Chairman's Message

Welcome to the dynamic world of franchising.  I continue to be impressed by the diverse and talented group of individuals involved in this sector.  The ability of franchisors to respond and adjust more quickly than the corporate world will certainly help in these trying times.

Our legal framework

Franchising in New Zealand operates in an environment where there is no specific franchise legislation, but all businesses – including franchising – are governed by general commercial law, and the many other laws relating to employee and consumer issues. Members of the Association, however, operate under voluntary Codes designed to encourage the best practice in franchising.

Member Benefits

The Association's Board is working to bring greater benefits to members and increase the value of membership. Perhaps the greater value of your membership, however, is the networking opportunities with other members, sharing your experiences and strategies that will help your business not only to survive but thrive. Greater emphasis is being placed on education and we will continue to offer seminars, conferences and opportunities for members to increase their learning and information that will assist their businesses.

In the current environment

Franchisors need to practice greater diligence in franchisee selection, ensure they do not “over sell” and under deliver on promises and any proposals need to be carefully presented to ensure the lending banks continue to see franchising as a viable proposition. Many of the successful and established franchise systems continue to target and experience network growth.  More recently, however, a greater emphasis is being seen on the innovation and improvement of systems, structures and internal efficiencies in order to drive overall business profitability and sustainability of franchisees.

Supporting and retaining existing franchisees through the next 12 – 18 months will be a critical responsibility for franchisors.As a franchisee, running your own business, making the key decisions and being in charge of your own future is exceptionally challenging and rewarding - never more so than in today's economic environment.

Franchising around the world

At the recent meeting of the World Franchise Council, franchise associations from many nations reported continuing growth in franchising as a preferred method of doing business.  Many countries reported that their governments are now recognising the contribution that franchising makes to their economies, employment levels and GDP and accepting that the success of their franchising sector is integral to the recovery from the current recession.

Be part of the self regulation community

The board is committed to increasing awareness of the benefits of being a member, promoting best practice in franchising and prior disclosure to prospective franchisees.  I would encourage all non-members to seriously consider the advantages of membership and we welcome your interest.

Estelle Logan
Chairman