of economy, climate and pandemic recovery have affected businesses all over the country. Just as franchisees find strength in coming together, so the National Franchise Conference brings franchisors and franchise specialists under one roof to learn from each other, discuss issues and share ideas and solutions.

In 2023, the Conference will take place from 27-29 August and, for the first time ever, will be held in Christchurch. As always, the format includes keynote speakers, international insights, workshops, interactive discussion forums and networking opportunities. Last year’s conference was attended by over 200 people.

While speakers are still being confirmed for the new date, some key highlights are expected to be:

Bruce Cotterill. Bruce is a ‘transformation leader’ with extensive experience across a range of industries including real estate, media, financial services, professional services, technology and retail. As a CEO, he led real estate group Colliers in both New Zealand and Australia, Kerry Packer’s ACP Magazines, and iconic New Zealand sportswear company Canterbury International. He became a specialist at ‘fixing broken businesses and business models,’ and is regarded as one of Australasia’s leading keynote speakers.

Peter Holt. Peter will be flying in from the USA, where he is President and CEO of The Joint Corp – a health industry franchise with 850 clinics. He has over 30 years operational experience with brands such as Tasti D-Lite, 24Seven Vending, Mail Boxes Etc. and the International Franchise Association. Peter also worked with a Boston-based private equity firm, where he was responsible for identifying, qualifying and assisting in the due diligence process of potential franchisor acquisitions. Peter’s vast experience will make him a speaker not to be missed.

Bryn Harrison. Bryn is CEO of The Interiors Group which includes Curtain Studio and Carpet Court – one of the most successful retail brands in New Zealand, having won Readers Digest Quality Service Awards for the last six years running, and being the reigning Home & Lifestyle Franchise System of the Year. Since its creation in the 1960s, Carpet Court has successfully navigated massive changes – hear how they constantly stay relevant and successful.

Abbas Nazari. Abbas epitomises triumph over adversity. An Afghan refugee who fled the Taliban, he was one of the asylum seekers rescued by the MV Tampa in 2001. Having arrived here as an eight-yearold with no English, Abbas went on to be third in the New Zealand Spelling Bee a few years later, play representative rugby, and graduate from the University of Canterbury with a Bachelor degree in Diplomacy and International Relations. The closing speaker, Abbas

will share his journey, his experiences of thriving in a foreign country, and lessons learned along the way.

In addition to the speakers, there will also be panels and concurrent sessions on a variety of topics, including:

• Franchising trends & opportunities – leaders’ perspectives

• Expanding your franchise network

• Marketing & branding

• Motivation and drivers for franchisees

• The ever-popular Legal Power Hour

More keynote speakers and topics will be announced in the coming weeks – go to www.conference.franchiseassociation.org.nz/ for more details.

Awards 2023

Entries will open in May 2023 for the Westpac New Zealand Franchise Awards. Are you proud of your business and team? Do you want to give your excellent franchisees the recognition they deserve? Do you want to measure yourself against the best in the country? Could you benefit from some rigorous analysis of your model?

Entering the Franchise Awards provides all this and more for franchise systems, franchisees and specialist service providers – along with a lot of publicity opportunities. Entry is open to all members of FANZ – see the website for more details.

The value of membership

A 2022 survey found that 76 percent of prospective franchise buyers indicated it is important to them that their chosen system is a member of FANZ, and 67 percent felt it important that their advisors are members.

‘Only by dealing with FANZ members do buyers receive the protection of the self-regulatory framework that we have put in place for the protection of franchisees and franchisors alike, so membership is a valuable differentiator,’ says CEO Robyn Pickerill. ‘FANZ members particularly value the opportunity to connect and share insights unique to franchising, and thus continue to grow and develop their franchise networks.

‘Members also receive other valuable benefits, including:

• Representation to help government and agencies understand franchising;

• The opportunity to contribute to submissions on proposed legislative and other changes;

• Special members rates on events and activities around the country;

• Exclusive online seminars with specialist professional advisors;

• A free HR hotline;

• Preferred supplier discounts on insurance and fuel.

‘The Franchise Association has been the voice of franchising in New Zealand since 1996. We invite franchise businesses across the country to join FANZ and demonstrate your commitment to fair franchising and a great franchising future.’

The latest members to join are:

• Heritage Homes (see page 9)

• SkyTech (see page 44)

• The Office Professionals (see page 39)

FANZ members are clearly marked in the Directory starting on page 76.

Events Calendar 2023

10 May

Auckland FANZ Twilight

12 May National Awards entries open

26 July

27-29 August

Auckland FANZ Twilight

Christchurch National Franchise Conference

11 November Auckland Westpac New Zealand Franchise Awards

The event calendar is regularly updated, so for the latest details of what’s on around the country, please visit the Franchise Association website at www.franchiseassociation.org.nz, email contact@franchise.org.nz or phone 0-9-274 2901

Facing redundancy?

Simon Lord discusses the pros and cons of buying a franchise

AFTER REDUNDANCY

For the first time for a while, the R-word is rearing its head again – redundancy. While some businesses are crying out for people, others are finding the pressures after Covid just a bit too much and are shutting their doors or laying people off. It’s a crying shame but, if you are one of the people affected, it needn’t be the end of the world. For some people, dumping the whole employment thing and starting your own business will seem like a good idea. You might always have dreamed of being your own boss; you might have a pay-out to invest; you might feel more secure in self-employment; or, frankly, you might need to buy a job. Employers don’t always respect experience if it comes with an ‘over-40’ or ‘over-50’ label attached. If you own your own business, at least you won’t be made redundant again. Although it might not feel like it right now, many people who have been through it often say later that ‘Redundancy was the best thing that ever happened to me.’

If you are thinking of buying a business, though, a franchise can be your best option. A good franchise offers training, guidance, a known product or service and is, generally, a lower-risk way to go into business. Many franchises also offer you the chance to do something completely new – to move from recruitment to running a convenience store, say, or from a factory job to something which gets you on the road or out into the fresh air. If the industry you’ve worked in all your life is in decline, that can be a huge advantage.

At the same time, self-employment has its downsides – risk, hard work and reduced time to spend with family and friends, to name but three. Before you rush into a decision, have a look at the following reasons –good and bad – that might be motivating you.

Good reasons to buy a franchise

1. You are determined to control your own destiny. You must also be prepared to accept the risks of self-employment.

2. You want to do something different. A franchise offers you the opportunity to work in a different industry, or work with your partner or children.

3. You want to use your existing skills for a new purpose. Most franchisors look for skills and abilities, not experience in a particular field.

4. You want to learn new skills. Franchise systems almost all offer thorough training in their specific business. Providing you have the aptitude and the ability to learn, a banker can become a baker.

5. You want to retrain in a business that interests you. You might turn your hobby into your job, or follow a dream of owning a bookshop, or decide that running a café could be right up your street.

6. You want to use any redundancy money to do something that you might never otherwise have achieved. You can enter into business without endangering all of the other assets you have worked so hard to build up.

7. You want to create something for the future – yours or your family’s. Franchising offers a wide range of opportunities suited to two person or family operation.

8. You want to minimise the risks. Franchising is a lower-risk way of going into business than setting up from scratch or buying an independent small business.

Bad reasons to buy a franchise

1. You are afraid of being made redundant. Fear is a bad reason for buying your own business. It might get you out of your existing job, but you will need a positive reason if you are to enjoy having your own business.

2. You are frightened of change in your organisation. If you run your own business, you must always be looking for new ideas or better methods. Franchisors will be researching new systems, and will expect you to adopt positive initiatives with enthusiasm.

3. You just want to be in charge. Being the boss means taking responsibility for yourself and for others – not letting others do the work.

4. You want to take it easy. If you buy your own business, you will work harder than you ever have – at least at first.

5. Someone is offering you this great opportunity. If you really want to be self-employed, make sure you choose what you are going to do –don’t let someone sell you something.

6. You’ve got to do something quickly because you need to earn some

money. Most businesses (franchises included) do not offer an income for at least several months. A few will offer a work or income guarantee for a limited period, but there will be conditions attached. Read more about guarantees at www.franchise.co.nz/articles/242.

Is now the right time?

If, after reading the above, you think that franchising really is for you, research the idea further – here are some thoughts to help you get started. You’ll also want to have a look at Bill McGowan’s article on page 28 called Your personal wheel of fortune – it’s a really helpful way to look at the different options of starting a business on your own; buying a franchise; or deciding that self-employment isn’t for you.

You’ll also want to consider whether this is the right time to start a new business – the economy has taken a downturn and, if you’ve been made redundant, doesn’t that mean all businesses are struggling? Well, no, actually. As our cover story explains, if you select a franchise with a good solid base and a sound financial model, now could be a good time to start.

Franchises traditionally perform well during downturns and you’ll have an enthusiastic franchisor helping to stack the odds in your favour. There may also be some good new locations coming on the market as other businesses close. Choose the right franchise and you could be well-placed when the recovery comes - as it always does.

Whatever you decide to do take your time, take advice and make sure you have the full support of your family. Going into business is a big step so tread carefully. That way, you could be the next person to say, ‘Redundancy was the best thing that ever happened to me.’

Further reading

By the way, if you’d like to read more about buying a franchise after being made redundant, there’s a fascinating article on our website at www.franchise.co.nz/articles/3242. We interviewed four people who had bought a franchise after being made redundant, and asked them to share their experiences with us – their hopes and fears, their emotions at being made redundant and the effort they put in to turn things around in their own business.

It’s a realistic look at people who worked through what you may be facing now. We hope you find it inspiring.

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Bobby Singh went from driving a truck to steering his own successful Paramount Services franchise

MAKING A CLEAN BREAK

Bobby Singh spent much of his earlier career behind the wheel of a truck working for his sister’s distribution business. Not surprisingly, inspired by his sister’s example, Bobby loved the idea of owning his own business – but what could he afford? Was there a business opportunity out there that came with an excellent reputation, didn’t cost too much to get into and had the training and support to let you hit the ground running?

A friend of Bobby’s happened to run a commercial cleaning business, so Bobby tagged along with him a few times to learn exactly what the job entailed. Then he took his sister’s advice and researched what was available. That’s why, in 2012, he bought a Paramount Services franchise. 10 years later, he’s got a thriving business that’s grown every year and he couldn’t be happier with his choice.

Stand-out success

‘When I started looking around, Paramount stood out from the competition because it had been around for such a long time and had such a good reputation, not just with its customers but with its franchisees, too,’ says Bobby (above with one of his team, Levelevei Rankin, and Paramount Auckland Account Manager Josette Watson)

‘That’s really worked out for me. I started with a few small client sites and had lots of help from the support office. National manager Murray Hamilton is the key support person for my business – he’s regularly in touch, helping me to look for new opportunities locally and offering additional work as the Paramount contracts team brings on new clients.

‘As my business has grown, I’ve taken on more staff to handle the work, and Paramount has been great in helping me manage all that, especially in terms of systems, communication and training. That’s helped my team achieve and maintain the standards which keep clients happy, and of course having great support was vital during Covid when things were constantly changing.’

What do you need?

Murray Hamilton is proud of Bobby’s success, and says he quickly saw Bobby’s potential when they first met all those years ago. ‘There are certain attributes we look for, like positivity, problem-solving ability, tidy presentation, good verbal communication skills and a willingness to get things done. It helps to have an understanding of what it takes to run a business, too.

‘Bobby ticked all those boxes, especially positivity and getting things done, and that’s why he has succeeded. I remember telling Bobby that developing good relationships with customers is vital. Quality is important, and if customers know and understand their cleaning leader then it makes it easy for them to provide feedback, which in turn leads to excellent customer satisfaction.

‘Bobby really got this. I once met with the principal of a school being cleaned by Bobby and his team who said that in all his years of being associated with schools, Bobby was the best cleaner he had ever come across, along with being an excellent person to deal with. That’s the way to build a business.’

Why start now?

While the pandemic delivered a lot of negative outcomes for many business sectors, from Paramount Services’ perspective there was one big positive, too, says Murray. ‘People now see effective and efficient cleaning as being a necessary part of life both at home and in the workplace.

Levelevei Rankin: setting standards that make clients happy

‘As a result, we can command realistic pricing that allows our franchisees to provide a good service to their customers and pay staff well, thereby reducing staff turnover and the costs associated with that.

‘With our reputation and experience, Paramount is ideally situated to help new franchisees build strong new businesses, just as Bobby has, and to enhance the businesses of existing franchisees.’

New for young mums

Paramount still has many commercial cleaning opportunities available, especially in areas such as Hawkes Bay, Taranaki, Wairarapa, Bay of Plenty, Waikato, and the Far North. ‘And with demand higher than ever, Paramount Services is now launching a domestic cleaning division,’ says Murray.

‘We’ve designed a special franchise model for young mothers wanting to contribute to the family income while their children are at school. With our reputation, training and systems, we can help you run a parttime, daytime business with all the support of our award-winning brand.

‘If you’re keen to learn more about opportunities with Paramount, make contact and we’ll send details on how the Paramount system works,’ explains Murray, ‘along with a link to a tool that helps you judge for yourself whether a franchise might suit you. We’ll then follow up with a one-on-one interview and if we like each other, help you through the process of becoming a Paramount franchisee.’

Bobby Singh agrees that now is a good time to seize the opportunity with Paramount. ‘If you’re checking it out for the first time, ask about the level of training and assistance that comes with the business,’ he suggests. ‘And talk to some of the franchisees who’ve been there and done it – like me. We’ll tell you all about it.’

Meanwhile Bobby is looking to grow his own business even further. ‘That’s the beauty of the Paramount franchise – you might start with just a few clients, but you can grow as big as you want.’

Bobby Singh: ‘My business has grown every year’

Opportunity: Leisure & Education

VALUES & RETURNS

The value of Just Kidz turn-key approach to developing new Early Childhood Education centres was proved yet again when the newest opened in the Auckland suburb of Beachlands in late December 2022.

Part-owned by 26-year-old franchisee Freddy Jiang, the brand-new, purposebuilt, fully-equipped site is run by centre manager, Petronella (Petra) Shum and licensed for 86 children from weeks-old babies to 6-year-olds. By the beginning of March, 20 families had already registered. ‘That shows Beachlands parents are recognising Just Kidz is more than just another ECE provider, and it also says a lot about the drive and enthusiasm of Freddy and Petra,’ says Just Kidz operations manager, Vanessa Henry. ‘Our whole environment is based upon supporting and nurturing others to reach successful outcomes, both in quality education and care for our children and families, and business/career success for our staff and owners.’

The Just Kidz approach is based upon the world-renowned Italian education philosophy, Reggio Emilia, which values the child as central to their own learning – not simply an empty vessel waiting to be filled with knowledge.

