Businesses had it tough during the pandemic. In response, while in opposition, one of the National Party’s tried-and-tossed leaders released a comprehensive plan/manifesto to support small businesses. Now businesses are struggling for different reasons – spiralling inflation pushing demand down and high interest rates pushing business costs up – and National seems to have forgotten most of their earlier pledges to New Zealand businesses.
What Does a New Government Mean for Franchising in New Zealand?
New Zealand’s National Party has traditionally been considered pro-small business, promoting policies that foster entrepreneurship and support local enterprises, but the soon-to-be new government seems more focussed on bringing the cost of living down for middle New Zealand.
So where does that leave the franchising industry?
Understanding their campaign promises is crucial for the franchising community, as it directly affects the regulatory environment, business operations and potential growth opportunities.
Tax Relief and Incentives
The central plank of the party’s election campaign was tax relief measures, but nowhere can I find any reference to lowering company tax. Businesses should benefit, however, from the extra spending power generated by National’s $8.9 billion “Back Pocket Boost”, albeit that this only amounts to a few dollars a week for the average Kiwi (National bunched its figures together across households and fortnights to “try and make the numbers look bigger”, according to outgoing Prime Minister Chris Hipkins).
Streamlining Regulations
The National Party has indicated its commitment to reducing red tape and simplifying regulations to promote business growth and innovation. Like Joe Biden when he came to power in the United States, their first order of business is to toss out any of the previous government’s legislation they don't like. This includes the Fair Pay Act, which sought to standardise wages and employment terms across industries such as hospitality and commercial cleaning, and what the party calls ‘RMA 2.0’, the Natural and Built Environments Act (NBEA), which will impact the country’s many franchised building companies.
Infrastructure Development
Supporting infrastructure development is another key element of the National Party's campaign promises. Improved roads and transportation networks will benefit the franchising sector by facilitating more efficient supply chains and reducing operating costs for franchise businesses. However, it is a little unclear how the government will pay for this initiative, given that they have also promised to scrub the annual increases in fuel taxes that the previous government proposed to pay for their infrastructure development promises.
Changes in the Consumer Price Index in New Zealand 1990 to 2023
Getting inflation under control
Inflation rates have been coming down around the world and the previous government’s inflation-control strategy was praised by the likes of the International Monetary Fund (IMF) so National tended to downplay their five-point plan to get inflation under control during their campaign.
While there has been some debate about the impact of tax cuts on inflation, further reductions and the subsequent lowering of interest rates would be beneficial to all businesses, not just franchises.
Business Confidence
Statistics show that business confidence almost always lifts when a National-led government is elected and this should boost franchisees' morale and drive more numbers in franchise recruitment. But economists warn that a change in government won’t be a silver bullet for bringing down inflation or fixing New Zealand’s fiscal situation, so my recommendation is not to wait but to take steps now to make your franchise stronger and more resilient.
And wouldn't you know it – I’ve written an article on doing just that!
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As a franchise consultant, I’ve had the privilege of working with brands that are reshaping industries and challenging the status quo. From the adoption of groundbreaking technologies to the reinvention of traditional franchise agreements, the past year has been a proving ground for innovation. As we step into 2025, the question isn’t just about keeping up—it’s about leading the charge. Let’s explore what the future holds and how some of the most innovative franchises are already paving the path to success.
New laws and regulations came into force in 2024 which will affect the franchising industry, both directly and indirectly, and may lead, in the words of McDonald's corporate and franchisees, to "destruction of the franchise business model"
$8 billion. That's the jaw-dropping amount that Blackstone private equity just paid for Jersey Mike's, a submarine sandwich franchise with just 3,500 stores.
Jaguar's recent rebranding announcement has stirred up fierce criticism and even ridicule. Critics say Jaguar has thrown its iconic brand heritage into the toilet and come up with a new brand image that distances it from its traditional market but seems to alienate new markets.
Meet Sarah. She’s the owner of a boutique business in Auckland specialising in handcrafted, eco-friendly candles. For years, Sarah’s website thrived, attracting customers searching for ‘sustainable candles in New Zealand.’ Her engaging blog posts on candle-making and sustainability consistently ranked high on Google, driving steady traffic and sales. But recently, everything changed.
If you’re not up with the latest on 102-year-old brand remakes, then you’ll never guess whose rebranding pre-launch teaser this is part of. The whole video clip may help.
Donald Trump hasn’t yet taken his place as the 47th president of the United States, but he is already starting to make his mark again on world politics and economies.
