June 11, 2025 • 8 mins
As more people take the leap to owning their own businesses, many seem to be buying into already established brands.
Data suggests the business of franchising and owning established brands is booming, with around 30,000 franchise unites currently existing nationwide.
Association CEO Katrina King told Kerre Woodham they see franchising as being in business for yourself, but not by yourself.
She says as a franchisee you’re part of a system, but you’re very much still a small business in your local community.
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Episode Transcript
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Speaker 1 (00:09):
You're listening to a podcast from News Talk SEDB. Follow
this and our wide range of podcasts now on iHeartRadio.
Speaker 2 (00:16):
Following on from our discussion yesterday about being your own
boss and making the leap to own your own business,
today is World Franchise Day. Data suggests the business of
franchising and owning established brands as booming. The industry has
a net worth of forty seven billion dollars, representing almost
eleven percent of New Zealand's GDP. There are currently around
(00:37):
thirty thousand franchise units nationwide, with research showing their still
room for growth. CEO of the Franchise Association New Zealand,
Katrina King joins me. Now, good morning, Good.
Speaker 3 (00:49):
Morning Carrie, and happy World Franchise Day.
Speaker 2 (00:51):
I was just about to say that you beat me talking. Hey,
we were talking about small business yesterday and about making
the move from being a paid employee to owning your
own business, and somebody was talking about franchises then, so
another person said, well, a franchise e isn't really owning
your own business. You're working still for somebody else because
(01:13):
they get to clip the ticket no matter how successful
you are. Is that a fair comment?
Speaker 3 (01:20):
No? I don't agree with that. I mean, we see
franchising as being in business for yourself, but not by yourself.
So essentially, as a franchisee, you are part of a system, absolutely,
but you are very much a small business in your
local community and ye are just supported by a franchise system.
Speaker 2 (01:38):
So is there a does it depend on which franchise
you buy into, depending on how much of your income
goes to the to the main franchise owner, or is there.
Speaker 3 (01:49):
A standard race relatively relatively consistent. Each franchise system will
have their own way of working in their own fees
and have they work with their franchisees, but across the
board it's fairly consistent.
Speaker 2 (02:01):
Okay, and who mainly buys the franchises.
Speaker 3 (02:06):
The franchisees. So we see as people coming out of
perhaps corporate employments, people looking for a career change. Sometimes
couples want to go into business together and they think, well,
if we were to start something completely from scratch, you know,
there's a lot to do, there's a lot to know.
But if you're buying into an established franchise brand, then
it comes with a lot of systems, a lot of
(02:27):
support obviously the brand and you know which is all
good for starting your own business.
Speaker 2 (02:33):
Are there any protections for people who come in and
buy into a franchise and sort of use family to
undercut labor rates things like that.
Speaker 3 (02:47):
Well, as an association, we have a code of practice
and ethics that all of our members are scrutinate against.
So there's some really good things in there around dispute resolution,
calling off periods, and a complaints process for franchisees. I
know our big systems are really good at keeping a
tab on their franchisees and making sure that things are
running well, that they're operating to best practice. So yeah,
(03:10):
I think we're doing everything we can to look out
for that.
Speaker 2 (03:14):
When it comes to the amount of work you have
to put in, is it true? Is it true of
any small business that the harder you work, the better
your returns, And the better you work, the better your returns.
Speaker 3 (03:27):
Yeah? I think so. I think that applies to any
small business, regardless of whether you're franchised or not, you know,
and most small business owners really do put their heart
and soul into it, and I think that's where the
success comes from. So I think sometimes people come into
two franchising thinking it's a lifestyle choice, and it is absolutely,
but it doesn't mean that you can just sit back
and let it happen.
Speaker 2 (03:48):
Do you have obligations to the main you know, the
franchise owner.
Speaker 3 (03:54):
Yeah, as a franchise e, there will be things laid
out in your franchise agreement, and again that depends on
the system and how they report and what they're looking
for within that particular franchise system.
Speaker 2 (04:06):
What's the difference between a franchise e and member of
a cooperative?
Speaker 3 (04:11):
That's probably not something I think comment on specifically. It's yeah,
there's a number of different ways that things can be
structured to Franchising is one, co option is another, licensing
is another, and then obviously corporate owned is another. So yeah,
there's subtle nuances between all of those.
Speaker 2 (04:31):
Okay, okay, And when it comes to the growth of
the franchise it how do you know that your business
is one that would benefit from having franchises rather than
just selling it.
Speaker 3 (04:45):
On Yeah, so I think if you're in business, and
whether that's a cafe, whether that's a pilate studio or anything.
I mean, obviously seventy percent of New Zealand's franchise brands
are homegrown. So that's a lot of Kiwis that have
started something from scratch and then gone, I think we
can grow this. So it's whether you want to fully handover, sorry,
(05:08):
grow the business and have your own stores and your
own employees, or whether you want to actually start creating
little small businesses within that to spread your network. So
again that comes down to what industry you're in, I think,
and really how you want to run that business.
