Franchise NZ - Autumn 2025

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Autumn 2025 Year 34 Issue 01 $8.95

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PUTTING PEOPLE in BUSINESS

As we wind down the summer that has seemed to keep on giving, the

mood at Franchise New Zealand HQ is high. Our top team began 2025

with a bang and is poised for a year of accelerated success as the

economy improves and franchising forges forward after an extended

period of challenge for business.

This quarter, we delve into the possibilities and promise of AI. With a

contingent of Kiwis having recently travelled to the 2025 International

Franchise Association convention in Las Vegas, forward thinking

for franchising rose to the fore for this issue, with a cover topic on

advancing technology, in particular, the applications and accelerated

use of AI. Many New Zealand-based franchises have already been

adopting and adapting this, for a raft of purposes. We explore some of

the successes, challenges and opportunities for AI integration across

the franchise sector. If your franchise has experiences to share in this

area, we’d love to hear from you as we inevitably follow up this ever-

evolving area of business technology.

Our offerings in this autumn issue also include an in-depth look at

the results of the recent prospective franchisee survey. What do these

findings suggest potential franchise buyers really want in 2025? Find

out on page 28.

At Franchise New Zealand media we pride ourselves on being an

integral part of this country’s franchising community and love sharing

the colourful stories of Kiwis’ journeys across this business format.

As always, we share news and views from many of the leaders in this

field, with updates on new additions to franchising in Aotearoa and

opportunities available. As well as helping readers stay abreast of

the issues affecting the sector, we always enjoy finding the time to

celebrate successes. We hope these inspire you to achieve more of

your own success and share it through our pages in future issues.

Our designer and art director Stu

Sutherland is the man behind

this issue’s front cover, featuring

Franchise Accountants’ Philip

Morrison with Driving Miss Daisy

franchisee Richard Lu. Richard has

a keen interest in the applications

of AI as an early adopter of the

technology for his two franchises

and shared his insights in our

cover feature. We hope the carpool

karaoke vibe brings a smile and

piques your interest to read our

cover feature and delve into all we

have to offer this season.

Here’s to continued success this year for all – keep following your

franchising dreams!

Call 0800 FRANCHISE or visit franchise.co.nz to request additional free print

copies, for you or your contacts, or to read a digital copy - sharing’s caring!

Heather Barker Vermeer

Editor, Franchise New Zealand Media

AUTUMN, AI, A-TEAM...

Franchise New Zealand team:

Heather Barker Vermeer,

Sally Knight, Anna-Marie Staples,

Caitlin Chatterley

and Stuart Sutherland

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Disclaimer

All franchise and business opportunity features included

within this publication are paid advertorial approved by the

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Inclusion of any franchise system, business opportunity or

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Westpac Directory of Franchising

Over 275 different franchises

Franchise and Business Opportunities

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Other Services

Cover image and cover story image (p6) - Stuart Sutherland - Smokeylemon

6 Future thinking

AI in NZ franchising

11 Post-Covid success

From hospitality novices

to The Coffee Club

award winners.

12 Guaranteed income?

What importance should

you place on a work or

income guarantee?

13 Nothing to lose

After 11 years, V.I.P.

franchisee has nothing but

praise for her investment.

15 Property management –

the franchise for you?

Quinovic Property

Management has

room for new franchise

opportunities across NZ.

16 Franchise News

Latest news from the

world of franchising…

19 A driving force for

success

Franchise Accountants

is a driving force behind

many franchises.

20 Moving to the regions

Regional businesses

can be more profitable

with less stress, too.

23 Nurturing a thriving

community

Coffee Culture is

expanding and bringing

its unique magic north.

24 Thinking of buying a

franchise business?

Daniel Cloete from Westpac

looks at questions to ask

to become an educated

franchise buyer.

27 Keeping customers loyal

Tranxactor provides the

technology behind strong

customer connections.

28 What do franchise buyers

really want?

We asked prospective

franchisees across Aotearoa.

30 New CEO for FANZ

Welcoming new CEO Katrina

King to the organisation.

32 User-friendly platform

makes onboarding easy

Leading brands appreciate

the time-saving power

of The Induction App.

33 Questions to ask

franchisees

Want to know what a

franchise is really like?

Ask the people who are

already involved.

37 Unleash your passion

for retail

FreshChoice is the

franchise that places

you at the heart of

your community.

40 How to evaluate a low

investment opportunity

Franchising can offer an

inexpensive way to go into

business with some real

support behind you.

43 Lessons from past

and future

Dr Callum Floyd of Franchize

Consultants takes a

franchise-focused road trip.

45 Better than a rental

Landlords turning to Speed

Queen laundromats to

provide good returns.

46 Who goes where?

How do franchisors work

out what is a viable

territory for a franchisee?

49 Generative AI &

franchising:

Wynn Williams explores

balancing efficiency and risk.

50 What can you afford?

Philip Morrison explains

how to evaluate your

own financial position.

53 Helping franchise

businesses

really deliver

How Aramex New Zealand

is helping franchise

networks go the extra mile.

55 Danger Signals

Beware – some business

opportunities may not

be all they seem.

57 Make the most of your

speciality

Salespeople, project

managers, analysts

and more are thriving

with ERA Group.

58 Seven things your lawyer

should tell you

Scott Goodwin outlines

what your lawyer

should tell you before

buying a franchise.

60 Westpac Directory of

Franchising

Guide to 275+ franchise

opportunities, advisors

and advertiser index

74 Make your

advertising count

Franchise New Zealand

media knows

franchising and is

proving it with results.

Welcome to New Zealand's BUY YOUR OWN BUSINESS magazine

Autumn 2025

WHAT DO

FRANCHISE

BUYERS

REALLY WANT?

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Autumn

Franchise New Zealand Autumn 2025 Year 34 Issue 01

s franchise systems throughout the country seek to optimise

operations, enhance customer experiences, and drive growth, AI

technologies are increasingly becoming integral to business strategies.

From embryonic, homegrown franchise networks to multi-national

giants with a Kiwi presence, the adoption of AI is altering the franchising

landscape across Aotearoa.

New Zealand’s unique business environment — with its market size,

geographical isolation, and innovative spirit — presents distinctive

opportunities and challenges for AI implementation in franchising.

Here, we look at how franchises are leveraging AI technologies, the

hurdles they face in adoption, and what success stories are emerging

that highlight the potential of these tools to streamline and supercharge

franchise operations.