‘We also incorporate the ideals of RIE, Resources for Infant Educarers, that encourages deep respect for infants, and we value and work within Te Whāriki, the national curriculum document for early childhood education,’ says Vanessa. ‘We set high standards, including better than the governmentrequired teacher-to-child ratios.

‘This approach, of not being just another pre-school, is a key driver of growth and success for Just Kidz,’ says Vanessa. ‘This is reinforced by strong wordof-mouth parent referrals across our six centres to date, along with positive feedback from both the Ministry of Education (MoE) and Education Review Office (ERO).’

Investor + manager = results

Despite Freddy coming from an engineering background in construction, he could see the great business opportunity that came with the Just Kidz Beachlands site. With the highly supportive model and in-depth training provided, he has been able to be actively involved, promoting and helping to develop the business through its early stages.

Vanessa explains, ‘Buying into the Just Kidz franchise is such a wonderful way to navigate the many compliance and safety factors within ECE, while regular communication and support from our office reassures business owners that they are meeting all regulations.

‘The model is created for business partners with an ECE background who may want to take on the centre manager role themselves, or for franchisees like Freddy who may have little or no experience but work closely with an experienced centre manager recruited through us.

We also recruit initial teaching staff, as well as provide intensive, ongoing support. Each active investor goes through due diligence and, if accepted, must complete our training programme so they have a total understanding of the business. We recommend having access to $750,000 of funding, much of which is invested in assets with cash flow and tax advantages.

‘It’s also possible to start with a lower investment in some cases. Just Kidz can help establish a payment plan in line with the strong profitability of the business.’

Freddy Jiang: ‘It’s working very well’

Opportunities for new centres

Freddy is keen to achieve 100 percent ownership as soon as possible and already has plans for buying a second Just Kidz where his partner, Sara, an early childhood teacher, would ideally be manager. Born in China, Freddy has lived both there and in New Zealand, including studying construction engineering at AUT.

‘It was through my father that I first found out about the Just Kidz opportunity,’ says Freddy. ‘The more I found out, the more interested I got. As an ECE provider, Just Kidz is head and shoulders above the others, as the feedback shows. And the investment model with a centre manager is very attractive. It’s working very well.’

Vanessa says that Just Kidz is now looking for more franchisees to partner in new centres throughout New Zealand, particularly cities such as Wellington, Christchurch and Dunedin. ‘We find the right site, design the centre, negotiate the lease, oversee the interior and playground fit-out with all the right resources and, of course, find the manager and staff for you.

‘Contact me now to find out more about the Just Kidz opportunity.’

Want

Why

Just Kidz has been operating for

more than 20 yrs, franchised 5 yrs.

Excellent support with regular field visits and ongoing training in quality

Just Kidz systems and current NZ practice, curriculum and regulations.

Just Kidz has excellent word of mouth referrals.

Modern, beautiful, purpose-built buildings and playgrounds fully fitted out.

Initial staff hired.

In-depth training and marketing support.

Payment plans established with you.

Ongoing government funding subsidies.

Rent free periods.

Reasonable royalty fees.

Just Kidz is a quality opportunity for active investors and people passionate about children

ONLINE ADVICE ABOUT

Franchise New Zealand’s website has lots of free advice for franchise buyers

If you’re looking for more information about franchising, there’s only one place to start – www.franchise.co.nz. The website features many of the most popular articles from Franchise New Zealand magazine and is designed to help business buyers make the right decision. There’s also help for anyone looking to franchise their own business; information for existing franchisees and franchisors; and news about the franchise market and legislative climate in New Zealand and overseas.

Best of all, there’s an enlarged and fully-searchable version of the Westpac Directory of Franchising (see page 76), with more detail on many of the 275 franchises featured and the specialist accountants, consultants, finance providers, lawyers, and others who can help.

Searchable Directory

If you’re looking for businesses for sale, click on Directory and then use the drop-down list to search for opportunities by:

• Company Name

• Price Range

• Industry

To find advice or information from our many local and international expert contributors, you can search for advice on how to:

• Buy a Franchise

• Franchise your Business

• Run a Franchise Outlet

• Manage a Franchise System

• Research Franchising in NZ

• Find News & Events

Commercial buildings and business premises need regular exterior maintenance. Crest PropertyCare franchisees provide profitable services like Pure Water Window Cleaning, grounds maintenance and exterior cleaning.

Our franchisees receive a high level of operational and administration support. We invoice the customers, remit contract payments twice per month, and look after your accounts and GST returns, allowing you to focus on growing your own successful business.

What advice will you find?

To get an idea of the type of advice you’ll find on the site, here are links to some of our most popular articles. In each case, enter www.franchise. co.nz/article/ then the number shown – eg. www.franchise.co.nz/ article/81

To start your journey, have a look at these three articles www.franchise.co.nz/article/

If buying a franchise would help you achieve your business, financial and personal goals, then you first have to work out what type of business you want to own.

Be aware that owning your own business is very different from working for someone else, and may mean learning more skills. You might be great at sales, but what do you know of business management, for example? A franchise is a good choice, because it will give you training, support and systems in those areas.

If you’re going for a complete change, you might want to follow a passion (eg. for food, fitness or education), or you might be motivated by a change of lifestyle (eg. getting out from behind a desk to mow lawns, or moving from the city to somewhere with less traffic and lower house prices). You might even be seeking a semi-passive income.

Here are some articles to help you think about what might suit you and help you work your way through the maze:

www.franchise.co.nz/article/

What can you afford?

Franchises are available in a huge range of industries, and vary in cost accordingly. What matters is not how much you have to spend, but how much debt your new business can afford to service. Don’t try to borrow more than your business can repay – lack of capital kills a lot of businesses.

Decide what your own goals are. If you operate them properly, most franchises should provide a fair wage for the hours you put in, a return on investment and a potential capital gain when you sell them. What do you realistically want to achieve in each of these areas? Can your chosen franchise deliver it?

You can only answer all these questions by careful research, and an honest evaluation of your own situation. Here’s how to start:

www.franchise.co.nz/article/

Will it make money?

Although there are many reasons for wanting to buy your own business, one thing is certain: no-one goes into business to lose money. This means looking at lots of figures, which is why you need to invest in a professional advisor to analyse the figures, minimise the risk, look after you, educate you and, eventually, to help you set up the business in the best possible way to suit your individual circumstances. These articles will help.

www.franchise.co.nz/article/

Finally

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This is just a fraction of the advice available on the website to help get you started on your researches. To read more, and access all the above live links in one place, go to www.franchise.co.nz/article/2903.

Enjoy the exclusive advantages of being part of one of New Zealand’s most trusted and adored brands.

Bring out the best in yourself and others.

Our expert, natonwide support and award winning systems mean you don’t need hairdressing experience to succeed.

For more informaton contact franchising@rodneywayne.co.nz

truly green OUTLOOK

At SmartGrass, they believe that success comes from having a clear and meaningful purpose. ‘That’s core in everything we do, from the design of our products through to the amazing landscapes we create with our clients and the journey in between,’ says managing director Jack Kennedy.

‘It’s demonstrated in our work with homeowners, schools, gyms, commercial developers and landscapers, as well as regional and national government agencies. Our clients get it and love us for it, and that continues to generate significant growth in all sectors. And it’s that purpose and growth which is at the heart of the SmartGrass franchise opportunity.’

Positive environmental impact

Jack says helping our communities look after their environment is a big motivator for clients and a major business driver for the franchise, which specialises in the supply and installation of artificial grass.

‘Water is a massive resource issue, whether it’s too little or too much, and SmartGrass solutions really assist here. It doesn’t require water in dry periods, but enables water to fully permeate in wet periods. In doing so, it reduces potentially harmful run-off. Water challenges aren’t about to go away, but SmartGrass can and really is helping in this critical area.’

Another significant positive impact Jack notes is the reduction in the use of chemicals in the form of fertilisers and sprays. ‘Aside from the ongoing costs in manufacture and transport, these are often poorly or overapplied by users and really harm our environment and waterways.

‘With SmartGrass, mowing also becomes redundant, with less power usage and less green waste needing to be managed on site or collected by big trucks. The overall impact reduction is significant and the icing on the cake is SmartGrass’s NZ-exclusive Earth Series product which is 100 percent recyclable at end of life – along with being one of the longestlasting artificial landscape grasses in the world.’

Market demand continues

With clients confident that SmartGrass has market-leading solutions, as well as the experience to get the job done, there’s growing demand all around NZ – and that’s where the franchise opportunity comes in.

‘To get good results and a long-lasting surface worthy of the investment, preparation and installation of SmartGrass products is a job best performed by a properly-trained professional. The role of our franchisees is to develop sales and manage a team of employees or contractors who carry out the installations to our high standards,’ explains Jack.

‘This is a great cashflow business that, from our experience, can generate significant returns early on,’ says Jack. ‘We expect franchisees to be comfortably profitable in year one and scale this significantly after two years.

‘This is achieved via a three-pronged revenue channel: a margin on product supplied; the installation fee; and regular maintenance which

provides an ongoing income stream. Another reason the franchise can be so profitable is its simplicity. There’s good cashflow and relatively low overheads, with no requirement for leased premises and very little capital tied up in stock. The franchise requires an investment of around $200,000, which includes a vehicle and all machinery needed to get started. Finance options are available through Westpac.’

For sales and business people

So who would make an ideal SmartGrass franchisee?

Jack says he or she is likely to be a sales and/or business-oriented professional who can turn leads into business and is highly motivated, a great relationship builder and well-connected in their community. He emphasises that this business is no side-hustle.

‘It’s not a part-time business or something that can be initially run alongside other ventures. Franchisees need to focus on creating and converting proposals as well as coordinating their installation teams, and only pick up the tools if really needed.

‘We provide full training to make sure you get off to a flying start, so you don’t need previous experience in the installation of artificial grass or general landscaping. However, a love of DIY and a good practical problem-solving ability is essential for learning the SmartGrass system.’ The franchise package includes:

• Ongoing lead generation

• Commercial client relationship management

• Local and national marketing campaigns

• Social media, website and video content created and handled for you

• National business development, sales and trade exhibitions.

The green light

‘After six years, we have a lot of experience in this business and are confident that SmartGrass has what it takes to deliver for both clients and franchisees,’ Jack says. ‘Anyone who follows our system can do really well.

Advertiser Info

SmartGrass

‘Contact me today to find out more and we’ll send you a full disclosure document for you to review with your advisors. If our “Why” aligns with your “What”, we’ll arrange launch marketing in your area while you are being trained, then your new business will be up and running – and generating revenue – from Day One.

‘We have so much business coming in, and customer feedback has been so positive, that we know there is a bright future ahead. Call me now.’

www.smartgrass.co.nz

Contact Jack Kennedy

P 0800 TURF NZ

M 027 822 9006

jack@smartgrass.co.nz

The SmartGrass franchise is passionate about creating amazing places and caring for our environment

SmartGrass enabled this park pool area to stay clean, green and lush over the summer, delighting the public and generating even more business

With almost 600 different franchise brands to choose from in New Zealand, there are some opportunities available to anyone who is looking to go into business for themselves – but not by themselves.

Just because a franchise is well-established or well-known, though, doesn’t mean that it will be right for you – and it doesn’t mean that every new outlet will be profitable, either. That’s why, if you’re looking at buying any business, you need to take good professional advice so that you can be sure you’ve made the right decision and free your brain up to focus on growing your new business.

Strangely, many people don’t bother to do that when it comes to franchises. Why not? Well, having talked to many new franchisees, it seems that too many people:

• Assume that everything will be okay because the franchise has a good reputation;

• Think that by not using a lawyer or accountant they will save money on professional fees that they need to invest in the business; or

• Use an inappropriate advisor – the family lawyer, for example – who might be great at conveyancing but have little experience and few contacts in the franchise world.

Alas, the people who take these appealing shortcuts often learn an important lesson the hard way. Whether you’re investing $5,000 or $500,000, it pays to take proper advice to ensure that you know what you are getting into and that your chosen business can meet your needs.

Spend and save

For the franchise buyer, then, it’s vital to check out the differences between franchises to make sure that any opportunity really is as good as it seems to be. Here’s why it’s worth spending a little time and money on advisors:

Buying a franchise can be a great way to get into your own business – but success isn’t guaranteed. That’s why using the right advisors is essential

DON’T ASSUME

she’ll be right!

1. You’ll save time (and maybe even money).

Choose experienced advisors and they’ll probably have come across the franchise system you’re investigating before. Even if it’s new to New Zealand, the chances are they will be able to find out more about it from contacts overseas than you will. And if it’s a brand new system, they will at least know the characteristics to look for in a successful franchise.

They might cost more per hour than non-specialist advisors, but they will give you better advice and take less time about it.

2. You’re less likely to make mistakes.

You might not know what rents or margins are normal in a certain industry, but your advisors should. You might not know whether a sub-lease arrangement leaves you exposed, but your lawyer will.

You might be new to business borrowing, but your banker will know what is and isn’t possible – and the fact that you are buying a franchise may mean special terms are available if you talk to the right people.

3. You’ll know what to expect.

One of the most important tasks of your advisors is to ensure that you know exactly what the franchise entails and that you know what will be expected of you as a franchisee.

That will not only help you to make the right choice of business but also enable you to settle into your new role faster.

4. You’ll be confident your chosen franchise will meet your needs. Whether your reasons for buying a franchise are short-term growth, long-term security or lifestyle, involving advisors and

STIHL SHOP is a nationwide network of locally owned stores offering a wide range of high quality garden equipment, supported by fully equipped service workshops.

JOIN THE LEADER IN GARDEN EQUIPMENT RETAILING

• Join a network of retailers committed to customer service excellence

supported

team

Buying a Franchise

briefing them honestly about your goals will help ascertain whether the business will really meet your needs.

5. You’ll get impartial advice.

If you find a business you love, it’s easy to focus on the positives and miss some of the warning signs. For all sorts of reasons, a good franchise may not actually be the right one for you, but franchisors and business brokers may not know that. Your own advisors can help you see beyond the dream to the reality, and help you make the right decision.

What advice do you need?

The three key people that you need to speak to are a lawyer, accountant and, if you are going to require finance, a banker.

When you buy a franchise, you are getting into a legal arrangement that involves rights and obligations on both the franchisee and the franchisor. It is therefore extremely important that you should have a clear understanding of what those will actually mean to you in practice.

franchise proposition from an accountant experienced in franchising.’

As for franchise bankers, the good news about them is that they have a huge amount of expertise and knowledge about different franchise systems but they aren’t actually going to charge you anything for sharing it. It’s therefore a simple matter to talk to them fairly early in your researches to find out what they know and start to build a relationship with them.

