According to a report compiled by Franchising New Zealand, the franchise sector has grown by around 67 per cent in the last five years to reach an annual turnover of $46.1 billion. The growth was largely put down to the political stability and subsequent economic strength enjoyed by New Zealand.
185 new brands entered the market from the time the last report was conducted, in 2012. 72 per cent of the 631 franchise brands are New Zealand owned. The report estimates 37,000 business format franchises operating nationwide, proving employment to almost 125,000 people.
Dr Susan Flint-Hartle, author of the report, also claimed that rising immigration levels were a cause of franchise expansion. The most common owners of franchises are originally from the United Kingdom, South Africa, India and China.
“New migrants arrive in New Zealand with equity and they want to use it to create an income. Franchise businesses offer them a lower risk path into owning their own business because all the systems are already in place,” Flint-Hartle said.
