The franchising sector in New Zealand has doubled in size since 2003.
Franchising Sector in New Zealand
The franchising sector in New Zealand has doubled in size since 2003 (by number of units) as
New Zealanders are highly aware of international brands and keen to adopt new ideas and
New Zealand has one of the highest rates of franchise systems per capita globally, with around
450 systems and 23,600 franchise units. Since the 1990s people are better informed about
franchising and a good range of new, mature, local and international franchises have been
established in New Zealand. Thirty-eight percent of franchise systems operate in service
industries, representing over 50% of franchise units. Food and beverage franchises also do well
in the market. The median number of units per franchise system is 21.
ξ Mobile service franchises have found great success in New Zealand. Some areas of the
mobile services sector, such as lawn mowing and gardening services now experience a lot
of competition, but still see growth as these services become more popular. The limited
overheads in this type of business model are advantageous to franchisees in such a
geographically spread country as New Zealand.
ξ Good food franchises do well in New Zealand. Local tastes need to be considered and the
trend towards healthy eating is a key factor to consider.
ξ Leisure and education franchises have experienced growth, with more room still for
leisure and fitness franchises. New Zealanders like to keep active, with convenience and
price being important factors in their choice of activities.
Latest export opportunities – Business & Consumer Services
Latest export opportunities – New Zealand
Getting into the market
There is no specific legislation for franchises in New Zealand and they currently operate under
the same commercial law as other businesses. The Health and Safety Act, Fair Trading Act,
Employment Act and the Consumer Guarantees Act should be carefully considered.
The main growth strategies used by franchisors include offering exclusive territories, converting
independents and encouraging multi-ownership for successful franchise operators.
Challenges noted by franchisors include the recruitment of franchisees, followed by the
maintenance of standards and accessing franchisee capital.
More about doing business in New Zealand
Market intelligence is critical when doing business overseas and UKTI can provide bespoke
market research and support during overseas visits though our chargeable Overseas Market
Introduction Service (OMIS).
To commission research or for general advice about the market, get in touch with our specialists
based overseas - or contact your local international trade team.
ξ Barbara Harris, British Consulate-General Auckland. Tel: +64 (0) 9 303 5018 or email:
ξ Deirdre Bonis, British Consulate-General Auckland. Tel: +64 (0) 9 303 5015 or email:
Contact your local international trade team
UKTI runs a range of events for exporters, including seminars in the UK, trade missions to
overseas markets and support for attendance at overseas trade shows.
Latest events – Business & Consumer Services
None at present.
More about OMIS and other UKTI services for exporters