At the 2025 International Franchise Association (IFA) Convention in

the USA, held in Las Vegas in February, AI in franchising was a major

focus. Numerous sessions were dedicated to discussing how artificial

intelligence can be used to optimise franchise environments, improve

customer engagement, and provide a competitive edge across

marketing, training, and operational efficiency, making it a key topic of

conversation among franchisors and franchisees alike.

A critical tool

A central theme of the IFA Convention, AI is now considered a critical tool

for modern franchising, not just a trend, with many sessions highlighting

its potential to transform the industry. Topics covered included:

• AI-powered chatbots for customer service

• Predictive analytics for sales forecasting

• Automated marketing campaigns

• AI-driven training platforms for franchisees

• Data analysis for operational optimisation

At the IFA Convention, presenters from major franchise brands and AI

technology companies focused on case studies and best practice examples

of how they are integrating AI into their operations, with a key takeaway

being that AI can be leveraged to enhance customer interactions and

provide a more personalised customer experience. The consensus was

that franchisors who effectively utilise AI are set to gain a significant

competitive advantage over those who don’t.

Greg Paget, former franchisor, board member of the Franchise Association

of New Zealand (FANZ) and now a franchising and small business mentor,

was among the Kiwi contingent at this year’s IFA Convention. “I attended

a number of very informative sessions at IFA on AI,” he says. “All of them,

without exception, were very good, and I can see that this is something

that businesses need to embrace or be left behind.

“The interesting thing compared to previous presentations on this

topic, was that the sessions I attended were about far greater practical

applications. In the past I’ve heard a lot of experts telling us about how

great AI is going to be, but I’ve always found myself leaving a presentation

none-the-wiser as far as application is concerned. This year it feels

really different.

“There are now a raft of AI tools out there, which I’m starting to play around

with. For anybody to become engaged, they simply need to make the leap.”

AI in New Zealand franchising

The franchising sector represents a significant component of New

Zealand’s economy, with sales turnover for the entire franchising sector

estimated at $73.4 billion according to the 2024 Franchising New

Zealand survey conducted by Massey University Business School, and an

estimated 114,300 Kiwis employed in business format franchise systems.

As digital transformation accelerates globally, New Zealand franchises

have begun exploring AI solutions to maintain competitiveness and

improve efficiency.

Artificial Intelligence (AI) has emerged as a transformative force across the

globe, with innumerable existing and potential applications, but how has

New Zealand’s franchising sector embraced this evolving technology?

FUTURE THINKING:

AI IN NEW ZEALAND

FRANCHISING

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

According to the 2024 survey, approximately 72% of franchises are using

or planning to implement AI technologies within their operations. Many

franchises reported they are currently utilising AI tools, particularly

ChatGPT, to enhance the efficiency and effectiveness of their operations.

Respondents also indicated a diverse application of AI across various

functions including:

• Content creation for marketing purposes

• Chatbots for customer service and lead generation

• Research and data analysis (consumer behaviour analysis

performance tracking, etc.)

• CRMs

• Email communications

Key applications

One of the most visible applications of AI in franchising has

been in customer service. Many franchise businesses have

implemented chatbots and virtual assistants to handle routine

customer inquiries, process orders, and provide information about

products and services.

Back in 2022, Night ‘n Day, a New Zealand convenience store franchise

with over 50 locations nationwide, implemented an AI-powered chatbot

called, ‘Nightbot’ to handle customer queries across its digital platforms.

The system was introduced to address frequently asked questions

about store hours, product availability, and promotions while collecting

valuable customer data. According to the company, the implementation

reduced call volumes to individual stores by approximately 30% and

improved customer satisfaction scores.

Similarly, Columbus Coffee, with more than 70 cafés throughout New

Zealand, has integrated an AI-driven loyalty app that personalises

promotions based on customer purchase history and preferences. The

system analyses transaction data to suggest relevant offers, with the

company seeing a 22% increase in repeat customers and a 15% boost in

average transaction value across participating locations.

Operational efficiency and management

Franchise operations involve numerous repetitive tasks and data-

intensive processes that are particularly well-suited for AI automation.

New Zealand franchises are increasingly deploying AI tools to streamline

these functions.

Green Acres, one of New Zealand’s largest home services franchise

networks, implemented an AI scheduling system in 2023 that optimises

service routes and staff assignments. The system considers factors such

as technician skills, customer preferences, and geographic locations to

40.4%

28.1%

31.6%

AI use within

franchise systems

Yes

No, but intend to

within the

next 12 months

Driving Miss Daisy’s Richard Lu and

Franchise Accountants’ Philip Morrison

Franchise New Zealand Autumn 2025 Year 34 Issue 01

create efficient schedules. Since implementation, the company reports

a 25% reduction in travel time between jobs and a 15% increase in the

number of services that can be completed daily.

In the food service sector, Burger Wisconsin deployed AI-powered

inventory management across its 25 locations. The system predicts

ingredient needs based on historical sales data, weather forecasts, and

local events, automatically adjusting orders to minimise waste while

preventing shortages. This, the company says, has resulted in a reported

18% reduction in food waste and significant cost savings across

the network.

Marketing and customer analytics

AI-driven marketing tools have proven particularly valuable for franchises

seeking to maintain consistent brand messaging while tailoring

campaigns to local markets.

Harcourts, New Zealand’s largest real estate franchise, has implemented

an AI marketing platform that analyses local property trends and buyer

behaviors to create targeted advertising campaigns for individual

franchisees. The system automatically generates social media content,

email marketing materials, and digital advertisements tailored to

specific geographic markets.

Challenges in implementation: Scaling,

connectivity and infrastructure

Despite the promising applications, franchises in New Zealand face several

distinct challenges when implementing AI technologies. New Zealand’s

market size presents inherent limitations for franchises considering AI

investments. With a population of just over 5 million, even nationwide

franchise systems operate at a scale significantly smaller than their

counterparts in larger markets.

Effective AI systems typically require substantial datasets for training and

optimisation. New Zealand franchises, especially smaller networks, can

struggle to generate sufficient data volumes to fully leverage AI capabilities.

Employee training represents a significant challenge for franchise systems,

particularly in sectors with high turnover rates. AI-based training tools are

helping New Zealand franchises deliver consistent, accessible training

across multiple locations.

