Big Business, Kiwi Scale: Franchising Leads the Way in New Zealand

Franchising isn’t a niche in New Zealand – it’s one of the engines of the economy, packaged in a very Kiwi small-business format. The latest Franchising New Zealand 2024 survey estimates 546 business format franchisors operating 29,750 units around the country, directly employing more than 114,000 people. Sales turnover from business format franchising alone is put at $47.2 billion, rising to $73.4 billion when you include motor vehicle and fuel retail franchises.

For a country of just over five million people, that’s extraordinary. It’s one of the reasons New Zealand is regarded as the most franchised nation per capita in the world.

Big business, small-business feel

Most of these brands are not giant corporates – they’re small businesses in franchised form. The median franchise system has just 22 units, and 70% of franchisors operate zero or one company-owned site, preferring to grow by backing local owners.

That creates an attractive entry point for people looking to own a business with support. Median start-up costs for a new franchise have actually fallen over the last three years – from $150,000 in 2021 to $120,000 in 2024  with strong clusters of opportunities around the $50k, $100k and $200k marks. In other words, franchising is big business in impact, but often surprisingly accessible in investment.

Celebrating Kiwi franchise excellence

This year’s Franchise Association of New Zealand awards again underlined the strength of home-grown brands.

Our own clients were strongly represented across the finalists and long-tenure honours. Flooring Design, Kitchen Studio and Exceed all featured among the standout brands and franchisees recognised on the night, while Rodney Wayne (Rodney himself inducted in 2023 into the Hall of Fame group as one of the pioneers of New Zealand franchising) was represented by a number of franchisees with more than 20–35 years in business.

These stories echo the three fundamentals that long-term successful franchises share: enduring consumer demand for the brand, sound single-unit and system economics, and a well-resourced, continually evolving franchise system behind the scenes.

What this means if you’re considering franchising

For aspiring business owners, the picture is clear:

• You’re not stepping into an experiment,  you’re joining a sector with decades of data, mature systems (80% of New Zealand franchises have been operating for more than 10 years), and franchisors who increasingly invest in technology, sustainability and training.
• You can combine the independence of owning your own small business with the brand strength, marketing power and know-how of an established network.
• And by choosing a Kiwi-founded system, you’re often tapping into local insight, local supply chains and a brand that already means something to the community you’ll serve.

Franchising might be big business in New Zealand, but at its heart it’s still about people: customers who trust a brand, franchisors who keep evolving the system, and franchisees building a better future for themselves and their whānau.