How do you choose the right advisor?

So how do you ensure that your chosen advisors are the right ones for you? Here are some tips.

1. Don’t assume that your normal family lawyer or accountant has the skills to analyse a franchise opportunity. Franchising is a specialist field and it pays to use specialists. They may charge more per hour but they will know what is and isn’t acceptable, they will have contacts in the field and they may well take less time than someone inexperienced in franchising.

2. Look for advisors who are demonstrably focusing on the world of franchising already. The Directory on page 86 of this magazine is a good place to start, as it lists both members of the Franchise Association and others with specialist knowledge in this area. It separates out:

• Accountants

• Banks

• Lawyers

• Franchise Consultants

• Service Providers

3. Choose people who are able to demonstrate knowledge and experience of franchise systems in the field in which your chosen business is operating. Don’t be afraid to ask for a summary of their relevant experience.

4. Check the reputation of each advisor with your other advisors - some may work particularly closely with other specialists and be able to recommend someone.

5. Make sure that you choose people with whom you can build a good rapport. You need to be honest with your advisors and trust that they will respect your confidences and give you good advice. In all likelihood, you will be working with them not just while you are buying your franchise but as your business grows, too.

6. Be prepared to pay reasonable fees for professional advice. It’s not worth saving a few dollars at the outset and getting poor advice. Most advisors charge on an hourly basis, so find out what this is and get a written estimate of the likely number of hours involved. Ask to be kept informed in writing of any extra hours incurred.

7. Accept that the advisor’s job is to advise. The decision whether to proceed or not is just the first of many decisions you will need to make in running your own business, so be prepared to take responsibility for your own future.

Finally

About the Author

Lord is editor of Franchise New Zealand media and has worked in franchising for 40 years.

With the right team of advisors behind you, buying a franchise can be much less stressful – and less risky – than trying to do everything on your own. The trick is to choose the right advisors in the first place, be honest with them and listen carefully to what they have to say. At the end of the day, the decision whether to proceed or not will be yours and yours alone, but if you have listened to the voices of experience then you stand the best possible chance of making the right decision for your future security and success.

Simon

Over 275 different franchises

There are exciting new franchise options available throughout the North Island. A unique opportunity exists for the right person to work their way into a franchise ownership role.

Be in control of your own future, with the ultimate in career fulfilment.

North Island-wide chain of physiotherapy and rehabilitation clinics, offering multi-disciplinary services of physiotherapy, occupational therapy, pilates and exercise rehabilitation, ACC rehabilitation contracts, health and wellness services. Operating since 1990. Previous health services experience preferred.

Ali Jamb Home & Building $20,000+ Ali Jamb installs powder-coated aluminium garage door jambs. Greenfield opportunities for enthusiastic franchisees, with full training available. Robust and cost-effective design is increasing demand for supply to building projects across New Zealand. Profitable business model refined over 20 years. Exclusive territories available.

Altitude Pole offers pole dance and fitness-based classes at professional, boutique studios around the country. Creating communities, confidence and strength.

Anchor Franchise 60 Food & Beverage $750,000$1.2m

Market leader in the sales and distribution of milk products and beverages throughout New Zealand including Anchor, Primo, Zing, Mammoth Supply Co, Fresh N Fruity, De Winkel, Country Goodness, Mainland, Kapiti, CalciYum and Eon. National franchise structure operating since 1992 offering exclusive territories.

Leading 24/7 fitness franchise. Proven systems, voted one of the top global franchises.

formerly Fastway Couriers, is an award-winning franchise system that provides local and national courier and freight services at competitive prices. Over 35 years’ experience, multiple industry awards and franchisees across New Zealand, Aramex is one of New Zealand’s most successful and trusted freight companies.

for smarter security. Retail and mobile locksmith and alarm specialists.

provides industry training on forklifts, wheels, tracks, rollers, EWP and dangerous goods. Make a difference by creating “A Safe Working Environment For All – ASWEFA!” The perfect franchise opportunity for a team leader, supervisor, tradie coming off the tools, or someone with HR experience.

home, commercial and lawn service franchise system.

Zealand franchise Autoblast has perfected a new method for vehicle underbody rust removal and rust prevention. We are seeking partners who firstly believe in customer service excellence, and who have an appreciation for all things automotive and their aesthetics.

50 50 Shannon Davidson E anchorfranchise@fonterra.com W anchor.co.nz

Directory of Franchising

Franchise and Business Opportunities 76 Specialist Advisors 86 Other Services 89

Looking for a business opportunity but don’t know where to start?

Choose by industry

We have divided all the opportunities into ten main industries. Just look down the third column to select the type of business you are interested in. You can also search the Directory by industry online at www.franchise.co.nz

Choose by investment

The ‘Investment’ figures quoted in the fourth column are for guidance only and may not include GST, equipment, working capital or other items unless specifically included. You should confirm such items direct with the franchise concerned.

Choose by type

The description contains a brief description of the franchise and may include information on the type of people the opportunity is best suited to. More information can be found online at www.franchise.co.nz

company page number industry investment from description

Beds R Us Retail P.O.A. Join NZ’s largest independent bedding group. Franchise opportunities available with full support.

BiForm

Note

Listing information is supplied by that particular entity. The symbol in the FANZ column denotes a member of the Franchise Association. You are advised to confirm the accuracy of the listing and the membership status of any entity. Neither the sponsors of this Directory nor FANZ nor the publisher accept liability for any omissions or errors.

46 46 P 0-9-972 3022

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BiForm Solid Composite Decking offers an environmentally friendly, low maintenance, alternative to traditional hardwood timber. Strong presence in the industry in a market with growth potential. Offers composite decking, screening, and flooring solutions. Operating successfully since 2004. Full training provided.

hit eatery is seeking enthusiastic, smart people to take ‘slow food, served fast’ to the rest of New Zealand. Delicious food, a unique model, tight systems and continual support from the people who built the business. Every town needs a Big Fig – make it happen!

$450,000 Bird on A Wire strives to be NZ’s number one local chicken restaurant where good vibes are free range only! Our Bird HQ team drives this culture by ensuring all partners and team members are trained and ready to provide the best customer service possible.

4 4 Tau Aupa’au M 021 640 006 E tau@biform.co.nz W biform.co.nz

1 1 Karen Lahood P 021 902 6593 E franchise@bigfig.co.nz W bigfig.co.nz

7 7 Brad Jacobs P 027 263 333 E brad@birdonawire.co.nz W birdonawire.co.nz

18 18 Tony Yin M 022 630 6622 E tony.yin@blackandwhitecoffee.co.nz W blackandwhitecoffee.co.nz BoatsmartHQ

Join the third wave of coffee today. Exciting opportunities to join NZ’s rapidly growing first micro-roasting coffee company franchise. Offering turn-key cafés with a competitive operational model. Full training and support provided. We have brought the independent coffee shop to the masses.

Unique franchise opportunity to manage a fleet of marina or drystack-based boats.

Bodypulse’s unique selling proposition offers a revolutionary fitness concept combining state of the art wireless Electro Muscle Stimulation (EMS) technology and systemised coach-led workouts at our private boutique studios. Thousands of EMS studios have become successful and now the concept has reached New Zealand.

2 2 Mitchell Wilson M 021 648 642 E m.wilson@bodypulse.co.nz W bodypulse.co.nz Breakers

Relaxed, NZ beach-themed family restaurants. Fast and affordable dining since 1997.

$75,000 Be part of an established and globally awarded children’s education franchise. Over 10 years, Bricks 4 Kidz has developed a unique and inspiring business model. Make an impact on our future generations and receive the support of training, resources and expertise. Come build with us!

Brumby’s Bakery Food & Beverage $300,000$450,000

Brumby’s has been part of the New Zealand bakery market since 1995, serving local communities wholesome, natural baked goods. Brumby’s artisan approach to baking utilises only natural ingredients, with no preservatives or additives, and products handmade fresh from scratch every day to our exclusive recipes.

Bun Mee Kiwi 51 Food & Beverage $150,000$250,000 Turn your passion for delicious healthy food into your own business with Bun Mee Kiwi. Capitalise on this highly popular Vietnamese sandwich eatery with a Kiwi twist. Established, proven systems with a committed, passionate franchisor supporting you. Life’s too short for S#!t food.

BurgerFuel Food & Beverage $500,000 BurgerFuel is a leader in the gourmet burger market, dedicated to serving high quality burgers in an atmosphere as charged as the food. Combined with fun and irreverent marketing campaigns BurgerFuel creates the perfect environment for franchisees to grow and enjoy their business.

Burger Wisconsin Food & Beverage $150,000$250,000 At Burger Wisconsin, it’s always been about the food. Now is an exciting time to join us, with new sites planned throughout New Zealand and an existing store refresh programme underway. It’s a gourmet opportunity for operators with good taste.

Business Consulting New Zealand Business & Commercial $68,250 Business Consulting New Zealand is seeking experienced and committed professionals who want to help business owners succeed. Highly profitable and flexible lifestyle opportunity with all training, systems and Head Office support provided. Enquire today to find out more about this opportunity.

Caci Health & Beauty $150,000$300,000 At Caci we love what we do! Helping New Zealanders with what we call ‘skin confidence’. Now is your

P

0537

8 750 Lorraine Yu P 0800 LEGO4K M 021 222 6033 E lyu@bricks4kidz.com W bricks4kidz.co.nz

6 250+ Alistair Boyd P 022 165 6649 E alistair@ccbs.co.nz W brumbys.co.nz

1 1 Mark Isaaka M 027 265 8444

E mark@bunmeekiwi.co.nz

W bunmeekiwi.co.nz

56 79 Murdoch Ball M 021 954 632

E franchising@burgerfuelgroup.com

W burgerfuel.com/nz

24 24 Brittany Jackson

P 0-9-973 4559

E franchising@mrhltd.com

W mariposa.nz

8 8 Julius Bloem P 027 746 0073

E julius@businessconsultingnz.co.nz

W businessconsultingnz.co.nz

Franchise and Business Opportunities

Carpet Court Retail $250,000 New Zealand’s largest flooring retailer. The size of the Carpet Court group means that Carpet Court franchise partners benefit from the advantages of scale when it comes to all aspects of business, including buying power, marketing, product range and other business support services.

Cartridge World Computer $100,000$125,000

Cash Converters Retail

The largest, most experienced printer cartridge refilling company worldwide. Franchisees operate from retail premises, refilling cartridges, retailing new cartridges and other printer consumables. Easily learned, full training provided. Includes stock, plant, training and licence fee. We stand behind our product with a 100% satisfaction guarantee.

$650,000 Looking for an exceptional return on your investment? We’re New Zealand’s favourite place to buy and sell, the world’s largest second-hand dealer and market leader in short term credit services. With more than 700 stores internationally you’ll be buying a tried and tested, well respected brand.

Central Landscape & Garden Supplies Home & Building P.O.A. Landscape and garden supply yards providing bulk and bagged products. Pick-up and deliveries. Will suit hands-on owner operators with a passion for excellent customer service who take pride in customer satisfaction. Well-established Warkworth franchise currently for sale – enquiries welcome.

Cleancorp 14 Business & Commercial

Clean Planet Business & Commercial

$22,000+

Cleancorp offers commercial cleaning franchises. Seeking committed people to deliver great service. We source and acquire commercial cleaning contracts for our franchisees who are provided with full training, ensuring the same professional standards are offered to all customers.

$20,000 Clean Planet, environmentally better for you and your customers. No selling, no invoicing, we do it for you. Well-established and growing strongly throughout regional New Zealand. Now looking for master licensees and franchisees. Work for yourself with the support of our proven processes and systems.

Home and commercial cleaning – no job is too big or too small.

Cleantastic Commercial Cleaning 59 Business & Commercial $14,600 An established, award-winning franchise with nearly 300 franchisees operating throughout NZ. This cleaning franchise offers quality cleaning at competitive prices. Franchisees utilise the well-developed systems and technical expertise to become successful business owners. Comprehensive training, equipment, uniforms and business cards are provided.

Cobb & Co. Food & Beverage $500,000 Welcome back to Cobb & Co., New Zealand’s original restaurant chain. With unbeatable brand recognition, enviable buying power, proven profitability and on-going support from Cobb Group, it’s not hard to see why owning a Cobb & Co. is a special opportunity.

Coffee Culture Food & Beverage $350,000+ Coffee Culture is the South Island’s leading boutique group of coffee shops. We’re currently expanding and need passionate coffee lovers to join us. With over 22 years’ experience, we offer support and training that’s second to none.

Coffee News NZ 56 Business & Commercial $8,000 Local publication Coffee News has been a staple in NZ hospitality venues for over 20 years. It’s perfect for a small business (or a starting real estate agent) to create positive cashflow in challenging market conditions. Average operator works one day per week.

Coffix Food & Beverage $100,000 Offers exceptional Fairtrade coffee at a fair price. Ethical and environmentally responsible company.

Colourplus Retail $200,000 At Colourplus, we’ve got your style. Your local store offers all the inspiration, expertise and advice you need to turn your decorating dreams into reality. With 30 stores nationwide, offering a range of top quality paint, wallpaper, curtains, blinds, giftware and decorating accessories.

Columbus Coffee 10 Food & Beverage $250,000$450,000 NZ’s premium café franchise. Highly recognised and trusted brand offering customers exceptional coffee and chef-prepared food. Supreme Franchisee of the Year and Food and Beverage Franchise System of the Year 2015/16. Suit owners with passion for coffee, food and the value of customer relationships.

ownership plus support from an iconic Kiwi franchise company distributing

Cookright, the kitchen hero, saving kitchens time and money. Deepfryer, overhead filter and hood cleaning. Cooking oil filtering. Oil and kitchen consumables product sales. Cookright has significant income potential with minimal competition for motivated, hard-working, practical operators who can sell and are well organised.

Cabs is New Zealand’s most professionally driven cab service.

Get your work-life balance right with a CrestClean cleaning franchise. If you are looking for a simple business with low risk and a high profit margin, a CrestClean franchise ticks every box. Winners of the 2021 Westpac Supreme Franchise System of the Year award.

$15,000 Grow a profitable business and enjoy a flexible workday with a Crest PropertyCare franchise. Working side by side with CrestClean teams to provide quality outdoor maintenance services through our franchisee network, Crest PropertyCare offers a business opportunity with the flexibility to suit your lifestyle.

Crewcut Home Services $16,000 Crewcut is a lawn and garden maintenance franchise with businesses for sale. For over 26 years we’ve had operators providing lawn mowing, hedge trimming, section clearing, and gardening to Kiwis all across New Zealand. Buy a business with support, strong branding, and values.