While New Zealand has made significant strides in digital infrastructure,

connectivity issues still affect franchise operations in rural and remote

areas. This creates challenges for cloud-based AI systems that require

consistent, high-speed internet connections.

Paper Plus, New Zealand’s largest book retailer with over 80 franchised

stores, experienced this when implementing an AI-powered inventory

management system, for example. Stores in areas like Auckland and

Wellington saw immediate benefits, while locations in smaller towns

encountered synchronisation issues and system delays that needed

to be resolved.

Workforce considerations

The integration of AI technologies raises potential concerns around

job displacement among franchise employees. This can be particularly

relevant and of concern in areas where franchise businesses serve as

significant employers in smaller communities. There’s a delicate balance

to strike.

Communication is key, as always, to any change roll-out. Franchises will

be wise to communicate that their AI systems are intended to augment

their service and their people, not replace them. In New Zealand’s often

tight-knit communities, maintaining that trust can prove essential to new

technology adoption and business morale.

Successful franchise systems have found that transparency and

employee involvement in AI implementation are crucial. Speedy Signs

New Zealand created ‘digital champions’ within each franchise location

— employees who received advanced training on new AI design tools and

then helped train colleagues, for example.

Success stories: Franchises leading in

AI adoption

Despite the challenges, several New Zealand franchise systems have

successfully implemented AI solutions with remarkable results. The 2024

Westpac Supreme Franchise System of the Year, Driving Miss Daisy, is

one such beacon.

Running two successful franchise territories in Auckland – Remuera and

Ellerslie – has prompted franchisee Richard Lu to add AI to his resource

toolkit. “I have been looking at AI for some time now and have been

testing the systems myself to see how effective it can be in streamlining

our operations.

“With regard to scheduling trips, using AI to assist with the best route

available to drivers at any given time has proven very valuable at saving

time and stress. Also, we have looked at AI to help with taking calls too.

There are some AI systems that can help very effectively with that.

“For example, AI can be very efficient at taking voice messages

and converting them into text. This can be particularly useful when

liaising with people who may have difficulty hearing. Or, vice versa,

converting text into voice messages can be helpful for people with visual

impairments, say.”

It isn’t a Holy Grail, however. Richard says, “This application of AI needs

to be trialled a lot more, though, from my perspective, as it’s still open

to error. Some of our elderly clients or drivers present challenges to this

technology with not having very loud or clear voices, or have differences

in accents, for example.”

Bringing innovation to business is one way Richard and others in the

Driving Miss Daisy franchise network are keeping ahead of the transport

service curve and forging a successful road for their franchises. He says,

“I am very interested in AI integration and I’m enjoying seeing what it can

assist me and my businesses with for better efficiency. I’m excited to see

where this can lead.”

Inventories and delivery logistics

New Zealand-founded franchise Hell Pizza, with over 70 locations

nationwide, implemented an AI system to optimise kitchen operations

and streamline delivery logistics. The system predicts order volumes

based on historical data, weather conditions, local events, and even

TV programming (yes, they’ve found that certain sporting events and TV

shows correlate strongly with pizza orders, for example).

This predictive capability allows individual franchisees to adjust

staffing and ingredient preparation in advance, reducing waste

and improving service times during peak periods. On the delivery

side, the system optimises routes for drivers, considering factors

such as traffic conditions, order clustering, and delivery

timing promises.

The company reports that franchisees using the system have seen

an average 23% reduction in ingredient waste and a 15% increase in

deliveries per driver hour, significantly improving profitability.

Customer experience personalisation

A major use of AI in franchising currently in New Zealand is in the area

of personalised customer experience. Locally-founded gourmet burger

franchise BurgerFuel, has leveraged AI to enhance customer experiences

through its mobile app and loyalty programme.

Its AI system analyses individual customer preferences, purchase

history, and even the timing of visits to create personalised offers and

menu recommendations. The system also optimises the timing of

promotions, sending offers when customers are most likely to respond,

based on their historical ordering patterns.

The company reports that this ‘personalisation engine’ has increased

customer engagement with the app by 45% and boosted average order

value by 12% among its loyalty programme members.

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

The future of AI in franchising?

As AI technologies continue to evolve and become more accessible,

their impact on New Zealand’s franchising sector is expected to grow

substantially. Several emerging trends are likely to shape this future:

Collaborative AI development

Recognising the scaling challenges of the New Zealand market, it would

make sense that franchise systems are likely to increasingly explore

collaborative approaches to AI development.

Integration of local AI expertise

New Zealand’s growing AI ecosystem, including university research

programmes and specialised AI startups, presents many opportunities

for customised solutions that address the specific needs of local

franchise operations.

Companies like Soul Machines, a New Zealand-founded AI company

specialising in humanised digital interfaces, are already working with

several franchise systems to develop virtual assistants tailored to the

local market, including proper pronunciation of te reo Māori words and

understanding of Kiwi colloquialisms.

Regulatory adaptation

As AI becomes more prevalent in business operations, New Zealand’s

regulatory framework is likely to evolve to address associated

challenges. The Privacy Commissioner has released guidelines

specifically addressing AI systems and data collection, which will shape

how franchise systems implement these technologies moving forward.

Franchise agreements are also evolving to address AI integration,

with some newer contracts explicitly covering data sharing, algorithm

training, and technology implementation requirements between

franchisors and franchisees.

In conclusion

Artificial intelligence represents both a significant opportunity and

a complex challenge for New Zealand’s franchise sector. While scale

limitations and resource constraints present hurdles for implementation, the

potential benefits in terms of operational efficiency, customer experience,

and competitive advantage are substantial.

The most successful implementations thus far, in AI as with business

development generally, have been those that acknowledge New Zealand’s

unique business environment rather than simply importing solutions

designed for larger markets. By focusing on specific high-value applications,

collaborating across franchise systems, and leveraging local expertise, Kiwi

franchise businesses are finding their own ways to harness AI’s potential

while navigating its challenges.

As AI technologies become more accessible and adaptable, integration into

franchise operations across New Zealand is highly likely to accelerate, at

pace. For franchisors and franchisees alike, developing a thoughtful strategy

for AI adoption — one that considers the unique characteristics of both

the local market and individual franchise locations — will be increasingly

essential to maintaining competitiveness in this evolving landscape.