Speaker 2 (05:23):
Yeah, it would be. Really, it would be like a
whole other set of skills, wouldn't it to take your
business and turn it into something that could be franchised nationally?
Speaker 3 (05:36):
Yeah, it is. And again on the flip side, you know,
not everyone is going to sit franchising. In terms of
someone you're wanting to have a small business, you know,
you have to look at it. We have a great
pre entry franchise e training that someone can do. Okay,
so yeah, that's available in our website, and it's to say,
you know, is franchising for me? Is this something that
I think I could do? Because it is a different
(05:56):
skill set absolutely, whether you're a franchise or a franchise
e in terms of moving into that with your business.
Speaker 2 (06:04):
And what kind of obligations are put on you by
the franchise, by the by the licensee, by the licensing agent.
Speaker 3 (06:14):
So this is if you're a franchising Yeah, yeah, Again
that varies completely by by agreements. As an association, we
don't specifically you know, monitor franchise agreements as we have
them uphold code of practice and ethics. So there's certain
things that need to be in there from our association's
point of view to make sure that's franchising best practice.
(06:36):
But how a system runs there supply chain or marketing
or the likes is often very specific to that system.
Speaker 2 (06:43):
Right and along with growth, does it mean that not
only there could be Kiwi businesses that could become franchise operations,
but does it mean that there are franchises going begging
that that there are you know, franchises that need people
to step into them across that membership.
Speaker 3 (07:05):
I think there's Again it depends on the end of
Some industries are having no issue finding franchises who want
to step into that business. Others are finding it a
little bit harder. Sometimes that can be the upfront capital
investment that's required. You know, if you're moving into cleaning
services where it's really the man in the van. That's
obviously low investment. But if you're wanted to start a
(07:25):
gym or a cafe, there's got to be a lot
more upfront investment and there's definitely people who want to
do that, but it just depends on the industry as
to what demand is there at the moment.
Speaker 2 (07:36):
And there's a website people can go to to see
what's out there if they're sitting at their desk at
their corporate job thinking no, this isn't for me. I
need something, I need something more, and where can they
go to start browsing.
Speaker 3 (07:49):
So we have our website Franchise Association dot org dot
zed and a directory there and then that takes you
through also to the Franchise New Zealand Media website which
has a full directory of available franchise systems and that's
franchised to CO dot zed.
Speaker 2 (08:05):
Magnificent, Happy World Franchise Day, Katrina. Thank you for your time.
Speaker 3 (08:10):
Thank you so much, Thank you so much, Krie I
got good day.
Speaker 1 (08:12):
Bye for more from News Talk sed B. Listen live
on air or online and keep our shows with you
wherever you go with our podcasts on iHeartRadio
You're listening to a podcast from News Talk SEDB. Follow
this and our wide range of podcasts now on iHeartRadio.
Speaker 2 (00:16):
Following on from our discussion yesterday about being your own
boss and making the leap to own your own business,
today is World Franchise Day. Data suggests the business of
franchising and owning established brands as booming. The industry has
a net worth of forty seven billion dollars, representing almost
eleven percent of New Zealand's GDP. There are currently around
(00:37):
thirty thousand franchise units nationwide, with research showing their still
room for growth. CEO of the Franchise Association New Zealand,
Katrina King joins me. Now, good morning, Good.
Speaker 3 (00:49):
Morning Carrie, and happy World Franchise Day.
Speaker 2 (00:51):
I was just about to say that you beat me talking. Hey,
we were talking about small business yesterday and about making
the move from being a paid employee to owning your
own business, and somebody was talking about franchises then, so
another person said, well, a franchise e isn't really owning
your own business. You're working still for somebody else because
(01:13):
they get to clip the ticket no matter how successful
you are. Is that a fair comment?
Speaker 3 (01:20):
No? I don't agree with that. I mean, we see
franchising as being in business for yourself, but not by yourself.
So essentially, as a franchisee, you are part of a system, absolutely,
but you are very much a small business in your
local community and ye are just supported by a franchise system.
Speaker 2 (01:38):
So is there a does it depend on which franchise
you buy into, depending on how much of your income
goes to the to the main franchise owner, or is there.
Speaker 3 (01:49):
A standard race relatively relatively consistent. Each franchise system will
have their own way of working in their own fees
and have they work with their franchisees, but across the
board it's fairly consistent.
Speaker 2 (02:01):
Okay, and who mainly buys the franchises.
Speaker 3 (02:06):
The franchisees. So we see as people coming out of
perhaps corporate employments, people looking for a career change. Sometimes
couples want to go into business together and they think, well,
if we were to start something completely from scratch, you know,
there's a lot to do, there's a lot to know.
But if you're buying into an established franchise brand, then
it comes with a lot of systems, a lot of
(02:27):
support obviously the brand and you know which is all
good for starting your own business.
Speaker 2 (02:33):
Are there any protections for people who come in and
buy into a franchise and sort of use family to
undercut labor rates things like that.