Cutshop Home & Building $450,000 Own and manage a Cutshop programming and production team, producing high quality cabinetry for kitchens, wardrobes, garage shelves and more. Cutshop franchisees provide bespoke products in a vibrant new-build and renovation sector where existing trade production can’t keep up with the growing market.

57 57 Colin Jones M 027 453 4876 E support.office@carpetcourt.nz W carpetcourt.nz/careers

43 1650 Craig Watson P 0061 1300 767 223 E cw@cartridgeworld.com.au W cartridgeworld.co.nz

28 700+ Colin Mahoney P 0-9-281 7334

E enquiries@cashconverters.co.nz

W cashconverters.co.nz

9 9 Mike Armour P 0-9-273 5352 M 0274 506 639

E mike@centrallandscapes.co.nz

20 20 Sacha Coburn

P 0-7-855 3996 M 027 475 0390

E sacha@coffeeculture.co.nz

W coffeeculture.co.nz

22 580 Rudy Kokx

P 0800 22 77 82

M 021 421 346

E rudy@coffeenews.co.nz

W coffeenews.co.nz/buy-a-franchise.php

15 15 M 021 287 2220

29

P 0-9-818 9215 E info@colourplus.co.nz W colourplus.co.nz

4 4 André Hofer

Design Builders Home & Building $160,000 Thriving, established business with an outstanding reputation for our quality of work. 10

Diamond Fusion Home & Building $50,000 Seeking motivated people with great sales ability and focus. Full training provided.

Donut King Food & Beverage $280,000

DrainPro Home & Building $40,000

Dream Doors Home & Building $75,000

Driving Miss Daisy New Zealand Home Services $40,000$45,000

Ecomist 24 Home & Commercial $100,000$750,000

Donut King is a speciality donut and coffee chain with over 300 stores throughout NZ and Australia. Seeking fun franchisees with a customer focus to serve our famous, fresh donuts daily. Proven business models and support systems to teach you everything you need to know.

DrainPro specialise in residential new builds, tank installations and light commercial works, with franchise opportunities available nationwide. Whether you’re an existing business struggling or a tradesman looking to go out on his own, Drainpro have the experience to help you develop a successful business.

Design, manufacture and supply of made-to-measure kitchens, bathrooms and bedrooms for retail and trade customers. Seeking hard-working, sales-driven, computer literate go-getters who are willing to follow a proven dynamic international business model.

Driving Miss Daisy is NZ’s No.1 companion driving service. Currently we have 80 territories in operation. If you are interested in becoming the next Daisy in this growth industry, call us today. Our NZ franchises are an extremely affordable small business option.

Ecomist is an exciting business opportunity, based on both website and face-to-face sales of automated insect control and odour control fragrancing systems and products, to both commercial and residential customers; accompanied by the provision of residential and commercial pest control services.

8

8

10

5 300+

P 0-9-666 0632 M 021 879 413

E andre.hofer@cutshop.com

W cutshop.com

P 0800 456 456

M 021 234 4170

Bram Milne-Rodrigues

M 022 424 6528

E bram@donutking.co.nz

W donutking.co.nz

4 4 Nathan Williamson

M 021 217 1616

P 0-3-342 1278

E nathan@drainpro.co.nz

W drainpro.co.nz

11 100+ Derek Lilly

M 027 213 5133

E del@dreamdoors.co.nz

W dreamdoors.co.nz

80 117 Jack Harper/Ange Mill

P 021 503 325

E ange@drivingmissdaisy.co.nz

W drivingmissdaisy.co.nz

20 56 Ian Robertson M 027 433 4513

E ian.robertson@ecomist.co.nz

W ecomist.co.nz

EduExperts Education $100,000 EduExperts offers a variety of after school tutoring programmes for primary, intermediate and high school children of all nationalities, aimed at helping them excel in their education and overcome any learning difficulties they may have.

Electrify.nz Retail $25,000 Seeking people with passion and ambition to be a specialist e-bike retailer

EmbroidMe Business & Commercial $150,000 EmbroidMe is New Zealand’s largest uniform and promotional products business. EmbroidMe focuses on the business-to-business market providing apparel for uniforms and branding them. Low stock, low staffing, high repeat, high margin, Monday to Friday business. We’re looking for business-minded people, no industry experience required.

Epiphany Café Food & Beverage $200,000 Epiphany Café are seeking people who are committed to excellence. Our point of difference is unique products such as homemade artisan donuts. This is more than just a business venture, we work hard, enjoy what we’re doing, and know how to have fun while achieving our goals.

Esquires Food & Beverage $300,000-

At Esquires Café our franchise partners tailor their food to the local market from our extensive menu library. We don’t dictate the menu, we allow the freedom for you to be a true entrepreneur while ensuring you have comprehensive support from our team.

Multi award-winning Exceed specialising in fixing windows and doors, enhancing and extending the life of joinery. We are an innovative national franchise of over 29 years with welldesigned systems to help support your journey with us.

thousands

mobile franchise - experts in leather, vinyl and plastic restoration.

is New Zealand’s only hybrid real estate marketing company, replacing what agents do with our proven technology and marketing services. We are looking for like-minded people to grow the brand throughout New Zealand. Full training and ongoing support. No real estate licence needed.

of everything from building repairs to renovation and additions.

shops. Franchisees come from within the industry, such as carpet and vinyl installers, with others from widely varying backgrounds. Full training, excellent systems and great support from a wide supplier base. Centralised systems create efficiencies and, as a result, a profitable business model.

Footloose Shoes Retail $150,000 Need a passion for fashion and the desire to own your own business.

Freedom Companion Driving Services Home Services $32,000 Freedom Companion Driving Services provides transport services for those requiring safe, caring transport. With the population of New Zealanders aged 65+ projected to double over the next 25 years there has never been a better time to own a Freedom Drivers franchise.

12 14 Jenny Jin P 0-9-520 1800 M 021 229 5378 E HQ@eduexperts.co.nz W eduexperts.co.nz

11 11 M 021 644 405

15 350 Sarah Archibald P 0-9-577 4223 M 021 479 123 E fnz@businessfranchise.co.nz W businessfranchise.co.nz

28 28 Jeths Lacson M 021 337 329 E admin@epiphanycafe.co.nz W epiphanycafe.co.nz

Wieners

We build houses for clients all over New Zealand for a fixed price and on a time guarantee.

boasts over 1,200 locations with over 1,000,000 people p/w past our screens.

21 21 Jeremy Yeoman M 022 602 8482 E opportunities@flooringdesign.co.nz W flooringdesign.co.nz

19 19 M 021 934 080

0800 333 499

franchises@freedomdrivers.co.nz

freedomdrivers.co.nz

33

David Callaghan M 027 494 8361 E david.callaghan@woolworthsnz.co.nz W freshchoice.co.nz

Howard

Jean’s

NZ

Guthrie Bowron Retail $250,000 The number one home decorating franchise in New Zealand, specialising in paint, wallpaper, custom-made curtains and blinds, flooring and decorating tools. Franchisees benefit from an established name, a strong support system, central purchasing negotiation and active national advertising campaigns.

Habitual Fix Food & Beverage $185,000 Our purpose is to turn the world into fresh and healthy food fanatics.

Harrisons Carpet & Flooring Home & Building $150,000 Harrisons Carpet & Flooring is one of the most successful franchise businesses in New Zealand and is experiencing very high customer demand across the country. We are looking for passionate people to join our nationwide Carpet & Flooring franchise network.

Curtains & Blinds Home & Building $45,000$70,000 Love

fashion, interior design, and have a flair for sales? Own your own business doing what you love, supported by the most trusted franchise network. We are looking for passionate people to join our 20 strong nationwide Curtains & Blinds franchise

45 45 Alan Heatlie P 0-9-306 1040 E alan@guthriebowron.co.nz W guthriebowron.co.nz

10 10 M 027 442 9531

50 50 Dan Harrison P 0800 102 004 M 021 242 4131

E danh@hah.co.nz

W harrisons.nz/join-us

Hell Food & Beverage $200,000

Helloworld Travel 61 Retail $100,000

Heritage Homes 9 Home & Building $25,000$50,000

Opportunities

A brand with attitude that cannot be missed. Our damned fine gourmet menu, coupled with sophisticated systems and support, make this a wicked opportunity. Hell is looking for new franchisees with a passion for our brand and a willingness to learn. Opportunities available nationwide.

Join helloworld Travel, one of New Zealand’s premier retail brands offering fully franchised stores around the country. Combining national and local marketing support, helloworld Travel offers our franchisees ‘best in market returns’ and the opportunity to share our passion for travel with your community.

Heritage Homes are NZ’s leading master builders specialising in brand new character homes built for the future and inspired by the past. We need passionate people with good business sense, goal driven, who have good communication skills and are ambitious. Building background not essential.

High Performance Training and Coaching Business & Commercial $60,000 Business training and coaching franchise opportunity, delivering the well-known High Performance programme.

Highmark Homes Home & Building $35,000 Benefit from proven systems and central office support, including designers and quantity surveyors.

Hire A Hubby Home & Building $32,000 New Zealand’s first choice for professional home maintenance projects, building and renovation services. Kiwi-owned Hire A Hubby has built a reputation for being the go-to solution for jobs around the home. Customers trust us with full project management. We offer customer payment convenience with Afterpay.

Hire A Maid Home Services $15,000$35,000 Hire a Maid is an experienced, fully supported and professional provider of high quality home and commercial cleaning services. We are seeking motivated franchise owners who have the drive to provide exceptional services to their clients and be your own boss.

Hudsons 18 Food & Beverage $250,000$400,000

Hudsons has been delivering coffee excellence for over 20 years with cafes across Australia, Singapore and New Zealand. We are seeking passionate franchisees to help us spread our love of coffee nationwide. Training is provided. If you are obsessed about coffee, please contact us.

W hire-a-maid.co.nz/register

3 100+ Khushboo Badiyani M 021 786 685 E khushboo.badiyani@hudsonscoffee.co.nz W hudsonscoffee.co.nz

Humitech Business & Commercial $90,825 Simple, effective panels to reduce commercial chilling costs and improve performance. 8 8 P 0800 486 434

InXpress 22 Business & Commercial $30,000 Global logistics and freight sales consulting franchise. InXpress allows you to build a successful and profitable business with the security of one of the world’s largest franchisors of global courier services. Proven business model and training provided. Low risk with a strong return on investment.

Jamaica Blue 91 Food & Beverage $280,000$450,000 Bring your enthusiasm, ambition and passion to deliver an exceptional customer experience. Enjoy world-class training with ongoing support and together you have the ingredients of a successful Jamaica Blue franchise partnership. Opportunities nationwide with a brand you are proud to call your own.

Jani-King 23 Business & Commercial $22,000

Jesters Pies Food & Beverage $200,000$280,000+

Jani-King is known as the world’s number one commercial cleaning franchise company providing full operational sales administration support for franchisees. There has only been one name to turn to for quality and value in the commercial cleaning services - Jani-King, the king of clean.

Jesters Pies are offering new store opportunities on a turnkey basis. We will provide training, ongoing support and the tools required for you to maximise your investment. Seeking passionate franchise partners prepared to work in the business who are committed to excellent customer service.

Jet Cleaning Services Business & Commercial $50,000$120,000 Jet Cleaning Services is one of New Zealand’s leading cleaning companies with specialist commercial cleaning crews throughout the country. Jet Cleaning is looking for highly motivated franchise teams to operate at some of our prestigious customers’ sites across greater Auckland, Hamilton, Wellington and Queenstown.

Jim’s Mowing Home Services $20,000 Mowing/gardening franchise opportunity. Want more flexibility to achieve a better work life balance? Seeking self-motivated people who wish to succeed in running their own business. We provide help and assistance every step of the way to help them build successful businesses.

Jim’s Test & Tag / Jim’s Fire Safety 57 Business & Commercial $60,000 The leading provider of electrical testing and tagging services. Are you ready to be a part of this highly successful brand and create a new future for yourself? Jim’s Test & Tag gives you the training, support and systems you need to succeed.

Just Cabins Home & Building $500,000+ Just Cabins provides portable cabins for rent which are just perfect as sleepouts, extra rooms, portable offices, or as storage at your home or business. Long-term cabin rentals provide a passive income, excellent growth and are easily run by one person part-time.

Just Cuts Health & Beauty $170,000$270,000 Be your own boss and get all the support you need. You don’t have to be a hairdresser to own a Just Cuts, but you do need a passion for people and the ability to follow a proven system that has worked for over 30 years.

Just Kidz Educare 67 Leisure & Education $400,000$700,000 Just Kidz is a leading early childhood education brand dedicated to providing high-quality preschool education and care. Franchise and partnership options available for people with passion and commitment to supporting families’ educational and care needs. Offering a vibrant, social, rewarding business within your community.

Katsubi 27 Food & Beverage $350,000$500,000 Make this your winning day, with a chance to join one of the most successful local franchised eateries in New Zealand. With more than 12 years of experience in the food chain industry, Katsubi invites our potential partners to build your dreams and succeed with us.

Kinetic Electrical Home & Building P.O.A.

Professionally planned franchise system, fully documented to help you work smarter not harder to reach full potential of your company’s experience and expertise. Kinetic Electrical is a franchise for owners of existing electrical contracting companies with a passion to grow their business.

Kitchen Studio Home & Building $150,000 New Zealand’s kitchen design specialists. Designing and installing custom-made kitchens throughout New Zealand since 1984. Enquire now for details of what location may suit. Join a motivated, professional, well established franchise network.

Kitset Assembly Home Services $60,000 Kitset assembly is our business and demand for the service is extremely high.

Kiwikrane Leisure $50,000 New Zealand’s crane amusement machine franchise. These stand-alone machines contain soft-toys, chocolate and jewellery. Franchisees enjoy part-time, flexible work and operate machines in an exclusive territory. The Kiwikrane franchise also provides advice on how best to locate and operate machines successfully.

Kowhai Roof Coatings Home & Building $20,000

The Kowhai guys have been restoring and recoating roofs in most regions of NZ since the 1980’s. We have a proven and exclusive Kowhai coating system. Experience in roofing or coating systems required. Limited number of areas available now for suitable candidates.

Kumon Leisure & Education $30,000 With over 3.5 million students worldwide, Kumon is the world’s largest provider of individualised mathematics and English programmes. Founded in 1958, Kumon has generous subsidies and low start-up costs. Join Kumon to make a difference in your community by developing students into confident self-learners.

