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.
