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Trans-Tasman franchise sectors analysis
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Posted On :
Nov-28-2010
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Article Word Count :
502
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New franchise research findings reveal interesting similarities between Australian and New Zealand franchise sectors.
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The inaugural Franchising New Zealand 2010 research findings, to be officially launched on Monday, November 29, provide for the first true comparison between the two franchise sectors, in conjunction with the Franchising Australia 2010 findings released last month.
Franchising Australia 2010 lead researcher and Franchising New Zealand 2010 Co-author Professor Lorelle Frazer from Griffith University’s Asia-Pacific Centre for Franchising Excellence said the research revealed some interesting differences and similarities between the New Zealand and Australian franchise sectors.
“In the New Zealand franchise sector the majority of staff are in permanent full-time employment, unlike Australia where in the last two years there’s been a reversal of employment trends towards casual employment,” Professor Frazer said.
“The level of conflict within the franchise sectors is relatively the same with 19 per cent of New Zealand franchisors and 22 per cent of Australian franchisors involved in a substantial dispute with a franchisee in the last 12 months.”
The major cause of conflict in both countries is non-compliance by franchisees.
“Similarly, the biggest challenge franchisors face in both sectors is finding suitable franchisees, and the average length of a franchise agreement term is five years,” Professor Frazer said.
“Almost a quarter of New Zealand franchisors are franchising internationally, with Australia the most popular destination. This is similar with the Australian sector, with New Zealand also being the most popular destination.”
The Franchising New Zealand 2010 research, conducted by the Asia-Pacific Centre for Franchising Excellence and New Zealand’s Massey University, provides the first real data on the New Zealand sector since 2003.
Findings from the Franchising New Zealand 2010 research reveals the sector has grown 21 per cent since statistics were last collected.
The findings also show individual franchise businesses are growing in size, with the average number of franchise units per system increasing from 35 to 52 units.
Franchising New Zealand 2010 Lead Researcher and Massey University School of Economics and Finance Senior Lecturer Dr Susan Flint-Hartle said findings were positive.
“Considering the recent challenging economic conditions, growth of 21 per cent is encouraging evidence of sector resilience,” Dr Flint-Hartle said.
“There has been an increase in the number of franchisors from 350 in 2003 to more than 420 this year, plus an increase in the number of units within each franchise system. Data on franchise unit ownership changes in 2009 also provides evidence of stability in the sector.”
Only 13 per cent of franchise units underwent some ownership change in 2009 mostly owing to sale or transfer. Two per cent ceased operations altogether and 3 per cent were terminated, not renewed or taken over by the franchisor.
Franchising New Zealand 2010 was funded by the New Zealand Franchise Association and several New Zealand franchise advisory organisations. The research team also included Asia-Pacific Centre for Franchising Excellence Deputy Director Dr Scott Weaven.
The full Franchising New Zealand 2010 research report is available free from: franchise.edu.au/franchise-research--New-Zealand /ends
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Article Source :
http://www.articleseen.com/Article_Trans-Tasman franchise sectors analysis_43298.aspx
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Author Resource :
The full Franchising New Zealand 2010 research report is available free here
The full Franchising Australia 2010 research report is available free here.
Asia-Pacific Centre for Franchising Excellence
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Keywords :
franchise research, Australia, New Zealand,
Category :
Business
:
Business
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