La Porchetta Food & Beverage $400,000 Join the largest Italian restaurant chain in Australia and New Zealand. You will love taking part in serving our guests quality Italian food, to order, using fresh ingredients. We are looking for passionate individuals with a strong work ethic and drive to join our family

8 460 Ryan Bohm P 0061 405 518 515 E sales.nz@inxpress.com

W inxpress.com/nz

8 169 Maree Keane M 027 484 7301

E maree@foodco.co.nz

W jamaicablue.co.nz

380+ 13K+ P 0800 526 454 E reception@janiking.co.nz

W janiking.co.nz/franchisees

14 40+ Tiffiny Begley P 0-9-557 3057 M 021 621 157

E franchisee@jesters-pies.co.nz

W jesters-pies.co.nz

27 27 Danielle Scott

P 0-9-302 1536

E danielles@jetcleaning.co.nz

W jetcleaning.co.nz

100+ 3000+ Rod Skelton

P 0800 454 654

E chchadmin@jimsmowing.net.nz

W jimsmowing.co.nz

35 185 Peter Mahon

P 0800 454 654

E info@jimstestandtag.co.nz W jimstestandtag.co.nz

54 54 Fenton Peterken P 0-9-889 8776 E sales@justcabins.co.nz W justcabins.co.nz

28 200+ Zenardia Anderberg P 0800 100 114

E bdm@justcuts.com W justcuts.co.nz

7 7 Vanessa Henry M 021 204 3410

E vanessa@justkidz.co.nz W justkidz.co.nz

25

25 Zoe Park

M 021 880 278

E franchise@katsubi.co.nz

W katsubi.co.nz

25 25 Vicki Bambry

M 0274 852 010

E vicki@kinetic-electric.co.nz

W kinetic-electric.co.nz

16 16 Simon Harkness

P 0-9-815 3000

E simon@kitchenstudio.co.nz

W kitchenstudio.co.nz

P 0508 454 873

16 178

51 163 Thomas Felton

P 0-9-846 2800

E thomas@kiwikrane.co.nz

W kiwikrane.co.nz

19 19 P 0-9-636 1357

E info@kowhairoofs.co.nz

W kowhairoofs.co.nz

48 24,700 Leandra Exeter

P 09 302 9172 M 027 512 9608

E recruitment.NZ@kumon.com.au

W kumoninstructors.co.nz/franchise

4 43 Brendan Flanagan

P 0061 3 9460 6700

E franchising@laporchetta.co.nz

W laporchetta.co.nz

14

Landmark Homes 4 Home & Building P.O.A. Landmark Homes is recognised as an industry leader in top quality, new home design and construction. We are searching for highly driven and motivated people (preferably with building industry knowledge) to join our growing franchise network throughout New Zealand.

New Zealand Fitness, Health &

$375,000 Partner with an award-winning franchise. Laser Clinics New Zealand are proud to be the global leaders in our industry, providing laser hair removal, cosmetic injectables, skin and body treatments at affordable prices. With a unique 50/50 business model, we are in this together!

P.O.A. Our multi award-winning Laser Electrical and Plumbing groups have experienced phenomenal growth over the last 10 years. Laser Group’s market leadership position has been earned through innovation, planning, use of quality systems and attention to providing the highest levels of customer service.

you looking to secure a guaranteed income and grow with a vibrant company? This is your opportunity to run your own business and be part of one of New Zealand’s fastest-growing residential cleaning companies. Visit our website for more information.

with a passion for our industry

largest NZ fast-food chain of fish and chips and associated seafood stores.

Star is New Zealand’s largest restaurant & bar concept.

Seeking people all over NZ to join us bringing our all-inclusive 100% vegan, halal- and koshercertified plant-based menu to Kiwis. If you have a passion for ethical business and making a real difference, are a natural-born leader and love interacting with people, we want to hear from you!

Luxurious Spa & Nails Health & Beauty $150,000 Be your own boss with Luxurious Spa & Nails, a New Zealand-owned nail salon franchise system in the booming beauty market. Full training and support provided. Great return on investment, with opportunities for franchisees throughout New Zealand.

Mad Butcher Food &

$350,000$450,000 One of New Zealand’s best-known home grown franchises, trading since 1971.

Maintain To Profit Home & Building $59,000

Majestic Food & Beverage $250,000$450,000

Personnel 8 Business &

Maintain

To Profit is New Zealand’s leading property renovation and maintenance business. It is primarily a sales and project management licence business opportunity. A passion for renovating, property or trade background are advantageous. Contact us for your next business or career move with unlimited potential.

Majestic is a premium boutique café brand creating exceptional experiences for locals across New Zealand. With a unique point of difference and a vast range of products available, take advantage of a brand that is bringing something fresh to the industry in so many ways.

Hit the ground running with your own recruitment franchise under a brand that has been successfully operating in NZ for 30+ years. With minimal overheads and maximum profit, the Martin Personnel model has built-in systems, infrastructure and a Candidate / Client Management Software Programme.

highly qualified applicants to apply for our 12-month franchisee training programme.

has established a work-from-home distribution channel for selling and servicing

Fresh has led the Mexican evolution in NZ since 2005. With giant American-style burritos and Mexican beer in a colourful, casual atmosphere. We are recruiting energetic, enthusiastic franchisees with a passion for great food and excellent customer service for our turn-key restaurants.

2 2 Nicola Bow M 022 194 8747 E nicola@firstfranchise.co.nz W askmartin.co.nz

4559

12 12 Jon Hassall M 028 8500 1300 E hola@mexico.nz W mexico.net.nz Midas Auto Services $100,000 Midas – New Zealand’s home of peace of mind motoring. Midas is an internationally recognised automotive repair and servicing franchise. We are looking for franchisees who are ‘drivers’ and truly love helping people. Automotive experience an advantage but not necessary.

Mexico is a well-established, strong and well-loved Mexican restaurant group. Silverdale (Auckland) restaurant and new locations nationwide available now. Seeking people with a passion for hospitality. Full training and support provided.

12 2000+ Jason Wilson P 0-9-415 0235 M 021 955 969 E franchise@midasnz.co.nz W midasnz.co.nz/franchise-info

Mike Pero Mortgages Financial Services $20,000 Our franchisees work in partnership with the franchisor to build a rewarding business. 60+ 60+ P 0800 500 123

Mike Pero Real Estate Real Estate

Mike Pero Real Estate is a home-grown New Zealand company that takes great pride in delivering the highest level of customer service possible to its clients. 20 years’ experience helping homebuyers with their home loans. We now provide full real estate services with lower fees.

Homes delivers a proven and smart franchisee package nationwide.

Franchise and Business Opportunities

team of home-based chartered accountants who utilise technology to provide pragmatic accounting solutions to small business owners. Enjoy the support of working with like-minded colleagues with the best tried and tested systems for operating a public practice business.

Home Services $20,000 Franchises available in lawn mowing and gardening, commercial and home cleaning, handyman services. Founded in New Zealand in 1992 and still New Zealand owned. Weekly earnings in excess of $2000pw. Low royalties. Many franchisees have been with Mr Green for over 20 years.

Whippy is looking for new owner/operators nationwide.

MTF Finance are looking for hardworking people with lending and business management experience to join our nationwide team of franchisees operating from Whangarei to Invercargill. Using MTF Finance’s system to market, approve and originate loans, you’ll manage your loan book using our web-based management system.

Build a life you love with Muffin Break! Benefit from the comprehensive training and support from a reliable and trusted franchisor, growing businesses in NZ for more than 25 years. Muffin Break is expanding and we seek enthusiastic and customer-focussed franchisees throughout the country.

Make a difference in children’s lives today with our out-of-school programmes.

MYGuy 63 Home & Building $41,950 MYGuy is New Zealand’s leading residential and small business property maintenance company, with a focus on quality workmanship, exceptional customer service and a healthy work/life balance. No business experience required with full training and ongoing franchise support included. Be your own boss today!

Narellan Pools Home & Building $50,000 Looking for highly talented and passionate people hungry for success.

Navigation Homes Home & Building $125,000$250,000 Navigation Homes are offering an opportunity to own and drive a profitable house-building franchise. Proven management systems, support, and the best national supply prices. Extensive range of designs to offer customers. Get off the tools and build an asset for yourself.

New Zealand Natural Ice Cream Food & Beverage $250,000 New Zealand Natural Ice Cream is a global franchise network based out of Auckland, New Zealand. It operates as the franchisor of the New Zealand Natural ice cream, frozen yoghurt, smoothie and juice parlours. Level of investment depending on store location and turnover history.

New Zealand Sotheby’s International Realty (NZSIR)

Night ’n Day Foodstores

Real Estate P.O.A. New Zealand Sotheby’s International Realty was founded in 2005 by Mark Harris and Julian Brown. Still privately owned, run and operated, the company holds the exclusive rights to the Sotheby’s International Realty brand in New Zealand. Franchise territories are available.

Retail $300,000 The Night ‘n Day Foodstore franchise, NZ’s leading convenience store chain offers group buying, uniformed image, full staff training, assistance in shop layouts and designs, profit reports, assistance with staff rosters, group advertising and full accounting facilities. New sites and conversion of existing businesses welcomed.

glass opportunity offers a proven business model with a nationally recognised

Are you passionate about teaching but have had enough of the long hours and extra paperwork? A proven after-school tuition provider delivering exceptional results, is looking for education experts to join our expanding franchise network.

trusted house inspection business. Quality pre-purchase surveys and multiple income streams.

Changers provide the convenience of drive-through vehicle servicing. No previous experience required.

professional people with transferrable skills to join our brand as franchise owners.

don’t need to be an optometrist to enjoy the amazing financial and professional rewards of running your own optical business, you just need strong business acumen and the ability to motivate and manage a sales team.

own portfolio of clients, working alongside a highly experienced consulting team.

& Send move and handle local and international freight through a network of retail stores with a professional custom packaging service. A one-stop shop for retail and business customers. We are looking to grant franchises to those who are prepared to embrace our ‘no limits’ culture.

largest chain of standalone garden centres, helping grow great gardens since 1912.

100% locally owned and operated, Paper Plus is a co-operative franchise combining the expertise and support of a large, nationally recognised brand with franchisee entrepreneurial drive and passion for retail. We offer full training and support. Franchise opportunities available nationwide.

Para Rubber Retail $150,000$250,000 Iconic New Zealand retailer dominating the market in sales of foam, foam mattresses, rubber, mats, and Para pools. Looking for energetic people serious about customer service and looking to build a successful business through determination. Opportunities available in South Auckland, Hawkes Bay and Dunedin.

Paramount Services 64 65 Business & Commercial $30,000 A Paramount Services franchise is a safe and affordable way to own your own business. When you become a franchisee we will provide you with enough cleaning contracts to support a stand-alone franchise business. Established in 1979, Paramount Services has 160+ franchisees servicing 2,000 clients.

Paramount Vehicle Grooming Auto Services $35,000 Mobile car grooming business servicing private and corporate clients. Franchisees need to be well organised and prepared to work hard. You will be trained by Paramount in how to clean a car efficiently and effectively, and how to run your own business.

Pegasus Rental Cars Leisure & Transport $20,000$70,000 Offering the best value-for-money car hire in New Zealand for over 30 years.

PeopleCare Business & Commercial $195,000 New mobile workplace health monitoring franchise. Mobile clinics providing lung function, hearing, hand, arm, vibration and occupational vision testing on site at workplaces. Operating with a high standard of ethics is important for us, so naturally we will be seeking franchisees who share our values.

PERL Plumbing & PERL Electrical Home & Building $10,000 PERL is a professional franchise model for ambitious contractors looking to start their own business or supercharge their current one. PERL provides ongoing superior support and business education, exceptional supplier pricing and discounts, innovative integrated operating systems, and coordinated national sales and marketing.

W myguy.co.nz

19 80 P 0-7-846 8761

11 11 Aaron Hall P 0-9-298 5972 M 021 477 506 E aaron@navigationhomes.co.nz W navigationhomes.co.nz

13 500+ Dipak Chhima P 0-9-274 6168

E dipakc@icecream.co.nz W icecream.co.nz

21 1000+ Bec Williams

P 021 246 9260

E Bec.Williams@nzsir.com

W nzsothebysrealty.com

54 54 Nicky Gibbs M 027 4737 919

franchise@nightnday.co.nz W http://nightnday.co.nz

100

Carrie Welch P 0800 727 377 M 027 570 7112 E operations@paperplusgroup.co.nz W paperplusgroup.co.nz

10 10 Vaughan Moss P 0-9-532 8794 M 021 921 976 E vmoss@pararubber.co.nz W pararubber.co.nz

160+ 160+ Bill Wu P 0-9-376 7850 M 027 588 3126

E bwu@paraserve.com

W paraserve.co.nz

1+ 1+ Stella Blake P 0-9-376 7850 M 021 912 615

14 14

E sblake@paraserve.com

W paraserve.co.nz

M 027 257 4500

2 2 Ian Kebbell

P 0800 50 80 30 M 021 629 626

E office@peoplecare.co.nz

W peoplecare.co.nz

6 6 Andrew Cochrane

P 0800 438 7375 (GET PERL)

M 027 616 0433

E membership @perlgroup.co.nz

W perlelectrical.co.nz

W perlplumbing.co.nz

Home Groomers is a New Zealand-owned company. We are a cleaning business with a difference. We predominantly clean only new premises cutting out the dirty work. The worst mess you will have to deal with is sawdust shavings and dusty windows.

providing world best-practice business management

advice

cleaning business. Wide range of property services. Waikato based business with opportunities in Hamilton city, Cambridge, Te Kuiti and Te Awamutu. Basic package starts at $16,500 +gst. Enquiries welcome.

0-7-847 2737

Weir

New

residential property management. Lucrative business model with coaching and training. Be the best property manager in your region with significant points of difference. Be a part of the award-winning Pukeko team.

809 534

9680

7880

A re-spouting service franchise for new and existing homes and commercial buildings. Spouting on the Spot is the perfect franchise opportunity for franchisees who want to keep their hands on the tools. Become a Rainaway Spouting-on-the-Spot franchisee today

RE/MAX

House

The

Red LBP Home & Building $49,000 Red LBP is a property inspection franchise offering quick-turnaround, comprehensive reports using an online booking system and a report-building software. Minimal computer experience needed, building experience compulsory. Family-friendly, highly supported, a great way to use a builder’s knowledge without early mornings and bung backs.

11

W redlbp.co.nz

45 45 Rod De Lisle P 0800 426 333

E rodd@robertharriscafe.co.nz W robertharriscafe.co.nz

Rodney Wayne 70 Health & Beauty $100,000 Rodney Wayne is the largest hairdressing franchise in New Zealand. You do not have to be a hairdresser but strong people skills combined with an excellent customer focus and management expertise are all critical elements that make a successful Rodney Wayne franchisee.

Rugbytots NZ Leisure & Education $7,500 Rugbytots is the world’s favourite rugby play programme for 2 - 7 year olds.