This guy has, in my opinion, revolutionised the franchise industry with his unique approach to strategic franchisee recruitment and responsible franchising practices. Just last year, Aaron Harper, CEO and Owner of the Rolling Suds Franchise, awarded franchises for 59 territories across 16 US states, transforming the business into one of the world's largest power washing franchises. Here's how he's done it. Educational Videos: Harper shares real-time business strategies through educational videos on social media, offering insights into responsible franchising and business growth. Social Media Engagement: He maintains an active presence on platforms like LinkedIn and Twitter, posting daily content that discusses franchising best practices and industry trends. Podcast Appearances: Harper regularly participates in podcasts, sharing his journey and expertise in franchising, thereby reaching a broader audience. Keynote Speaking Engagements: He delivers keynote speeches at industry events, discussing topics such as responsible franchising and business development. Media Features: Harper has been profiled in top-tier media outlets like Entrepreneur, Authority Magazine and Franchise Dictionary Magazine, enhancing Rolling Suds' visibility. YouTube Content: He creates informative videos, such as explaining the franchise sales process to educate potential franchisees. Sometimes he seems to give away his 'trade secrets', which could easily fall into the hands of his competitors or inspire would-be franchisees to start their own independent power washing businesses. But Harper believes that his powerful branding, comprehensive end-to-end operating systems and his strong team approach add more value to prospects than going it alone. Getting the help of seasoned professionals: Because Harper's background is in a different industry than property maintenance and he was unfamiliar with franchising before acquiring Rolling Suds, one of the reasons for his rapid success was to engage the services of professionals who assisted him in combining his own vision, values and skillsets with those needed to build and grow a thriving franchise organisation.
Picture this: A prospective franchisee, excited about the possibility of joining your franchise, opens your Franchise Disclosure Document (FDD) for the first time. But instead of finding an engaging, informative document that fuels their enthusiasm, they’re faced with a wall of dense, complex text—a 100-page monolith that feels more like a legal maze than an opportunity.
Every few years, surveys surface that claim to offer a snapshot of the franchising landscape in different parts of the world. These reports are often filled with glossy graphs and impressive numbers like the one below.
Team New Zealand's stunning victory in the 2024 America’s Cup has become a source of inspiration far beyond the world of yacht racing. The principles that led them to success on the water can serve as powerful lessons for businesses looking to excel in 2025. Here’s what we can learn from their win to help drive success in the competitive business landscape. 1. Innovation as a Game-Changer Team New Zealand is known for pushing the boundaries of yacht design, constantly innovating to gain a competitive edge. Their 2024 victory was fueled by their cutting-edge technology, particularly in aerodynamics and hydrofoil design. In business, innovation is equally critical. Companies that embrace new technologies, from AI to automation, stand to gain the upper hand by improving efficiency and creating value in ways their competitors can't. Lesson for business: Invest in research and development and stay ahead of industry trends. Whether you're a franchisor looking to enhance operational efficiency or a startup exploring new markets, leveraging innovation is crucial to staying competitive. 2. Adaptability in the Face of Challenges In the unpredictable world of sailing, adaptability is key. Team New Zealand faced shifting winds, currents and tough competition, yet they adjusted their strategy on the fly. Similarly, businesses in 2025 will need to stay agile, responding quickly to changes in the economic environment, consumer behavior, and emerging technologies. Lesson for business: Build an organisational culture that thrives on flexibility. Encourage teams to experiment, pivot when necessary, and be open to rethinking strategies to stay resilient in dynamic markets. 3. Teamwork and Leadership While technology and innovation are important, Team New Zealand’s success also came down to their strong leadership and cohesive teamwork. Every crew member had a specific role, but it was their ability to work seamlessly as a unit that truly set them apart. The leadership team created an environment where each member could thrive and contribute to the collective goal. Lesson for business: Foster a collaborative work environment where every employee understands their role in the bigger picture. Strong leadership, clear communication, and a shared vision can align your team and ensure everyone works toward common goals. 4. Precision and Execution Yacht racing at the America’s Cup is all about precision—split-second decisions, perfect maneuvers and flawless execution. Team New Zealand's ability to execute their strategy with laser focus enabled them to edge out their competitors. Similarly, in business, having a strategy is only half the battle—success comes down to how well you can execute that strategy. Lesson for business: Prioritise operational excellence. Whether it's improving supply chain management, enhancing customer service or optimising your franchise system, ensure that execution aligns with strategic objectives for long-term success. 5. Staying Calm Under Pressure The high-stakes environment of the America’s Cup puts immense pressure on teams to perform. Team New Zealand's composure during tense moments allowed them to make smart decisions when it mattered most. In business, the pressure of deadlines, competition, and market shifts can be equally overwhelming, and maintaining focus is essential to making the right choices under stress. Lesson for business: Cultivate a culture of resilience. Train your team to handle pressure calmly and methodically. This will not only improve decision-making but also keep morale high in challenging times. 6. Working with the Best to Sail into 2025 with Confidence Team New Zealand's win was its record-breaking third in the America's Cup. New Zealand is only a small and geographically isolated nation compared to all of the other competitors in the iconic race. To me, their victory was a testament to any nation's—or business's—ability, no matter how small, to draw on the best people in their fields into their team. The Team New Zealand team was made up not only of world-class designers, boat builders and sailors, but some of the best in their fields outside the realm of yacht racing. For example, one of the team's cyclors was Hamish Bond, who was not a champion cyclist as you might expect but an Olympic gold medalist in rowing. Just as Team New Zealand's innovative, adaptable, and team-driven approach led to their triumph in the 2024 America’s Cup, businesses can draw on these same principles to navigate the complexities of 2025. I have a passion—backed by expertise and experience—for helping businesses like yours with the strategic vision, systems, people and flawless execution to win the future. Contact me to get started with a free Initial Consultation .
As we approach 2025, the franchising industry stands at a crucial crossroads. Following years of economic uncertainty, shifting consumer behaviours and adaptation to post-pandemic realities, indicators suggest that 2025 could mark a significant turning point for the franchise sector.