Speaker 3 (02:47):
Well, as an association, we have a code of practice
and ethics that all of our members are scrutinate against.
So there's some really good things in there around dispute resolution,
calling off periods, and a complaints process for franchisees. I
know our big systems are really good at keeping a
tab on their franchisees and making sure that things are
running well, that they're operating to best practice. So yeah,
(03:10):
I think we're doing everything we can to look out
for that.
Speaker 2 (03:14):
When it comes to the amount of work you have
to put in, is it true? Is it true of
any small business that the harder you work, the better
your returns, And the better you work, the better your returns.
Speaker 3 (03:27):
Yeah? I think so. I think that applies to any
small business, regardless of whether you're franchised or not, you know,
and most small business owners really do put their heart
and soul into it, and I think that's where the
success comes from. So I think sometimes people come into
two franchising thinking it's a lifestyle choice, and it is absolutely,
but it doesn't mean that you can just sit back
and let it happen.
Speaker 2 (03:48):
Do you have obligations to the main you know, the
franchise owner.
Speaker 3 (03:54):
Yeah, as a franchise e, there will be things laid
out in your franchise agreement, and again that depends on
the system and how they report and what they're looking
for within that particular franchise system.
Speaker 2 (04:06):
What's the difference between a franchise e and member of
a cooperative?
Speaker 3 (04:11):
That's probably not something I think comment on specifically. It's yeah,
there's a number of different ways that things can be
structured to Franchising is one, co option is another, licensing
is another, and then obviously corporate owned is another. So yeah,
there's subtle nuances between all of those.
Speaker 2 (04:31):
Okay, okay, And when it comes to the growth of
the franchise it how do you know that your business
is one that would benefit from having franchises rather than
just selling it.
Speaker 3 (04:45):
On Yeah, so I think if you're in business, and
whether that's a cafe, whether that's a pilate studio or anything.
I mean, obviously seventy percent of New Zealand's franchise brands
are homegrown. So that's a lot of Kiwis that have
started something from scratch and then gone, I think we
can grow this. So it's whether you want to fully handover, sorry,
(05:08):
grow the business and have your own stores and your
own employees, or whether you want to actually start creating
little small businesses within that to spread your network. So
again that comes down to what industry you're in, I think,
and really how you want to run that business.
Speaker 2 (05:23):
Yeah, it would be. Really, it would be like a
whole other set of skills, wouldn't it to take your
business and turn it into something that could be franchised nationally?
Speaker 3 (05:36):
Yeah, it is. And again on the flip side, you know,
not everyone is going to sit franchising. In terms of
someone you're wanting to have a small business, you know,
you have to look at it. We have a great
pre entry franchise e training that someone can do. Okay,
so yeah, that's available in our website, and it's to say,
you know, is franchising for me? Is this something that
I think I could do? Because it is a different
(05:56):
skill set absolutely, whether you're a franchise or a franchise
e in terms of moving into that with your business.
Speaker 2 (06:04):
And what kind of obligations are put on you by
the franchise, by the by the licensee, by the licensing agent.
Speaker 3 (06:14):
So this is if you're a franchising Yeah, yeah, Again
that varies completely by by agreements. As an association, we
don't specifically you know, monitor franchise agreements as we have
them uphold code of practice and ethics. So there's certain
things that need to be in there from our association's
point of view to make sure that's franchising best practice.
(06:36):
But how a system runs there supply chain or marketing
or the likes is often very specific to that system.
Speaker 2 (06:43):
Right and along with growth, does it mean that not
only there could be Kiwi businesses that could become franchise operations,
but does it mean that there are franchises going begging
that that there are you know, franchises that need people
to step into them across that membership.
Speaker 3 (07:05):
I think there's Again it depends on the end of
Some industries are having no issue finding franchises who want
to step into that business. Others are finding it a
little bit harder. Sometimes that can be the upfront capital
investment that's required. You know, if you're moving into cleaning
services where it's really the man in the van. That's
obviously low investment. But if you're wanted to start a
(07:25):
gym or a cafe, there's got to be a lot
more upfront investment and there's definitely people who want to
do that, but it just depends on the industry as
to what demand is there at the moment.
Speaker 2 (07:36):
And there's a website people can go to to see
what's out there if they're sitting at their desk at
their corporate job thinking no, this isn't for me. I
need something, I need something more, and where can they
go to start browsing.
Speaker 3 (07:49):
So we have our website Franchise Association dot org dot
zed and a directory there and then that takes you
through also to the Franchise New Zealand Media website which
has a full directory of available franchise systems and that's
franchised to CO dot zed.
Speaker 2 (08:05):
Magnificent, Happy World Franchise Day, Katrina. Thank you for your time.
Speaker 3 (08:10):
Thank you so much, Thank you so much, Krie I
got good day.
Speaker 1 (08:12):
Bye for more from News Talk sed B. Listen live
on air or online and keep our shows with you
wherever you go with our podcasts on iHeartRadio
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