Saddlery Warehouse Retail $300,000$460,000 Leading equestrian retailer. Supplying all the items needed for horse and rider.

Scratchpad Leisure & Education $120,000 Scratchpad is a new technology learning centre with the goal to help youngsters love, use, and create opportunities with technology including coding, robotics, 3D design and printing. We are expanding, and looking for future-focused people with a passion for technology to run their own centres.

Select Home Services Home Services $13,000 Select Home Services offers you the opportunity to be your own boss.

51+

51+ Julie Evans

P 0-9-358 4644

E franchisiing@rodneywayne.co.nz

W rodneywayne.co.nz

M 021 878 335

7 50+

7 7 P 0-9-970 1058

5 5 Vijesh Nangia

P 0-9-216 9400 M 021 431 930

E franchise@scratchpad.co.nz

W scratchpad.co.nz/franchise

P 0-9-278 4930

160+ 290+

Franchise and Business Opportunities

Shake Out Food & Beverage $400,000 Shake Out is a brand proudly developed in-house by the team behind BurgerFuel. Shake Out serves up a simple, yet premium fast food solution, combining quality ingredients and frictionless technology. Shake Out are looking for new franchisees to become part of their successful network.

Shed Boss are suppliers of high quality steel frame buildings.

Clinic is NZ’s leading sports footwear retail store. Proven system.

Home & Building $50,000 Manage your own bathroom maintenance business specialising in fixing leaky showers. Tried and tested model. Initial training and ongoing suppport provided. Good margins and low overheads. Would suit plumbers, builders, or a skilled handyman. Locations available throughout New Zealand.

Network of premium cafés specialising in gourmet coffee and freshly prepared food.

Signature Homes Home & Building $150,000 Winner of the 2016 FANZ Supreme Franchise System award, we have 34 years’ experience building homes for Kiwis from 11 franchises supported by a National Office. If you have building or construction management experience and are looking for your next opportunity, please contact our CEO.

sKids Leisure & Education $45,000 Out of school care. Established 1996. Now in 100+ schools. Before school, after school and holiday programmes for primary school children. Would suit people who are looking for a change in lifestyle and who enjoy the company of children.

SkyTech 44 Business & Commercial Services $45,000 Agricultural and commercial drone services. Enjoy the independence of your own business and be part of our nationwide team. Purchase a lifestyle franchise with great income and a future asset. If you have dedication and commitment join us in an exciting and growing market.

SmartGrass 71 Home & Building $120,000 The synthetic grass industry is growing exponentially. The SmartGrass brand and solutions are at the forefront. Be your own boss and in total control of your financial future. We’ll support you to grow a highly-regarded, profitable business and you’ll never be short of great projects.

Smith’s Sports Shoes Retail $200,000 Smith’s Sports Shoes’ biggest strength is the relationship between franchisor, franchisee and suppliers. What you can expect from the Smith’s team includes integrity, fun, and profitability. We focus on team building and provide support and training. Seeking people with vision, great attitude and communication skills.

Snap-on Tools Auto Services $52,000 A unique opportunity to own your own business, built on a sound foundation of almost 90 years of experience. Snap-on franchisees are independent business people, controlling all aspects of their franchise and working flexible hours as needed to accomplish their personal goals.

Internationally recognized brand that proves innovation is the key to brand agility

New Zealand are leading optometrists and eye-care specialists. Now also offering audiology services.

100+

100+ Chris Bartels P 0-9-576 6602 M 021 974 221 E chris@skids.co.nz W skids.co.nz

2 3 Mark Lusby M 021 0221 2683 E franchises@skytechservices.co.nz W franchises.skytechservices.co.nz

4 4 Jack Kennedy P 0800 887 369 M 027 822 9006

E jack@smartgrass.co.nz W smartgrass.co.nz

15 15 Chris Smith

M 021 733 981

E chrismsmith@xtra.co.nz W smithssportsshoes.co.nz

14 5000 Stacey Gilbert P 0800 762 766 E sota.franchise@snapon.com W snapontools.com.au

100+

Royce Little P 0800 77 33 37 E sales@speedqueen.co.nz W speedqueen.co.nz Speedy Signs

Stihl Shop 74 Retail

Enjoy true passive income with a Speed Queen self-serve laundromat. With our turn-key service, you’ll be up and running in your own profitable business in no time, backed by the world’s oldest and largest manufacturer of commercial laundry equipment.

$150,000 New Zealand’s largest signs and graphics network uses the latest technology in an exciting industry with huge opportunity. Proven systems and sound business practices with a focus on high quality and excellent service set us apart in the signage market. No prior experience required.

$400,000 Stihl Shop is a nationwide network of independent, locally owned specialist outdoor power equipment retailers. Every Stihl Shop is operated by friendly approachable people who are passionate about outdoor power equipment. Full training and on-going support. Sites with real growth potential available across NZ.

Stirling Sports Retail $340,000 We play to win by delivering world-class retail experiences, inspired by sport, executed with style. Stirling Sports will provide all the training and support to build and sustain your business. Opportunities available throughout New Zealand. Retail experience is an advantage but not essential.

27 850 Sarah Archibald P 0-9-577 4223 M 021 479 123

E fnz@businessfranchise.co.nz

W speedysignsfranchise.co.nz

83 83 Darryl Perkins M 021 543 576

E darryl.perkins@stihl.co.nz

M 021 668 244

Stonewood Homes NZ Home & Building P.O.A. We are now expanding and seeking builders and construction entrepreneurs throughout the regions. 19

Storage Box Retail $150,000 The preferred home and office organisation specialists providing solutions to New Zealand customers. 20 20 P 0-9-271 1025

Streetwise Coffee Food & Beverage $155,000 Every day, thousands of coffee lovers buy a Streetwise coffee. Our designer coffee outlets have become symbols of coffee perfection. We’re seeking people nationwide who love the thought of selling fantastic coffees to appreciative customers. Site selection assistance, training and support is given.

24 24 Donna Ferrall

M 027 552 2055

streetwisecoffee.co.nz

027 606 0063 Subway Food & Beverage $250,000 The world’s largest quick service submarine sandwich and salad franchise. 250 46K+

Stroud Homes Home & Building $95,000 Stroud Homes offer a fresh approach to building new homes for your customers.

Super Liquor Retail $200,000 With 130+ branded stores throughout the country, we are represented in many local communities, delivering to them real value and true convenience. We are New Zealand’s most trusted liquor brand offering market leading terms of trade and innovative national advertising and marketing programmes.

130 130

Super Shuttle Business & Commercial $90,000 Super Shuttle has grown into New Zealand’s favourite airport transfer business. 120 120

SuperValue 11 Retail $2,000,000 Wholesale Distributors Ltd is the franchisor for the SuperValue and FreshChoice group of supermarkets. All our stores are locally owned and operated and totally community focussed. We are looking for franchisees who are customer-focussed with proven business experience. Opportunities available nationwide.

Swimart Pool & Spa Services Retail $50,000 Australasia’s most experienced chain of pool & spa specialists. Swimart commenced business in Sydney in the early 80’s and since that time has grown through the provision of expert friendly advice and superior customer service to be the market leader in the pool and spa service sector.

The Alternative Board Business & Commercial $83,000 The Alternative Board, a leading international franchise organisation, seeks franchisees to facilitate peer board meetings and offer executive coaching to local business owners. With a background as an executive, coach, consultant or business owner, you will help businesses achieve more profitability, productivity and personal fulfilment.

The Cheesecake Shop Food & Beverage $200,000 You don’t need to be a baker, our excellent training course teaches you how.

subway.co.nz/about-us/own-a-franchise

P 0-9-523 4064

E enquiries@superliquor.co.nz

W superliquor.co.nz

P 0-9-522 5100

39 39 David Callaghan

M 027 494 8361

E david.callaghan@woolworthsnz.co.nz

W supervalue.co.nz

6 78 Brett Reading P 0800 928 373

E brett.reading@swimart.com.au

W swimartfranchise.com.au

13 300+ Alfredo Puche

M 027 427 9172

E apuche@thealternativeboard.co.nz

W thealternativeboard.co.nz

33 220 David Reid P 0-9-475 9634 M 021 625 555

E davidr@thecheesecakeshop.co.nz

W thecheesecakeshop.co.nz

P 0-7-839 6209

The Christmas Heirloom Company Retail $40,000 Providing high quality, luxurious Christmas decorations. A profitable seasonable business. 10 11

The Interface Financial Group Financial Services $39,000 The Interface Financial Group provides debtor financing service to the SME business.

The Leather Doctor Home Services $80,000 The Leather Doctor is New Zealand’s largest mobile leather and vinyl cleaning, repair and restoration network. Leather Doctors are provided extensive training and can undertake an array of commercial and private work. No previous experience required.

The Office Professionals 39 Financial Services $30,000 The Office Professionals presents an ideal opportunity for those with a finance background looking to supplement their income with a profitable, flexible lifestyle franchise that promotes a healthy work/life balance.

The Shed Specialists Co Home & Building $20,000+ Join a business that is cutting-edge, with a distinct advantage over competitors. Work directly alongside manufacturers and customers to construct custom-made, fit-for-purpose sheds. Highly profitable business model with excellent support systems in place, customers ready and waiting. Investment covers fees, tools and equipment are additional.

The Wheel Magician Auto Services $69,750 We have developed a system which provides mag wheel repairs to a very high standard in a short space of times. This means you have delighted customers and complete lots of jobs in a day. Well-established franchise opportunity available for the right person.

Think Water Retail P.O.A Think Water is Australasia’s leading network of independently owned irrigation water services solutions with nearly 50 stores. We specialise in the design and implementation of the most water efficient irrigation and water management programmes for clients.

Tint a Car Auto Services $25,000 Experts in car, home and office window tinting for over 50 years.

Touch Up Guys 18 Auto Services $88,000 New Zealand’s premier mobile paint and bumper repair franchise. High quality car paint restoration services to commercial and private customers. Professional, reliable, cost effective and convenient. No industry experience required. Comprehensive training and full ongoing support provided. Great opportunities are available throughout New Zealand.

New Zealand’s largest independent toy retailing group.

Clinic is a well-established, successful appearance medicine, laser and beauty franchise.

$50,000 Trident Homes are offering the opportunity to operate a business which is 100% NZ-owned. Established, recognised and growing brand. Seeking trade-qualified builders or experienced business owners with good people skills who are passionate about home building. Full training and ongoing support.

help

of the public sell cars in a caryard environment.

innovative mobile franchise whose core business is confirming the pregnancy of farm animals using real-time ultra-sonic equipment. Becoming a part of this franchise network enables the franchisee to run a low-cost, high return business in an exclusive territory, using a proven business system.

buffet restaurant seeking hospitality-minded franchisees with drive, passion and energy.

unique opportunity to be part of an iconic New Zealand company and build a real business of

home services franchise providing flexible, multi-serviced businesses for 43+ years. Exclusive territories, paid training, established customers, income guarantee. Indoor and/or Outdoor opportunities available nationwide. Actively seeking motivated franchisees wanting to succeed. Multi-award winning systems, ongoing support and business mentoring provided.

Bespoke designs via 3D CAD design package. Full training provided.

looking for hardworking and dedicated people around New

with 30 plus years of proven dependability. With a profitable work from home opportunity, all you need is a suitable vehicle. Franchisees are fully trained and receive regular ongoing training and full support from our operations, technical, sales, marketing and IT departments.

leading pre-purchase home inspection company.

design, supply and construction of pre-engineered buildings. Limited opportunities in the North Island.

and installation franchises available in New Plymouth and Gisborne.

Owned by the BurgerFuel Group, Winner Winner specialises in the finest woodfired and crispy fried chicken. As it turns out, chicken is the fastest growing protein category globally which means there’s piles of opportunity right here, right now.

proven system to establish premium lawns using innovative pre-seeded lawn mats.

Delight workplace espresso machines provide a semi-passive income with life-style benefits.

2 2 Nicola Bow M 022 194 8747 E nicola@firstfranchise.co.nz W shedspecialists.co.nz

14 14 Alan

Food &

Serving fresh, healthy and flavoursome Mexican food in New Zealand since 2014. When you join the Zambrero family, you’re joining a fast-growing international Mexican restaurant with a mission to stop world hunger through our Plate 4 Plate initiative.

a nationwide range of quality frozen fruit beverages and alcohol cocktails.

Aramex see page 44

Chatime

CrestClean

see page 2

Duck Donuts

P 0-6-833 6333

E recruitment@aramex.co.nz

W aramex.co.nz

Nathan Bonney

M 0275 393 022

E nathan@iridium.net.nz

Grant McLauchlan

M 027 479 6415

E grant@crestclean.co.nz

W crest.co.nz/business_ opportunities-nz

Nathan Bonney

M 0275 393 022

E nathan@iridium.net.nz

Jim’s Test & Tag see page 57 Peter Mahon P 0800 454 654 M 021 859 222

E peter.mahon@jimstestandtag.co.nz

W jimstestandtag.co.nz

Business & Commercial Aramex, formerly known as Fastway Couriers, is an award-winning franchise system that provides local and national courier and freight services at competitive prices. Over 35 years’ experience, multiple industry awards and franchises across New Zealand, Aramex is one of New Zealand’s most successful and trusted freight companies.

Food & Beverage Chatime have modernised the traditional Taiwanese tea culture. Operating in Australia since 2009, Chatime are fast on their way to achieving 200 Australian outlets. Secure the opportunity to grow Chatime in New Zealand as Master Franchisee or Area Developer.

Business & Commercial CrestClean regional master franchises suit administrators, sales people or managers with people, business and accounting skills who are interested in working in the cleaning industry. Must be customer-oriented.

Food & Beverage The fastest-growing donut shop in the US. Be part of the Duck Donuts family, bringing Duck Donuts to New Zealand. Duck Donuts are seeking a master franchisee who shares their vision and commitment of offering a welcoming, family-friendly and delicious experience to continue growth around the world. Join the growing success story and create sweetness and smiles with Duck Donuts.

Business & Commercial

Entrepreneur required to take this fantastic opportunity with passive income and potential to the next level. We are looking to appoint regional master franchisees in Auckland, Wellington and Taranaki to assist existing franchisees increase sales and market penetration, and be responsible for opening up approximately 20 new areas. Full training facilities are provided and back-up and support from Jim’s Test & Tag.

1,600 NZ$100,000

1000+ P.O.A.

Jim’s Test & Tag Division

Peter Mahon P 0800 454 654 M 021 859 222

E peter.mahon@jimstestandtag.co.nz

W jimstestandtag.co.nz

Business & Commercial NZ-wide master franchisor opportunity. Fantastic opportunity to purchase the master rights for the whole country. 7 incumbent regional franchisors and 40+ franchisees. Many more regions available to sell. Cash flow from day one and great residual income. You have the backing and support of one of the largest franchise groups in Oceania.