The experiences of pioneering franchise systems demonstrate that when

implemented with consideration for local context, AI can deliver substantial

benefits in a market the size of New Zealand. As these technologies evolve,

they promise to further transform the ways in which franchise businesses

operate, engage with customers, grow and succeed across Aotearoa.

Heather Barker Vermeer is editor of Franchise New Zealand media.

She has worked as a writer and editor for over 20 years and is founder of Human

Interest NZ, a writing and editing business with a focus on storytelling for a range of

organisations across sectors. While she employed the services of search engine-

related AI in her research for this feature, and appreciates its myriad applications,

she is most passionate about the importance of human storytelling.

About the author

ANCHORANCHORFRANCHISE@FONTERRA.COMLORE

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espite post-Covid economic gloom of 2023, this was an opportunity

Rakesh and Nuti Patel could not turn down. The Coffee Club,

Tauranga Crossing, had come on the market at an investment cost that

met their bank’s approval.

“Covid had really got us thinking about going into business for

ourselves. Especially after 13 years working for a Tauranga manufacturing

company, when the owner told me he wanted to sell and couldn’t give

any assurances of ongoing employment,” explains Rakesh.

“Appreciating that this was not the right time to start a business entirely

on our own, our focus was franchise opportunities. Even though we

had no preference about what sort of franchise, The Coffee Club began

emerging as a contender. It helped that I enjoy cooking, and Nuti had

food outlet experience from working in a Toronto Taco Bell outlet.”

Ethical, environmental and social values

“The more we looked into The Coffee Club, the more impressed we

became with New Zealand’s largest, most recognised and most awarded

café brand. Looking beyond The Coffee Club commitment to good food,

great service, excellent coffee, we were struck by the company’s ethical,

environmental and social values,” Rakesh says.

“On top of encouraging franchisees to support their local communities

through school sports and other sponsorships, The Coffee Club donates

$100,000 to organisations such as KidsCan, SPCA, Make-a-Wish and

Pet Refuge, annually. Another plus was that New Zealand franchisor

co-directors Brad Jacobs and Andy Lucas had signed the Pride Pledge on

behalf of franchisees to celebrate the diverse workforce and importance

of representation.

“Sustainability is also a big commitment. For example, The Coffee Club

Signature Blend beans are sourced directly from farmers and roasted in

a machine that uses 25% less gas than traditional roasters. All cups, lids

and straws are compostable and biodegradable.”

Disappointment turns to delight

Having narrowed their choice to The Coffee Club, Rakesh and Nuti

approached Brad Jacobs only to find any opportunities were beyond their

financial reach. Then, disappointment turned to delight some months

later, when one of the smallest of The Coffee Club’s 67 cafés came on the

market. Catering to around 100 customers, the café was affordable, and

its location in the Tauranga suburb of Tauriko was perfect for the Patels.

“Tauriko is where we have worked for years, watching it grow from a

few thousand residents to a population of over 18,000. And it’s not

just residential, there’s a lot of commercial and industrial development

too. Tauriko is also home to Tauranga Crossing which, with 70+ shops

including Pak’nSave and 25 eateries, is considered the Bay of Plenty’s

destination shopping centre.

“Just after Easter 2023 and having completed my training that included

the excellent Six Building Blocks programme, we were The Coffee Club,

Tauranga Crossing franchisees. In the post-Covid environment, Nuti

continued her employment as we expected business to be sluggish.”

“Oh, my God, what have I done?”

“Sluggish was an understatement. There were so many days, when, with

no customers for one to two hours and three staff standing around, I’d

find myself asking, ‘Oh, my God, what have I done?’

“Luckily, Nuti was bringing in an income, but the real inspiration to keep

going came from Brad, Andy and members of The Coffee Club franchisor

team. Almost every day I’d get their calls offering encouragement and

ideas on how to reduce costs. On our own, we wouldn’t have survived.

“Franchisor support and our perseverance paid off. Early in 2024 we

turned the corner, with most weeks showing income and profits up. This

also meant Nuti was able to leave her job to manage all aspects of front

of house, while I was in charge of the kitchen.

“As a married couple working together, we decided it was important to

have this strong demarcation of responsibilities. Believe me, it works.”

Award-winning couple

At The Coffee Club Franchisee Awards 2025 in Auckland, this business

strategy clearly contributed to the Patels receiving the 2024 Operations

Excellence Award and Rakesh winning the 2024 Chef of the Year.

Another of the couple’s operational rules is providing family time for their

two daughters, Tasha (19), Keisha (14) and son, Tej (13). “We’ve made it a

rule to never bring work home and that also means not answering phone

calls after hours.”

Rakesh and Nuti estimate their customer base sits at around 40% regulars,

with the balance coming from drop-ins; many being tradies, sales reps

and Tauranga Crossing shoppers. Open seven days a week from 7am to

4pm, the café provides local employment for four full time staff and three

part-timers.

“To show just how much we support The Coffee Club, our ambition is to

purchase the two Tauranga cafés we once could not afford.”

Wherever you are in New Zealand

For Brad and Andy, the Patels show just how successful people from all

walks of life can be as The Coffee Club franchisees.

“Regardless of previous careers, we want to hear from individuals, couples,

partners or family groups who enjoy people

and support our business ethics and

values,” explains Brad.

“The kickstart we give through the Six

Building Blocks, in just five weeks, equips

franchisees to open their own The Coffee

Club outlet.

“The first step is to contact me, wherever

you are in New Zealand.”

The Coffee Club

www.thecoffeeclub.co.nz

Contact

Brad Jacobs

027 526 3333

brad@thecoffeeclub.co.nz

Advertiser Info

Nuti and Rakesh Patel

POST-COVID

SUCCESS

From hospitality novices to

The Coffee Club award winners.

Opportunity: Food & Beverage

Franchise New Zealand Autumn 2025 Year 34 Issue 01

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Contact

Some franchises offer a form of work or income guarantee, especially in

the service sectors. If you are leaving a regular pay cheque behind for the

first time, the idea of a guarantee can be an attractive one, because it

reduces some of the risks of setting up your own business.

However, having a guarantee is still not the same as being employed.

The amount guaranteed is likely to be enough to see you through difficult

times or the initial start-up period. But, to get a real return on the time

and investment you put in, you will need to make the business work.

If you do not believe that you will be able to exceed the guaranteed

amount and achieve your real goals, don’t buy the franchise. On the

other hand, if you just want some reassurance while you get your

business-building skills up to speed, a guarantee can offer a safety net.

