22
Franchise New Zealand | Autumn 2026 | Year 35 Issue 01
Running a Franchise
Westpac’s Daniel Cloete explains why
financial literacy is just as important as
running a great operation
MANAGE
YOUR
FINANCES
Franchising is often seen as a more structured and lower risk way to
own a business. You buy into a recognised brand, follow proven systems,
receive structured training, and get ongoing support. All of this can reduce
uncertainty, especially in the early stages of business ownership.
From a banking perspective, however, one thing remains true – the success
of a franchise still depends on the person running it. A franchise system can
provide structure, tools, and guidance, but it cannot manage the business
on your behalf. Strong operations matter, but financial understanding is what
keeps a franchise business stable, resilient, and sustainable over time.
Manage for success
Banks see the same pattern time and again. Businesses rarely fail because
the idea is bad. They fail because management is weak. While funding is
important, it is the owner’s ability to plan, track performance, manage people,
and control finances that determines long term success.
Business ownership requires more than knowing how to deliver a product
or service. Franchisees often need to manage cash flow, staff, compliance,
suppliers, and decision making under pressure.
From a lender’s point of view, good management shows up in clear planning,
realistic expectations, and early action when something is not going to plan.
Well managed businesses are structured, disciplined, and better prepared
for change.
How franchising makes management easier
One of the biggest advantages of franchising is the structure it provides.
Strong franchise systems invest heavily in building and refining their business
model before offering it to franchisees. This usually includes clear operating
procedures, formal training, performance standards, and ongoing support.
These systems do not remove the need for good management, but they
reduce complexity. Franchisees do not need to design processes from
scratch or learn everything through trial and error. Instead, you can focus on
leading the business, managing people, and improving performance.
Franchising also gives franchisees access to shared experience. Being part
of a network means learning what works, what doesn’t, and how to avoid
common mistakes. This shared knowledge shortens the learning curve and
improves consistency across the brand.
From a banking perspective, strong franchise systems reduce risk because
they support better decision making and more consistent outcomes.
Better information leads to better decisions
Good management depends on having the right information at the right time.
Modern franchise systems usually provide tools that give franchisees clear
visibility over sales, costs, staffing, inventory, and customer activity.
Instead of waiting for year-end or month-end reports, try to review
performance regularly and spot issues early. This allows problems to be
addressed while they are still manageable.
When information is clear and timely, decisions improve. You can plan more
accurately, control costs more effectively, and respond faster to changes in the
business. From a bank’s perspective, businesses that actively use performance
information tend to be better managed and more financially stable.
With over 160 Quest Apartment Hotels across
New Zealand, Fiji and Australia, we’re always
your home away from home. Whether it’s a
business trip or family holiday, our spacious
apartments feature separate living, dining, and
sleeping areas, full kitchens, and laundry facilities.
With flexible stays, friendly housekeeping, and
Airpoints™ rewards, we make sure you truly
feel at home, no matter how long you stay.
QUESTAPARTMENTS.CO.NZ
Your home away
from home.
Experience has taught us
the power of efficiency
Find us online:
asco.co.nz
Helping you
navigate franchising
law with confidence
We specialize in franchising law, offering expert
guidence to navigate its complexities with confidence.
With a history in the field, we’re often called upon
to author resources for a market-leading publisher.
Whether you're a franchisor or franchisee, it’s our
business to make your franchising business solid
by helping you understand the finer details.
Call Alistair van Schalkwyk
in the first instance on 09 308 8071
or email alistair@ascolegal.co.nz
Contact