Buying a franchise can be a great move for an entrepreneur wanting to acquire a business model that has already proven itself. New Zealand is the most franchised country in the world according to data from Statistics New Zealand.

If you are interested in buying a franchise business, it is essential to do your research.

Always make sure you are aware of the fees involved, at both the start-up level and the ongoing level. Are there any other costs to be considered? What may pop up and surprise you a couple of years down the track? Talk to existing franchisees and find out their experiences.

What are the obligations and responsibilities that you will have as a franchisee?

Key things to consider:

  • Research franchising as a business format
  • Decide what Industry and type of role you are interested in
  • Understand the evaluation/recruitment process
  • Prepare for the interview
  • Complete a Site/Field Visit and talk to other Franchisees
  • Understand the contents of a Disclosure Document
  • Understand the contents of a Franchise Agreement

The Franchise Association of New Zealand (FANZ) offer a free Franchisee Pre-Entry training course to help you better understand franchising, your suitability for it and important information and guidance to consider when evaluating the purchase of a franchise opportunity.

We recommend seeking professional advice from lawyers and/or accountants that have experience with franchises and can go over things with you. We are happy to help you scope out any opportunities that you want to pursue.

Get in touch.

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