Home Services Regional master franchisees. Lawnmowing/gardening and home cleaning. Your desire to work with people and a commitment to quality and customer satisfaction will help you realise the potential of the business. A proven record of people management and

200 NZ$100,000

ACCOUNTANTS

Baker Tilly Staples

Rodway Christchurch Limited

BDO

Blackler Smith & Co

Franchise Accountants 30 31 86

Assistance with franchise purchases and ongoing accountancy and I.T. support in the franchise area. Over 15 years’ experience in franchising in the SME market, acting for both franchisors and franchisees.

With 16 offices, BDO is NZ’s fastest growing chartered accounting and business advisory firm. Our franchise specialists offer bespoke services in due diligence; structure reviews; appraisals; agreements, strategic planning; full accounting, audit, tax advisory and support services; raising capital and finance. Smart New Zealand business, backed by BDO.

Very experienced and approachable chartered accountants. If you’re buying a franchise, what should you pay for it? Is this franchise any good? How much money will I make? How do I set everything up? I need help from someone experienced. Ben Blackler can help you buy a good business, set it up correctly and run it effectively. Award-winner – Professional Services.

Save time, money and tax by benefiting from our specialist franchise advice and proven accounting solutions. Your success is our business. Ring now 0800 555 8020. Specialist franchise accounting solutions including due diligence, benchmarking, budgeting, valuations, business mentoring, tax planning, cashflow management and reporting software systems.

Inspired Accountants 88 We are chartered accountants who specialise in franchising. Having a look under the bonnet (due diligence) is key when buying a business. We do this and set up robust reporting systems so you know how the business is performing. Inspired Accountants – Inspiring You.

KPMG Franchise accounting and business advisory experts. We take care of your tax, accounting and business advisory needs so you can spend more time focusing on your franchise.

Nexia New Zealand Nexia New Zealand are franchise accounting and business advisory experts with broad experience in all aspects of franchising. If you own a franchise, are thinking of buying one, or want to franchise an existing business, we have all the expertise to help you succeed.

South Island Jon Robertson/Dave McCone

P 0-3-343 0599

E jon.robertson@bakertillysr.nz

W bakertillysr.nz

National Tristan Will

P 0-4-472 5850

E tristan.will@bdo.co.nz

W bdo.nz/franchising

Greater Wellington Ben Blackler

P 0-4-555 9090

E ben@bsco.co.nz W bsco.co.nz

National Philip Morrison P 0800 555 8020

E info@franchiseaccountants.co.nz

W franchiseaccountants.co.nz

National Craig Weston

P 0-9-309 2561 M 021 309 309

E craig.weston@inspired.co.nz

W inspired.co.nz

National Hamish Smith P 0-9-363 3251 M 0274 450 977

E hamishsmith@kpmg.co.nz

W kpmgenterprise.co.nz

National Scott Travis

P 0-9-448 3232 M 021 414 569

E stravis@nexiaauckland.co.nz

W nexia.co.nz/industries/franchising

company page number description location FANZ get more information Specialist Advisors

National

National Craig Gardiner P 0800 999 722 E enquiries@sba.co.nz W sba.co.nz/franchise-accounting

FINANCE PROVIDERS

ASB 66 ASB provides a comprehensive range of financial solutions for both franchisees and franchisors including finance, insurance, savings and investment options, everyday banking and more. So if you are thinking of starting or buying a franchise, talk to our franchise specialists on 0800 272 476.

BNZ Talk to us about our wide range of specialist services that we can tailor to meet your needs as a franchisor or franchisee. We’ll use our 145 years’ experience in business banking, giving your business the support it needs to grow and succeed.

CFI Finance

CFI Finance provides leases, loans and other financial products that help our customers establish new businesses or grow and develop existing ones. With exceptional service and an easy application, we are faster, more flexible and more able to meet the needs of our customers.

Prospa 32 Prospa is New Zealand’s small business lending specialist. By making the loan application process faster and easier, we’ve helped thousands of small businesses grow and take advantage of opportunities, with support from our friendly team of Business Lending Specialists.

Silver Chef Silver Chef is the only dedicated hospitality equipment funder in New Zealand and we have been providing flexible equipment funding to the hospitality industry for 30 years. Preserve your working capital with Silver Chef, and fuel your growth through our various franchise funding solutions.

Westpac New Zealand Ltd 22 23 92

Westpac is New Zealand’s most experienced bank in franchising and the only bank offering dedicated franchise specialist managers throughout the country.

Westpac has a high level of expertise in the franchise industry; this has been built up over the past two decades by working closely with franchisors, franchisees and industry specialists. The resulting depth of experience enables us to provide you with informed specialist advice regarding franchise funding and franchise specific transactional solutions.

Specialists in franchise financing:

Auckland/Northland - Mike Haigh, Sujam Ratnayake

South Island – René Artz

FRANCHISE CONSULTANTS

Franchise Accountants 30 31 86

Franchize Consultants (NZ)

Tereza Murray Franchising

Specialist advice on franchise system development, feasibility studies, recruitment, documentation, manuals, ongoing mentoring, strategic planning and partnering to grow your business.

34 Specialists in franchise development, strategic planning, legal briefs, systems and manuals, recruitment processes and documentation, ongoing mentoring and sound advice on franchising and licensing. Recognised as New Zealand’s leading management consultancy specialising in franchise development. Experience with many of NZ’s top franchised companies.

20 We specialise in developing comprehensive and cost-effective franchise systems for small businesses needing a growth strategy that delivers profit, performance and scale.

The Franchise Coach 88 Comprehensive advice on franchise system development. Feasibility studies, manuals, documentation, legal briefs, franchisee recruitment, exporting and importing, mediation and ongoing mentoring to grow your business. The Franchise Coach has been a major contributor to the success of franchising in New Zealand since 1983. Consultants, trainers and speakers.

LAWYERS

ASCO Legal 4 At ASCO Legal we have a fresh perspective on the practice of law, a client-centred one. Our team is friendly, approachable and efficient. We enjoy helping both our franchisor and franchisee clients get the most benefit out of franchising, providing quality pragmatic advice.

Botherway 48 Commercial law firm specialising in franchising and related law. We work with you to give you the best possible legal support in your franchised or licensed business. Justina Knox is our specialist franchise lawyer and also has experience dealing with disputes and the successful negotiation of franchise exits.

Botting Legal Franchise and commercial law specialists. We provide practical legal advice in plain English for both franchisees and franchisors at very competitive rates. Preparation and review of franchise documentation, advice on structuring and IP protection, franchise operation and dispute resolution.

Brookfields Lawyers Expert franchise lawyers. Fixed price packages. Urgent advice is no problem.

Deirdre WatsonBarrister 25 years’ experience in litigation, disputes, court cases and mediation. Franchise dispute specialist.

Duncan Cotterill Enterprising full service law firm with offices nationwide. Experts in franchise system establishment, network growth and international expansion. Covering all your franchise and broader business needs, including distribution networks, supply chains, intellectual property, employment, health and safety, property/leasing, acquisitions and sales, immigration and dispute resolution.

Franchise Law 50 Drafting, amending and reviewing franchise agreements. Franchise sales and purchases. Commercial property leases, sales and purchases.

National Our

Franchise Experts

P 0800 39 40 41

E enquiries@anz.com

W anz.co.nz

National ASB Franchise Team

P 0800 272 476

E franchising@asb.co.nz

W asb.co.nz

National Riaan Wilson

P 0800 ASK BNZ

E riaan_wilson@bnz.co.nz

W bnz.co.nz/franchise

National Customer Service

P 0800 456 687

E hello@cfifinance.co.nz

W cfifinance.co.nz

National Liam Popham

P 0800 005 797

M 0061 402 816 809

E info@prospa.co.nz

W prospa.co.nz/franchise

National Trent Parkinson

P 0800 443 334

E tparkinson@silverchef.co.nz

W silverchef.co.nz

National Daniel Cloete

P 0800 177 007

E franchising@westpac.co.nz

W westpac.co.nz

National Philip Morrison

P 0800 555 8020

E info@franchiseaccountants.co.nz

W franchiseaccountants.co.nz

National & Worldwide Callum Floyd

P 0-9-523 3858

E callum@franchize.co.nz

W franchize.co.nz

National Tereza Murray

P 027 471 7337

E tereza@terezamurrayfranchising.co.nz

W terezamurrayfranchising.co.nz

National & Worldwide Stewart Germann

M 021 276 9898

E stewart@thefranchisecoach.co.nz

W thefranchisecoach.co.nz

National & Worldwide Alistair van Schalkwyk

P 0-9-308 8071 M 021 0274 2011

E alistair@ascolegal.co.nz

W ascolegal.co.nz

National Justina Knox P 0-7-839 1122

E justina@blegal.co.nz

W botherway.co.nz

National Bradley Botting

P 0-9-950 3880 M 0274 769 738

E franchise@bottinglegal.com

National P 0-9-979 2109

E law@brookfields.co.nz

W brookfields.co.nz

National Deirdre Watson

P 0-9-309 6988

E deirdre@deirdrewatson.co.nz

W deirdrewatson.co.nz

National Hamish Walker

P 0-4-499 7809 M 027 288 2339

E hamish.walker@duncancotterill.com

W duncancotterill.com

National Thada Chapman

P 0800 Solicitor M 021 309 233

E thada@franchiselaw.co.nz

Gaze Burt 43 Lawyers providing full legal services for franchisors and franchisees including advice and documents relating to franchise development, franchise evaluation, risk management, transactional management and dispute resolution. Our experience is extensive over many years and we understand the important and significant fundamentals required for quality franchising.

Gibson Sheat Lawyers 88 Comprehensive legal advice for franchisors and franchisees. All franchise documentation. We’ll sort out issues at the outset, before they become problems. If things have already turned pear-shaped our mediation and franchise dispute specialists can assist.

Goodwin Turner Commercial Lawyers 3 Goodwin Turner Commercial Lawyers aims to provide a modern, friendly, client-focused and efficient approach to your legal business requirements, with a genuine focus on adding value to your business.

Harmans Lawyers A Christchurch based firm offering comprehensive legal services for franchisors and franchisees including franchise and disclosure documentation, employment, leases, financing, dispute resolution and business structures. Full service legal firm that prides itself on being solution driven. Franchise specialists with a proven track record.

Jackson Russell Lawyers Your business needs specialist franchising advice and an experienced legal team that covers all areas of business law. Jackson Russell is a full service law firm that will get to know your business, tailor advice to your business objectives and guide you through the process.

Lane Neave Lane Neave is a full service law firm with offices Auckland, Wellington, Christchurch and Queenstown. We have a dedicated franchising team experienced in advising both franchisors and franchisees on all their legal requirements. Our clients include large nationwide franchisor chains through to individuals.

MacDonald Lewis Law

Martelli McKegg Lawyers

Mortlock McCormack Law

MST Lawyers

Expert franchise lawyers who specialise in fixed price packages for legal services. A specialist firm based in Parnell offering sound, practical and timely advice, we can assist with all business legal requirements.

Experienced franchise and business law advisors focussed on helping clients to succeed. All areas of franchising, including franchise documentation, business sales, retail and commercial leasing, licensing, supply and distribution, brand protection, health and safety, immigration, employment and dispute resolution. Advice in Mandarin and Cantonese.

Christchurch-based franchise experts advising clients locally and nationwide. Specialist advice for franchisors and licensors wishing to set-up and operate, and for franchisees regarding all aspects of their franchise. Full range of associated commercially-focused and cost-effective legal services provided.

Full service legal firm established since 1975 acting for franchisors and franchisees in both preparation and entrance into franchises within Australia, dispute resolution and regulatory compliance with the franchising code of conduct and other Australian legislation. Well connected in the Australian market.

Quantum Law 40 Specialists in franchise and business law. If you seek prompt and technically-sound legal advice delivered to suit your commercial objectives, please contact us. With a wealth of franchise, business and corporate law experience, you will be in safe hands.

National Michael Bright P 0-9-414 9800

E michael.bright@gazeburt.co.nz

W gazeburt.co.nz

Greater Wellington Claire Byrne P 0-4-916 7483 M 029 916 7483

E claire.byrne@gibsonsheat.com

W gibsonsheat.com

National & Worldwide Scott Goodwin

P 0-9-973 7350 M 027 700 7396

E scott@goodwinturner.co.nz

W goodwinturner.co.nz

National Mark Sherry P 0-3-352 2293 M 021 524 890

E mark.sherry@harmans.co.nz

W harmans.co.nz

National Darryl King

P 0-9-300 6935

E dking@jacksonrussell.co.nz

W jacksonrussell.co.nz

National Claire Evans P 0-3-353 8012

E claire.evans@laneneave.co.nz

W laneneave.co.nz

National & Worldwide Rory MacDonald/Tim Lewis

P 0-9-307 3324

E info@mllaw.co.nz

W mllaw.co.nz

National & Worldwide Andrew Skinner/Steven Lee M 027 705 4598 M 021 728 892

E andrew.skinner@martellimckegg.co.nz

E steven@martellimckegg.co.nz

W martellimckegg.co.nz

Kent Yeoman

Canterbury & National

P 0-3-343 8453 M 021 517 601

E kent@mmlaw.co.nz

W mortlock-mccormack.co.nz

Australia Alicia Hill P 0061 3 8540 0200 M 0061 409 215 943

E alicia.hill@mst.com.au

W mst.com.au

National & Worldwide Harshad Shiba

P 0-9-302 0070 M 021 407 228

E contact@quantumlaw.co.nz

W quantumlaw.co.nz

Simpson Grierson Specialists in franchise systems including structuring, documentation, human resources, property, taxation and transactions. National Richard Watts

P 0-9-977 5182 M 021 895 931

E richard.watts@simpsongrierson.com

W simpsongrierson.com

Stace Hammond Stace Hammond is a business law firm with offices in Hamilton and Auckland.

Stewart Germann Law Office, Lawyers and Notary Public

Turner Hopkins

Wynn Williams

17 New Zealand’s longest established specialised franchise law firm with over 40 years’ experience. Expert legal advice to franchisors and franchisees nationwide. Winners of 2022 Global 100 – Franchise Law Firm of the Year – NZ and 2021 Global Awards – Leaders in Law – Franchising Expert of the Year in NZ.

A full service firm who can help you with all your legal needs. If you are a franchisor looking to develop a franchise system or a new franchisee looking to purchase a franchise business we can develop fixed price packages to suit your exact needs.