If the guarantee really matters to you, it’s important to know what it is

and what it covers. In general, guarantees are divided into two types:

work guarantees, where the franchisee is guaranteed a certain value of

work that they must carry out in order to generate income, and income

guarantees, where the franchisee is guaranteed a minimum income.

Income guarantees are less common, so make sure you find out which is

being offered.

Whichever type of guarantee it is, there are certain to be conditions to

be met. For this reason, franchise buyers need to confirm exactly how

any guarantee operates before making their decision. Here are some

questions that may help:

• What is the purpose behind the guarantee being offered?

• Is it a guarantee of work to an agreed value or of income to a set level?

• What is the guaranteed amount?

• Under what circumstances will it be paid?

• How long will it be paid for?

• What special conditions apply (eg. must I accept any work given

anywhere? Must I contact the franchise office every day for work?)

• When is the guaranteed amount payable?

• What happens if the franchisor cannot afford to pay the guarantee for

the specified period?

• What evidence is there that the guarantee has been paid out?

• If you take the guarantee out of the package, does the franchise still

appear attractive/viable?

This last question, above, is perhaps the most important of all.

Franchising is generally a very low-risk way to go into business. But, if

you want to lower the risk even further, don’t rely solely on guarantees.

Choose wisely, do your research and, above all, take advice from a

franchise-experienced lawyer and accountant.

True success depends not only on the training, support, and systems

provided by the franchisor but on the commitment and hard work you put in

– and no-one can guarantee those. In the end, your success is up to you.

What importance should

you place on a work or

income guarantee?

GUARANTEED

INCOME?

Buying A Franchise: Finance

Image: www.stock.adobe.com/Dilok

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

f the success of a franchise

was only measured in how long

franchisees stayed with a company,

then V.I.P. Home Services would

be near the top of the list. It was

over a decade ago that Shabina

Din started her career with the

franchise, and she has surprised

herself with her achievements

ever since. “In 11 years, we are

nearly mortgage free and own a

rental property,” she says. “I never

imagined we’d get to this point. It

just demonstrates the strength of

the V.I.P. system, and the fact that I

made the right choice.”

Shabina had been working as a

barista at a local café but found

the hours kept her away from her

husband Faiyazu and her two children – both under the age of four at the

time. “My mother had been involved in a different cleaning business,”

she explains. “Although helping her gave me good experience, it was

not the kind of business that really allowed you to grow. We started

investigating franchises that had real business potential, and quickly

decided V.I.P. was the one.”

Shabina found she was able to purchase a cleaning business local to

her in Papakura. “The current franchisees were transferring to Whangārei

to take up the master franchise there and trained me in all aspects of

the V.I.P. system, which was very valuable,” she says. “The company

has a four-week training period for all franchisees, which taught me to

work efficiently, to the highest standards. And it educated me on how

to run a proper business, which neither I nor my husband had any real

experience of.

“One of the great bonuses was that I was introduced to all my new

customers. And I still have some of my original clients today. Inevitably,

people move on, yet with the V.I.P. brand, this invariably means they

want you to continue as their cleaner. If that isn’t possible, you can rest

assured they’ll always seek someone else from the same company.”

Easy to grow the business

Initially, Shabina worked in the business and Faiyazu continued in his

job. As half of the round was after hours work, this proved a great way

to generate some extra cash. “V.I.P. can always keep you busy, as they

provide all the leads from your area,” Shabina explains. “It was then very

easy to grow the business with the continued support of the company

and, before long, we were employing people, too.

“For a while, we were working seven days a week, as we’d just bought

a house. Today, we’ve cut back a bit. The children are now 10 and 13,

and the business is flexible enough for us to collect them every day

from school and make a very good income. Faiyazu works with a courier

company, but I drag him in like a good husband to do the heavy lifting

for me!”

I would not have survived on my own

Reflecting on her longevity with V.I.P. Shabina is emphatic that she would

do it all again. “I’m convinced that if I’d gone into business on my own, I

would not have survived,” she states.

“There is enormous value in a brand that customers know they can trust.

And, in the home services market, V.I.P. is the best. From a franchisee’s

perspective, it has the big advantage of a fixed monthly fee – you don’t

pay a percentage, as the fee is very modest and remains the same

whatever the volume of work you take on, or how much you earn!

“Furthermore, the franchisor is very supportive towards its people. They

hold monthly local meetings, for example, which are a great way of

swapping ideas and getting to know fellow franchisees, who are also

very supportive. During the Christchurch earthquake and Covid era they

halted fees and have supported franchisees going through sickness etc

– they are so approachable with any issues.”

Family feeling

Says Estelle Logan who, with her husband John, is V.I.P. Home Service’s

national franchisor for New Zealand, “It’s a great joy to us to have

franchisees in the business who have made such a success and to have

been able to enjoy their children growing up, too.

“V.I.P. has a great reputation for good reasons. We have over 40 years of

experience in selecting the kind of people who maintain the standards

that have built the franchise so successfully. Shabina and her family

have made a great financial success of her business through dedication,

hard work and sticking to the system.

“Like some of our franchisees, they started with $1,700 per week

established customer base and have more than doubled their business.

Being able to consolidate your round and sell on work often results in

a tidy capital gain for franchisees. It is just another of V.I.P.’s benefits,

along with our work guarantees.”

Indoors or outdoors

V.I.P. Home Services offers two different kinds of franchise: indoor (all

types of cleaning) and outdoor (lawn mowing, gardening and other

work). “V.I.P. offers a completely flexible system that can be tailored to

your needs,” says Estelle. “Shabina’s choice for V.I.P. as a business

has been a solid investment that

has brought her family a great

lifestyle and an excellent income.

Whether you’re looking for a full

or part-time business, we are

currently seeking new franchises

throughout the country, as we

have established and new growth

opportunities available.”

NOTHING TO

Opportunity: Home Services

After 11 years, V.I.P. franchisee has

nothing but praise for her investment.

LOSE

Cleaning up in

franchising! Shabina Din

V.I.P. Home Services

www.viphomeservices.co.nz

Contact Nationwide Enquiries

0800 84 74 96

estelle@viphomeservices.nz

Advertiser Info

10 0 % N Z FO U N D E D & O W N E D

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

Make our brand

your Business

With a dedicated focus on residential

property management, our franchise owners

have a proven track record of success.

