Resilient through lean times
The franchise business sector has demonstrated remarkable resilience during New Zealand’s extended economic recession, and fortitude in the wake of the devastating February 22 earthquake.
The franchise business sector has demonstrated remarkable resilience during New Zealand’s extended economic recession, and fortitude in the wake of the devastating February 22 earthquake. NZBusiness editor Glenn Baker reviews the current franchise business landscape and gathers some practical advice for franchisee and franchisor. The tough get going It’s a fact that franchised businesses traditionally perform well during recessions. Simon Lord, publisher of Franchise New Zealand magazine and website, believes this is due to a number of key factors, such as the efficiency, buying power, planning, and focus that franchises bring to small business – and the maintaining of advertising and marketing efforts. |
“What’s happened is the natural law of the business jungle. Those franchises with a strong value proposition and that have their systems right, have coped much better during the recession than those that are less organised. The family steps in Estelle Logan is chair of the Franchise Association of New Zealand (FANZ) and, together with her husband John, is the national franchisor for V.I.P. Home Services. Not only does she have a good handle on New Zealand’s franchise sector, she also has first-hand knowledge of the impact of the recent Canterbury quake on franchisees. Of the 18 V.I.P. Home Services franchises in Canterbury, five were severely affected by the February 22 quake. One had 70 percent of his business wiped out, and Logan says they will be doing everything they can to help these franchisees get back on their feet, even if that means having to redeploy people to the North Island. A relief fund set up amongst franchisees outside Canterbury last September raised $10,000 – and Logan has been amazed at the response from the V.I.P. ‘family’ this time too. |