The Wynn

Auckland & Hamilton Patrick Learmonth

P 0-9-306 6874

E pml@shg.co.nz

W stacehammond.co.nz

National & Worldwide Stewart Germann / Khushbu Sundarji

P 0-9-308 9925 M 021 276 9898

E stewart@germann.co.nz

W germann.co.nz

National Phil Shannon

P 0-9-486 9575 M 021 485 557

E phil.shannon@turnerhopkins.co.nz

W turnerhopkins.co.nz

OTHER SERVICES

ABC Business Brokers Business Brokers Specialist business sales company selling franchises for 20 years with branches nationwide. At all times, we place the greatest value on confidentiality, professionalism and innovation. Your business is our business.

Clyth MacLeod 48 Business Brokers With a 50-year track record, Clyth MacLeod is New Zealand’s longest-running business brokerage. We specialise in all sectors and are happy to provide a comprehensive advisory and sales service to franchisors, franchisees and prospective purchasers nationwide.

Crank’d Brand Consultants We are brand experts, combining human-centered thinking and creative with emerging technologies to create exceptional brand experiences. We are a one-stop creative shop specialising in franchise systems and multi-store operations, providing strategy, brand, creative, web and marketing solutions.

Crombie Lockwood Insurance Crombie Lockwood is one of NZ’S largest insurance brokers. We guide master franchisors on the complex insurance and risk management programmes necessary for successful franchises and provide face-to-face advice to individual members. Protect your business with SMARTpak, our smart insurance solution for franchisors and franchisees.

Cumulo9

Email Branding Cumulo9, digital solution experts ensuring your company communication is consistently and securely delivered. A complete omni-channel solution offering marketing campaigns, transactional emails, compliance, audibility, tracking and data management. A suite of products providing a cost-effective solution for seamlessly branded and deliverable business communication.

Design for Marketers Designers Engage Design for Marketers to obtain design resources for you to market your franchise brand effectively and consistently. Planning, creation and supply of resources for branding, advertising, promotional, recruitment, point of sale etc. Over 30 years’ experience with leading franchise brands. Be seen, be bought, be recommended.

Eftpos NZ 21 Financial Services Eftpos NZ is your complete payments partner. Whether you have one site or 100, we have the scale, expertise and experience to meet all your in-store, online and back-office payment needs. Talk to CK from Eftpos NZ today.

EmbroidMe 72 Corporate Apparel NZ’s largest uniform and promotional products business. We supply and brand quality uniforms, including polo shirts, corporate wear, sportswear, hospitality wear, plus a range of corporate gifts. Contact our national accounts team to help you manage your brand on a national basis.

Excel Digital Printing & Marketing Excel Digital enables organisations to optimise each step of the communications supply chain from strategy and ideation through to creative, print production, storage and re-order. In 2019 Excel Digital merged with Perception Group to become one of the largest digital-first printing companies in New Zealand.

Franchise Association of New Zealand 60 61 75

Franchise Infinity

Franchise Association

Franchise Media Training Media Training

Franchise Relationships Institute

Franchise Research & Development

Geotech Information Services 74 Network & Location Planning

HR Assured HR Management

Iridium Partners 28 Franchise Recruitment

The peak body representing the franchise community. Franchise members are required to submit their agreement and disclosure documents to ensure compliance with our codes of ethics and practice before being accepted into membership and biennially thereafter. Affiliate members are suppliers to the franchise sector.

Franchise Infinity is cloud-based software that combines a range of effective management tools which enables you to manage all aspects of your franchise from one centralised operating system. These efficiencies are driven through a focus on communication, training, compliance and performance.

Franchise Media Training has two core services. It helps franchises grow their bottom lines by showing them how to generate their own news media publicity. Secondly it prepares franchises for possible negative media attention that can destroy entire brands overnight.

Franchisee selection systems, satisfaction surveys, recruitment and training for franchise management. Assistance with organisational change and restructuring, conference presentations on managing the franchise relationship.

Founded in 2003, Geotech provides strategic network and location planning services to franchised businesses across South East Asia. Our particular expertise utilises data and science to help underpin location planning decisions across the retail industry. We have worked with many well-known international brands.

A growing focus on compliance in the franchise sector has increased the need for best-practice workplace management across a franchise system. HR Assured’s combination of HRIS and telephone advice can help every franchisee navigate around complex workplace matters with confidence.

Unique in the NZ market. Experienced franchise recruitment, operational and HR professionals who connect franchise brands and potential franchisees. We work directly with a number of leading brands. Our networks are extensive, our proven expertise extends over commercial property, franchise growth, development and recruitment.

Jones Lang LaSalle (JLL) Retail Leasing Brokers Ranesh and Nilesh at JLL are specialist retail leasing brokers who can provide expert advice to secure a retail location for your business. They have vast experience dealing with national and international brands throughout the country.

LINK Business Brokers 25 Franchisee Resales & Recruitment

We sell businesses. NZ’s most awarded business brokerage. 300+ sales specialists. 30,000+ owners have trusted LINK to sell their business. Whether you’re looking to grow your franchise, sell your franchise or buy a franchise, you’ll want to partner with LINK.

MYOB Accounting & Payroll Software MYOB offers easy online accounting software that has everything you need to take care of your franchise business, including POS and payroll solutions. Whether you’re a small or large franchise, or a franchisor managing multiple franchise sites, MYOB has the solutions.

Ravenswood Retail Park 73 Retail Leasing Ravenswood Central is a 13ha retail and commercial centre being developed in the new community of Ravenswood, north of Christchurch. Harvey Norman, BP, McDonald’s, New World, The Coffee Club and Lone Star are some of the recognised brands committed to being part of the development.

Spaceworks 53 Retail Network Roll-out New Zealand’s leading full turn-key solution for design, construction and procurement throughout the franchise and retail roll-out sector. We offer fixed pricing solutions that guarantee an on-time, onbudget approach to roll-out. Spaceworks work with some of NZ’s biggest companies, developing and implementing their retail networks.

Speedy Signs 72 Signs & Graphics

With 25 years in business, Speedy Signs has the experience, expertise and reputation in nationwide franchise signage. Contact our National Accounts Manager for a complete signage solution, from design to installation, ensuring your franchisees are brand compliant, right throughout the country

Storyteq formerly Brand Machine 36 37 Marketing Storyteq changes the way franchise brands do marketing. Our Brand Amplifier and Brand Portal solutions allow online and offline local area marketing to be executed with scale and efficiency, while giving franchisees the tools they need to execute their own local activity

The Mediator Mediation

Franchise disputes can be resolved quickly and effectively via online or face-to-face mediations, saving your brand and business from potential harm. With 20 years experience in mediation and law, Trish Blyth, ‘The Mediator’, has been on the panel of Mediators for the Franchise Association for 10 years.

Waipuna Hotel & Conference Centre Conferences Hotel accommodation with fully integrated conference centre suitable for small meetings through to international conventions. Full food, beverage and leisure facilities complete the offering. “World famous in New Zealand”, Waipuna Hotel and Conference Centre is an icon in the mid-range meetings and leisure market.

National Steve Smith P 0-9-630 3004

E steves@abcbusiness.co.nz

W businessesforsale.co.nz

National Joanne Bush P 09 630 9491 M 021 177 6009

E joanne@cmbusiness.co.nz

W cmbusiness.co.nz

National Steve Goldie P 0800 CRANKD M 021 977 979

E steve@crankd.nz

W crankd.nz

National David Rayner P 0-4-802 0166

E david.rayner@crombielockwood.co.nz

W crombielockwood.co.nz

New Zealand & Worldwide Chris Hogg P 0-9-377 8885 M 021 345 690

E chris.hogg@cumulo9.com W cumulo9.com

National Paul Donovan M 021 64 45 45

E paul@cdq.co.nz W cdq.co.nz

National Chaitanya Kothapalli (CK)

P 04 488 1679 M 022 177 0931

E chaitanya.kothapalli@verifone.com

W engage.eftpos.co.nz/franchise

National Peter Smythe P 0-9-577 4223 E info@embroidme.co.nz W embroidme.co.nz

National Anneliese Theron P 0-4-499 0912 M 027 811 8285

E anneliese.t@exceldigital.co.nz

W exceldigital.co.nz

National Robyn Pickerill P 0-9-274 2901 E contact@franchise.org.nz W franchiseassociation.org.nz

Worldwide Shane Boulle P 0800 555 013 M 021 083 66253 E sales@franchiseinfinity.com W franchiseinfinity.com

National Pete Burdon P 0-3-420 0300 M 029 200 8555 E office@franchisemediatraining.com W franchisemediatraining.com

New Zealand & Australia Greg Nathan P 0061 418 157 701 E gregnathan@franchiserelationships.com W franchiserelationships.com

South East Asia Jeff Vassel M 0061 421 684 444 E jeffv@geotechinfo.com.au W geotechinfo.com.au

National Adam Kemp P 0800 003 752 M 027 202 5137 E awk@hrassured.co.nz W enablehr.co.nz

National & Worldwide Nathan Bonney M 0275 393 022

E admin@iridium.net.nz

W iridium.net.nz

Auckland & National Ranesh Parmar / Nilesh Patel

P 021 502 223 P 021 761 733

E ranesh.parmar@ap.jll.com

E nilesh.patel@ap.jll.com

W jll.nz

National Nick Stevens / Dawn Engelbrecht

P 0800 546 528

E link@linkbusiness.co.nz

W linkbusiness.co.nz

National Nick Fletcher

P 0800 39 66 38 M 021 940 921

E nick.fletcher@myob.com

W myob.co.nz/franchise

Canterbury Tracey Gilmour

P 0-3-443 0088

M 027 265 7759

E josullivan@infinitywanaka.com

W ravenswoodcentral.co.nz

National Bradley Keys

P 0-9-551 6020 M 027 700 1555

E bradley@spaceworks.co.nz

W spaceworks.co.nz

National Peter Smythe P 0-9-577 4223

E info@speedysigns.co.nz

W speedysigns.co.nz

National Andrew Mitchell

M 021 801 115

E andrew@brandmachine.com

W brandmachine.com

Auckland & National Trish Blyth

Greater Auckland Area

P 0800 02 MEDIATE M 021 677 950

E trish@themediator.co.nz

W themediator.co.nz

Michelle Gain

P 0-9-526 3029

E michelleg@waipunahotel.co.nz

W waipunahotel.co.nz

We answer 5 common questions about franchising

Franchising 101

New Zealand is the most franchised country in the world. According to the 2021 Franchising New Zealand survey, there are 32,357 franchised units around the country – and the turnover of the franchise sector is equivalent to a massive 12 percent of our GDP. So just what is franchising, why does it work and is it for you?

1. What is franchising?

Franchising is a method of marketing and distribution whereby a company (called the franchisor) expands by granting a person or company (called the franchisee) the right to operate a copy of its business. The right will usually include the ability to use the name, the business system and the know-how of the franchisor, and is granted for a fixed term.

The franchisor usually gains his or her income from fees or product mark-ups 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 (including, for example, property, leasing or equipment costs) 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.

2. Is franchising reputable?

Franchising enables companies who 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 individuals the ability to go into business properly trained and equipped, with the security of a well-proven product and system behind them.

Franchising is a part of daily life in New Zealand. Many of our best-known brands are actually franchises: Lotto, Columbus Coffee, FreshChoice, Rodney Wayne and, of course, McDonald’s.

3. Why buy a franchise?

When you buy a well-developed franchise, you should enjoy many advantages. These include:

Product or service. The franchisor has already proved that the market exists. Franchisees are not risking their money on a new idea. System. The most efficient way of delivering the product or service has been developed and will be shared with the franchisee. Equipment. Franchisees start with the best equipment for the job and only the equipment they need – often specially-designed or developed. Suppliers. Bulk buying means franchisees benefit from lower prices and better service than independents.

Brand marketing. The company already has a name which attracts customers and makes marketing more effective.

Training. A franchisee can enter a brand new industry and be trained in how to run that specific business to best effect.

Support. The franchisor keeps a watchful eye on the progress of the business to help the franchisee grow at the right speed and avoid errors. Research & development. While the franchisee focuses on customer

service, the franchisor works on new products and techniques to ensure franchisees remain competitive.

4. Is it a fail-safe way to go into business?

No. Franchises may offer you a much greater chance of success than trying to go it alone, but no business venture is entirely without risk.

Franchises are not the same, any more than all shops are the same. Even within the same industry, each franchise will be set up differently. It will have different business systems, different cost structures, different support services for franchisees and, above all, different people – both as franchisors and franchisees.

If the franchise is properly structured, it is likely to be the individuals who make the difference. Common causes for franchisee failure include:

• Choosing a business for which they are not suited or equipped.

• Being under-capitalised from the start and unable to finance the growth of the business.

• Failing to take adequate legal and financial advice prior to purchase.

• Not following the franchise system.

• Taking too much money out of the business too soon.

• Being over-reliant on the franchisor rather than accepting that this is your business.

• Failure to act upon advice or make difficult decisions.

Franchisors can also make mistakes. The most serious ones which inexperienced franchisors make are:

• Being under-capitalised and unable to provide the necessary support.

• Not having properly developed and tested the systems.

• Not having a sustainable business structure which can provide a fair return for both franchisor and franchisee.

• Selecting the wrong location.

• Selecting the wrong franchisee.

That’s why, if you’re looking at buying a franchise, you need to choose carefully and take professional advice from a lawyer and an accountant who specialise in franchising (see page 72). They may charge a little more than a non-specialist, but they’ll take less time, probably have experience of the franchise you are looking at, know what to look for and give better advice.

5. Is it for me?

Franchising does not suit everyone. It does involve taking a risk, not having the security of a regular income, and being responsible for your own business. Do not rely upon the franchisor to make you successful. The franchisor will help, but basically franchisees are given the tools –the product, the system, the brand and the training – to enable them to get on with the job.

Success is up to the individual. As every successful franchisee will tell you: you only get out of the business what you put into the business. Remember that golden rule and you could have a great future as a franchisee.

Built on the foundations of fne cofee and fabulous food freshly prepared on site, Jamaica Blue ofers you the chance to own and run an award-winning café brand. Established in 1992 and owned by one of Australasia’s top Franchise groups, Foodco Group, Jamaica Blue’s name comes from the famous Jamaica Blue Mountains themselves, regarded as the home of the best cofee in the world.

Why Jamaica Blue?

• Autonomy and fexibility, backed by expertise

• Intensive training and feld support

• Ongoing mentoring on business and operations

• Contemporary, cool store designs

• Award-winning cofee and fresh, seasonal menus

• Year-round creative marketing campaigns to drive sales

• Strong local and International growth

The Next Steps

If you’ve always dreamed of your own café business, joining a brand like Jamaica Blue gives you the chance to own and run an award-winning café brand with a proven formula. Get in touch today!