There aren’t any stock

holding costs and

income is regular and

assured. Quinovic’s

strong support

network means you

never feel that you

are on your own.

Sharon Layton

Quinovic Merivale and Rolleston, Christchurch

Take the first step to business ownership

today, email franchise@quinovic.co.nz

quinovic.co.nz

The compliance team keeps franchisees well-informed and up to date about

new legislation and changes to rules and regulations in the industry.

Ready to learn more?

Franchisees should have a diverse background and skill set that aligns

with the demands of managing properties, handling client relationships,

and running a successful business, says Stephen. “While prior experience

in property management is advantageous, strong business acumen,

leadership, an interest in residential property, and customer service skills

are equally critical.

“If you share our core values of care, professionalism, integrity,

accountability, enthusiasm and curiosity, Quinovic might just be the right fit

for you,” he says. “In return, we’ll equip you with the knowledge, tools and

support you need to succeed.”

Greenfields franchises are available for $47,500. In addition, you will need

to fit out an office, have a car, ‘tools’ for the job (computer, phone etc)

and be able to finance an initial rent roll acquisition of at least $200,000.

Larger, established franchises are also

available for seasoned investors.

Tim and Stephen encourage you to get in

touch. “If you’re looking for a business

investment opportunity that sets you up for

success from day one, along with long-term

wealth creation, Quinovic could be the

perfect opportunity for you,” they say.

hen Tim and Stephen Dacombe-Bird bought Quinovic Property

Management Group in April 2020, New Zealand was in a nationwide

lockdown, and the world was grappling with a global pandemic. While some

might consider this an unfavourable time to take on a new challenge, the

brothers were undeterred.

As Tim explains, “Stephen and I spent our first 100 days as Quinovic

franchisors connecting one-on-one with each of our franchisees. Although

we had to do this remotely out of necessity, we believe the unique

circumstances helped us build a stronger rapport with our franchisees.”

While the pandemic had its challenges, the resilient nature of professional

rental property management meant that Quinovic’s business was not

directly affected in the same way that so many other businesses sadly were.

In addition, Stephen believes the ongoing success of the business can be

attributed, in part, to Quinovic’s experienced franchisees, many of whom

have been part of the Quinovic family for years.

“I’m still a Quinovic franchisee and have been for around 18 years,” says

Stephen. “It might sound like a long time, but it’s not unusual.

“Quinovic franchises often remain in the same hands for long periods

because the business is robust and resilient. Property investment continues

to be a solid investment option and professional residential property

management services are becoming more sought after.”

People at the heart

Franchisees can employ property managers or, in smaller offices, take

that role on themselves. Quinovic property managers find safe and

well-maintained homes for their tenants. They handle everything from

maintenance requests and communication through to ensuring secure

tenancy agreements. The goal is always to provide a seamless

rental experience.

“We’re known for building long-term, positive relationships with

both our property owners and tenants,” says Tim. “Our focus on clear

communication, responsiveness and property upkeep helps reduce tenant

turnover and vacancies; this creates more stability for everyone.”

The role of technology

Technology also plays an important role in property management and

Tim views this aspect of the business as key to Quinovic’s success in

the industry. Quinovic’s proprietary management software QPMS is

continuously evolving with regular enhancements to align with best practice

industry standards and legislation, such as the new requirement for online

bond lodgement.

Along with a robust knowledge centre on their website, franchisees have

access to Quinovic’s state-of-the-art property management systems and

best practice business tools. They enjoy training and ongoing support to get

the full benefit from Quinovic’s suite of world-class technology.

“Our systems lead the industry in reporting and payment processing,

with our property owners benefiting from real time secure access to their

property financial and condition information,” explains Tim.

Access to the experts

Rental and tenancy legislation have been in a state of flux for some time,

and it can be challenging to keep up with the seemingly ever-changing legal

requirements of the Residential Tenancies Act of 1986. This can be daunting

for everyone involved.

To assist with ensuring compliance with current legislation, Quinovic

provides an in-house compliance team to support franchisees.

Quinovic Property

Management

www.quinovic.co.nz

Contact

Parrish Wong

franchise@quinovic.co.nz

Advertiser Info

Quinovic Property Management has

room for new franchise opportunities

across New Zealand.

Opportunity: Business & Commercial

Stephen and Tim Dacombe-Bird

THE FRANCHISE

FOR YOU?

PROPERTY MANAGEMENT –

Franchise New Zealand Autumn 2025 Year 34 Issue 01

FRANCHISE NEWS UPDATES

news

Our pick of the top news stories from franchise.co.nz and our newsletter

Specialist franchise law firm Stewart Germann Law Office (SGLO)

is celebrating after being recognised at the International Franchise

Association Annual Convention in Las Vegas.

Winners in the prestigious international 2025 Global Franchise Awards,

honouring excellence in franchising, were named in February, with New

Zealand’s Stewart Germann, Khusbu Sundarji and the team at SGLO

achieving a Highly Commended award.

SGLO was up against four much larger US law firms in the Best Franchise

Law Firm of the Year Awards.

“I am thrilled to announce that we came second and were Highly

Commended,” said Stewart, on his return from Las Vegas. “We were

honoured to receive the award.”

In January, Eden Exchange, owners of Franchise New Zealand media,

announced their acquisition of SC Ventures-backed Dealcierge, and

the launch of edenX.

With reach into Australia, New Zealand and now across APAC, the

launch of edenX provides both Eden Exchange and Franchise New Zealand

media clients with access to new markets,

and new services and opportunities.

If you’d like to learn more about edenX,

and what it could potentially do for your

business, visit the website: edenx.global

Franchise New Zealand is much more than a quarterly print magazine. To keep up-to-date with all the latest franchise-

related news in between print issues, visit our website www.franchise.co.nz and subscribe to our free monthly

newsletter. You can also follow Franchise New Zealand media on LinkedIn, Facebook and Instagram.

Almost a year after sweeping

changes to the Accredited Employer

Work Visa (AEWV) were announced,

new rules are in place.

Following a string of Government

announcements, starting last April,

changes to the rules around the

Accredited Employer Work Visa

(AEWV) scheme finally come into

effect in March 2025.

