What is franchising?

Franchising is a proven business model that allows a business (the franchisor) to expand by granting individuals or businesses (franchisees) the right to operate under its brand and system in a specific location for an agreed period. Franchisees own their businesses and benefit from the franchisor’s established brand, systems, and expertise, while the franchisor earns income through initial and ongoing fees and provides support to help franchisees succeed.

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A Trusted Business Model
For over 60 years, franchising has been one of the most dynamic methods of business growth worldwide. It enables businesses with strong products or services to expand quickly by leveraging the investment, local knowledge, and commitment of franchisees. For those seeking self-employment, franchising offers the security of a proven system, comprehensive training, and ongoing support - very different from pyramid selling or network marketing.

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Franchising in New Zealand
New Zealand is the most franchised country in the world per capita. According to the 2024 Massey University survey, the sector is worth over $47 billion, contributes around 11% to GDP, and employs more than 114,000 people. With over 500 franchise systems and nearly 30,000 units operating across diverse industries - from food and retail to health, education, and home services - franchising is a vital part of our economy and everyday life.

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Why Choose Franchising?
Starting a business independently carries significant risk, with many failing within five years. Franchising reduces that risk by providing a proven formula, brand recognition, and ongoing support. Franchisees benefit from advantages such as training, marketing, bulk purchasing, territorial exclusivity, and access to intellectual property. Most importantly, franchising is a true partnership—the franchisor’s success depends on the franchisee’s success, creating strong incentives for support and growth.