Find a Popular Franchise in New Zealand

Popular Franchises in New Zealand

Are you considering buying a franchise in New Zealand? Find some of the most popular areas of business and the franchises available, from restaurants and cafes to health centres, gyms and retail outlets.

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So, you've learned franchise opportunities - what they are, how they work and how you can get involved in running your own franchise business - but where to from here? If you're based in New Zealand, there are an increasing number of businesses available to run as a franchise. Whatever your area of interest, there will be something to suit; franchises span a diverse range of commercial areas, including fast food restaurants, cleaning companies, cafes, retail outlets and service stations.

Popular franchises in New Zealand are companies with:

Brand Recognition
The success of a franchise rests heavily on the reputation of its brand. This is also its strength; from the moment its doors open, the business has credibility based on its brand. Franchising as a way of doing business was first established in the fast food industry - led by that golden arched giant, McDonald's. Today, you can walk into any McDonald's and, even though it may sell the same burgers as other McDonald's restaurants around the world, you'll be dining at a locally owned McDonald's franchise.

Profitability
Industries with speedy operations and high levels of efficiency make excellent franchises, as they are usually quite profitable. Fast food restaurants have a high turnover of diners and the ability to produce menu items quickly and at low cost; car cleaning outfits can operate drive-through facilities, meaning fast, no-fuss, low-space services; and lawn mowing franchises can carry out a quick, handy service for home and business owners.

A Niche Market
Businesses that capture a niche market can hold a strong place within the commercial sector. The relatively small size of such a market makes it easier for a well-run company to become successful and forge a dominant commercial position for itself.

Simplicity
Simplicity is often the key to a successful franchise business. Who would have thought that a fast food restaurant where you can choose your own bread and sandwich fillings would be so profitable? The simplicity of Subway's idea and the ease of operation make it a sound franchise model - there is little equipment required, the concept is a simple one and virtually anyone can learn to become a ‘sandwich artist'.

Competitive Advantage
Not only must a franchise have a simple, sellable idea - it needs to have a substantial advantage over its competitors. In some cases, the company will find an untapped niche market (as mentioned earlier) while in others, the franchisor will manage a portion of the administration of the business, leaving the franchisee to carry out the day to day tasks. A franchise also reaps the benefits of the franchisor's marketing campaigns - although this can work against a franchise, for example if it is perceived as part of a large multinational corporation, rather than as a local business.

Today, around 70% of franchise businesses sold are locally owned. Gone are the days of American enterprise dominating the New Zealand franchise market; many local entrepreneurs are now taking advantage of the franchise model.

Here are some franchise opportunities in New Zealand:

Restaurants and cafes
The food industry still holds a large share of the franchise industry in New Zealand - but many of the big names are owned by just one master licensee. There are still many franchises available, though, and you can enter this market at the affordable cost of $25,000. While there is the opportunity to make money within this sector, you'll need to be prepared for hands-on management, including staff training, rostering and high staff turnover. Some of the popular food franchises in New Zealand include:

Lollipop's Playland and Cafe, Esquires Coffee Houses, Long John Silver Fish and Chips, The Coffee Club, Hell Pizza, Columbus Coffee, BurgerFuel, Cobb & Co, Robert Harris Cafe, Subway, The Loaded Hog, Valentines Restaurant.

Real Estate and Property
While the real estate market has seen some fluctuations in recent months, there have also been times of great prosperity in the selling of property. ‘People skills' are essential in this industry, as is some marketing nous and a good dose of determination. As well as house sales, there are also a number of franchises in related areas - kitset homes, property management, building inspections and mortgages. Some popular New Zealand franchises include:

Lockwood Homes, Quinovic Property Management, Mike Pero Mortgages, The NZ House Inspection Company, Harveys Real Estate, Ray White Real Estate, GJ Gardner Homes, LJ Hooker, Harcourts.

Home Services
If you decide to open a home service franchise, you'll be spoilt for choice: there are over 2,000 franchise choices available. Some will allow you to operate independently, while others are run by a master franchisee who is answerable to a national franchisor. Investment in this sector can be very affordable - as little as $10,000 - with equipment and vehicle at additional cost. There is also a ‘work guarantee' with some franchise businesses, guaranteeing you will be provided with a certain value of work each week. This is a great security net for those feeling hesitant about taking the leap into self-employment. Consider these popular New Zealand home service franchises:

Jumping J-Jays, Cleancorp, Green Acres, Hire a Hubby, Jim's Mowing, VIP Home Services, UVTEC, Select Cleaning, Green Cleen, HomeTech, It's Grass, @ Your Request.

Health and Beauty
The health and beauty sector is growing internationally - largely thanks to an aging population and an increasing demand for beauty treatments and fitness centres. Choose from a wide range of franchises, from beauty therapy day spas to hair salons, cosmetic treatment centres, gyms and massage outlets. The cost of buying a franchise in this industry varies greatly; an individual can establish their own beauty business for as little as $15,000, but a fitness club or medical centre will cost a great deal more (including premises, staff, training and equipment). These are some of the popular health and beauty franchises in New Zealand:

Caci Medispa, Rodney Wayne, Club Physical, Beauty on Demand, Hardy's Healthy Living, Contours, Visique.

Auto Servicing
With increasing pressure to have clean-running, efficient vehicles on the road and the ongoing requirements of Warrant of Fitness tests, automobile servicing and repair is a good franchise choice. You can choose between fixed outlets (offering services from a specific location) or mobile service providers (mainly working in conjunction with garages, car yards or car rental outfits). For a New Zealand automobile franchise, you'll need between $40,000 and $180,000 for a fully outfitted service centre. You should also have some basic knowledge of vehicles , but any mechanical repairs can be carried out by professionals so your role will be focused on sales and management. Popular franchise choices in New Zealand are:

Pit Stop, The Touch Up Guys, Honda, Midas New Zealand, Snap-on Tools, Mag and Turbo Warehouse, Super Shuttle, Pegasus Car Rentals.

Retail outlets
Chain stores dominate the market in New Zealand, but this doesn't mean retail franchises are out of the question. Be aware, though, that prices are dictated by larger chain stores such as The Warehouse and Briscoes. With a retail franchise, a good location, premises of an appropriate size and a niche in the local market are all vital. Retail franchises offer you the chance to own multiple outlets, but you'll need to bring skills to the table to deal with finances, administration, management - and customers! Once you have built up your franchise outlet, you'll be able to become less hands-on and leave the daily running of your business to a management team and good staff. Popular choices for retail franchises in New Zealand are:

Para Rubber, Holy Sheet!, Caltex and Star Mart, Cartridge World, Liquorland, Dymock's, Bakers Delight, Video Ezy, The Athlete's Foot, Gemtime Jewellers, Paper Plus.

Before you commit to any franchise or business opportunity, make sure you contact a financial advisor to look over everything with you.

Looking for more information? Find a popular franchise opportunity in the NZS.com directory.

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Business images from Flickr: Subway Store, New Zealand Flag and Wellington Buildings.