The changes were widely welcomed

by the franchise sector, signalling

a reduction in red tape for migrants

and employers. It is hoped the

measures will simplify work being

done by visa staff and place

franchises on a level playing field

with other businesses when it comes

to work visas. These changes will

enable franchisees to apply to bring

in workers from overseas through the

standard, high-volume, or triangular

employment accreditation.

This suite of changes includes:

• Introducing an English language

requirement for migrants

applying for low skilled level 4

and 5 roles.

• A minimum skills and work

experience threshold for most

AEWV roles.

• For roles that fall into the level 4

and 5 categories, employers will

need to engage with Work and

Income before approval to bring

in migrants will

be granted.

• Reducing the maximum

continuous stay for most level

4 and 5 roles from five years to

three years.

• The franchisee accreditation

category will be disestablished

and these businesses will

be able to apply to bring in

workers from overseas through

the standard, high-volume,

or triangular employment

accreditation.

The Franchise Association of New

Zealand enthusiastically embraced

the positive changes, saying that

over 30,000 franchisees look set

to benefit from the levelled playing

field of the AEWV accreditation

programme for hiring migrant

workers. Announcing the change

to members, FANZ said: “This

development brings significant

advantages, including substantial

cost savings in application fees

and enhanced efficiency with

a streamlined two-year

renewal cycle.”

Franchisors anticipate the gradual economic recovery will improve

business results for both their franchisees’ and their own businesses,

according to the latest Franchising Confidence Index figures.

Franchisors were significantly more positive this year about the outlook

for their own businesses and those of their franchisees, with confidence

levels even exceeding those profiled in recent NZIER and ANZ business

opinion and outlook surveys. Franchisors expressed much greater

confidence in franchisees’ sales and profitability levels improving this

year, followed by a consequent improvement in potential franchisor

growth prospects.

The top challenges perceived shifted focus in 2025, with access to

finance being of less concern than the ability to find good franchisees and

ongoing concerns with the impact of the economy.

Key findings from the survey results were presented at a webinar in

February, hosted by report publisher Dr Callum Floyd of Franchize

Consultants. They include:

• Improved business confidence

• Challenges to development

• Opportunities for development

• Sector sentiment

• Emerging trends

Read more at franchise.co.nz/articles/3928

NEW VISA

RULES

NOW APPLY

FRANCHISING OUTLOOK

2025: HOW ARE WE FEELING?

SGLO ACHIEVES

INTERNATIONAL

RECOGNITION

FNZ PARENT COMPANY

GOES GLOBAL

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

The franchise sector duo of Matt Woodley and Nathan Bonney are back for

another epic adventure on the 2025 Pork Pie Charity Run, revving up to hit

the open roads of New Zealand once again! After completing their first run

in 2023 as a one-off, bucket-list experience, the duo quickly realized they

couldn’t resist the thrill – or the opportunity to make a difference for Kiwi

kids in need.

In 2023, the pair not only crossed the finish line but thanks to considerable

support from the franchise sector, they hoisted the trophy for raising the

most funds. They were determined to hit the $100,000 mark for KidsCan,

but missed their ambitious goal. This time, they’re rallying together with

greater resolve – hoping to raise an even larger sum to provide food,

clothing, and basic needs for children across New Zealand.

Matt, Nathan, and their faithful 1999 Mini Cooper, “Minty,” will be taking to

the scenic backroads once again, but they need your help.

“Minty might be small, but with New Zealand behind us, we’re ready to

make a big difference,” says Matt. “We’ve seen first-hand the impact these

funds have on KidsCan, and it fuels our drive – literally and figuratively – to

give it our all once again.”

The 2025 Pork Pie Charity Run is scheduled to take place across New

Zealand between 4th – 10th April, and Matt and Nathan are inviting New

Zealanders to join their journey, either through donations, sponsorships,

or even cheering them on from the side lines as they pass through towns

and cities.

For those interested in supporting Matt and Nathan on their mission to

raise funds for KidsCan, visit porkpiecharityrun.org.nz/t/the-bonodleys or

email nathan@iridium.net

FRANCHISING UNITES AGAIN

FOR CHARITY PORK PIE RUN

Long-serving Franchise Association of

New Zealand CEO Robyn Pickerill has

retired from the role, stepping down

to spend more time with family.

Making the announcement, FANZ

Chair Brad Jacobs said, “On behalf of

the Board, all members, and partners

of FANZ, I would like to take this

opportunity to thank Robyn for her

huge contribution to FANZ over the

past nine years. Robyn and her team

have really transformed FANZ over

her time as CEO, making it the very

professional Association it is today –

one I am very proud to be part of.”

Katrina King has joined FANZ as the new CEO. Katrina comes to

FANZ with a very strong background in governance, leadership and

communications, most recently leading the Grief Centre. She also

has significant experience as both a member and chair on a range of

boards and has good knowledge and understanding of franchising.

END OF AN ERA AS

FANZ CEO STEPS DOWN

Call the Coach

Stewart Germann

+64 21 276 9898

www.franchisecoach.co.nz

The Franchise Coach,

Stewart Germann will

walk you through the

process of becoming

a franchisor from initial

enquiry through to

opening the doors,

including for overseas

brands setting up shop

in New Zealand.

stewart@thefranchisecoach.co.nz

Khushbu

Sundarji

Partner

khushbu@

germann.co.nz

Stewart

Germann

Partner and

Notary Pubic

stewart@

germann.co.nz

Are you ready

to turn your

business into

a franchise?

Recognised in

Celebrating

30 Years

www.germann.co.nz

09 308 9925

We are widely acknowledged as

New Zealand’s leading franchise law firm

and can provide you with expert legal advice

in all areas of commercial and business law

including franchising and licensing.

We are passionate

about business and

franchise law

7 reasons to talk to us

ou sign up

Comprehensive pre-purchase evaluation reports

Business structures to minimise risk, maximise protection

Proven solutions and systems to save time, money and tax

Specialist advice complete with listening and understanding

Specialist franchise mentoring and ongoing support

The knowledge and experience of New Zealand’s premier

dedicated franchise specialist

A New Zealand franchise industry award-winning service

Reduce the risk when

buying a franchise.

Use our new online pre-purchase evaluation platform to

ﬁnd out if buying a franchise is the right ﬁt for you!

Enter your details into our purpose-built platform and get a full, comprehensive report, including ﬁnancial and

lifestyle evaluations, that will tell you if buying a franchise is the right choice for you. Developed by Franchise

Accountants, with specialised franchise experience, this platform is the only one of its kind that compares your

data with like-for-like franchises and businesses, along with your personal expectations and ﬁnancial position.

0800 555 8020

info@franchiseaccountants.co.nz

www.franchiseaccountants.co.nz

Westpac New Zealand

Franchise Awards

Service Provider of the Year

2011–12 Winner

2015–16 Winner

2017–18 Winner

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2024–25 Winner

Know before you invest!

Westpac New Zealand

Franchise Awards 2024

Winner

Service Provider of the Year

Visit our website

franchise.co.nz – PUTTING PEOPLE IN BUSINESS

hen Richard Lu considered transitioning from his role with St John

Medical Alarms, to franchise owner with the Westpac Supreme

Franchise System of the Year 2024 Driving Miss Daisy, he sought the

advice of Philip Morrison at Franchise Accountants. That led him down a

path to success he could hardly have envisaged.

“Being the first time I’d dealt with franchises, I wanted an accountant

and advisor who knew everything there was to know about franchising in

New Zealand. I saw that Philip and his team were six times winners of the

Service Provider of the Year award and had helped several other Driving

Miss Daisy franchises, too, so I knew he was the man for the job!

“I felt Driving Miss Daisy was a great franchise opportunity, and the

franchise area available was one I am very familiar with,” he explains.

Richard has lived in Auckland for almost 30 years, studying at Auckland

Grammar School and the University of Auckland, where he gained a

degree in biomedical science. This led him to work with St John Medical

Alarms. “There, I had the opportunity to interact with many elderly

clients and understand the services Driving Miss Daisy provide,” he says.

Beyond all you’d expect

As well as being ‘incredibly helpful’ during the due diligence process,

Richard says Philip, his colleague Hayden Cargo and the whole Franchise

Accountants team, went far beyond his expectations of what a franchise-

experienced accounting business could add to his pre-purchase decision

making. He shares, “Beyond all you’d expect from an accountant, Philip

and his team’s franchise expertise meant they could also answer very

specific questions about Driving Miss Daisy’s franchise model. They gave

me the best advice based on years of knowledge!”

Richard subsequently took the leap to buy the Driving Miss Daisy

Remuera and Ellerslie franchises and now has nine vehicles, 11 drivers

and runs more than 1000 trips per month. His franchises support people

of all ages to enjoy a fuller, freer life.

“Driving Miss Daisy is a wonderful service, not only supporting the

elderly and injured but also assisting those who don’t drive. We offer our

clients independence, safety, personal care, and cost-effective transport.

We can even help with children, guiding them to and from school or

extracurricular activities.”

Richard credits the sector-specific advice he received from Philip and

team in giving him the confidence to proceed and flourish in franchising.

He says, “The kinds of questions Philip and his team were able to answer

included queries I had around such things as why are Driving Miss Daisy

franchises for sale rather regularly?

“I was reassured by the responses I received around the numbers of

franchise owners being semi-retired people, or retirees, who want

something to do, but who perhaps then find that the franchise area is

quite small for all the paperwork involved, for example. This was a great

point from Philip, which I really took on board. I discovered you ideally

need to have a decent sized business, if you can, hence the reason I

have taken on the two franchise areas of Remuera and Ellerslie.

“The financial analysis Philip provides goes back over three years – it’s

extremely comprehensive – and Philip and his team have been great at

giving us all sorts of business advice too, such as GST filing, training on

Xero and so much more.

Leave no stone unturned

Richard now employs a full-time admin person to handle said

paperwork. “And I’ll probably need another part-time admin support

person soon, too,” he says. Such is business. He has also been an early

adopter of AI technology to optimise his operations (see cover feature on

page 6 for more).

“I’m very glad to have taken the leap into franchising, with Philip’s

guidance. I love what I do. The team takes pride in providing a service

that is second to none and making sure that we’re family when family

can’t be there for our clients.”

That Richard loves what he does certainly shows in terms of success. And

that, in large part, stemmed from the support received when Richard was

contemplating taking those first steps on his franchising journey.

He encourages others

looking for a business

opportunity to take the very

best of advice too.

“It’s great to have the

backing of an accounting

company that leaves no

stone unturned and one

that is so familiar with all

the intricacies of franchising

here in New Zealand.”

Franchise Accountants

www.franchiseaccountants.co.nz

Contact

Philip Morrison / Hayden Cargo

0800 555 80 20 / 021 22 99 657

pmorrison@franchiseaccountants.co.nz

hcargo@franchiseaccountants.co.nz

Advertiser Info

A DRIVING

FORCE FOR

SUCCESS

Running a Franchise

Franchise Accountants is the

award-winning name behind

several successful franchisees in

the 2024 Supreme Franchise System

of the Year.

Driving business forward:

Richard Lu and Philip Morrison

Franchise New Zealand Autumn 2025 Year 34 Issue 01

eaving the big smoke to take up a business opportunity in a smaller

town or a different region can have many advantages, from financial

freedom to family lifestyle.

According to our recent Prospective Franchisee Survey on page 28, over

a third of franchise buyers would consider moving to another region to

take up the right franchise opportunity. Another 19% are undecided, so

let’s have a look at the pros and cons of making a fresh start.

According to Philip Morrison of Franchise Accountants, “For a number of

years now, we have been seeing more and more clients looking to sell

up property in Auckland and move further afield to start businesses.

They see it as an opportunity to improve their financial position

overnight, reduce debt and improve their quality of life, and if they want

to have their own business then cashing in on their property can make it

very affordable.

“If they are concerned about leaving the Auckland property market

altogether, then keeping their property and renting it out can be a good

option. They can almost certainly rent something in the regional centres

much more cheaply, so they are reducing the burden of debt that the

new business needs to support. In turn, that enables them to pay off any

borrowings and improve profitability more quickly.”

However, Philip warns that, “Whether you choose to sell or rent, there

can be tax implications. If you sell a property that you have only recently

bought, or that was a rental property, it may attract capital gains

tax. If you rent out a property, you need to take care to structure the

ownership and any loans in the most tax efficient way and know what

expenses can be claimed when managing remote properties. Everyone’s

circumstances are different, so it pays to take proper professional advice

to ensure you have the right structures for your own individual needs.”

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MOVING

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Image: www.stock.adobe.com/mdurinik