New foreign franchises coming to NZ
Fast-food outlets, beauty salons and firms focused on medicine looking to expand their operations here
New Zealand is top of the expansion wish-list for international brands looking to enter new territories, a lawyer specialising in franchising says.
A string of international franchises ranging from fast food to beauty treatments and medical services are preparing to launch into New Zealand over the next year or two.
Texas-founded seafood restaurant The Boiling Crab is one of a handful of United States-based food franchises looking to enter the market.
The Boiling Crab, which originated in the small seaside town of Seadrift, specialises in crab, shrimp and lobster meals. It is looking for a local franchisee who can commit to opening at least five restaurants within five years.
The Boiling Crab wants to partner and offer a 10-year licence to the business, with the option to extend that for another 10 years, to a party with experience in the food industry, with franchising familiarity a bonus. The parent company would fly the local owner to the US for six weeks of training.
The initial licence fee it is looking for is US$50,000 ($80,400) per seafood restaurant. The lease and fitting out of stores would be a significant investment of between $3 to 5 million.
According to the latest Franchising New Zealand survey, conducted by Massey University in conjunction with the Franchise Association of NZ last year, franchising in Aotearoa is a $58 billion industry. There are 590 business format franchisors in New Zealand and 70 per cent of those brands originated in New Zealand.
Beauty treatment franchise Phenix Salon Suites is another Us-based business set to expand into New Zealand. The multi-disciplinary business that works to promote a number of beauty services under one roof, such as massages, nails, hair and makeup, eyebrows and eyelash extensions, teeth-whitening, piercing and tattoo services.
Non-surgical medicine franchise QC Kinetix is also hoping to set up shop here. The US firm specialises in “regenerative medicine and offers solutions to health issues without the use of drugs or surgery”, according to its prospectus.
QC Kinetix was founded by a group of Us-based doctors and today operates more than 100 locations internationally.
New Zealand was “franchising savvy” and an easy market to enter for overseas businesses, said Stewart Germann, franchising lawyer and managing director of franchising consultancy firm The Franchise Coach.
He said the country did not have franchising-specific legislation, unlike Australia, the US and most other countries, and was generally more affordable to enter compared to the likes of Australia, which made it an attractive destination.
“There’s a number of franchises looking at New Zealand at the moment and that is a very positive sign for the New Zealand economy.”
He said the consumer market was generally welcoming to new international brands, and he expected many more global brands to follow suit.
His pick is that more food and fashion brands would enter the market in coming years.
French retailer Van Cleef & Arpels recently opened a first New Zealand store on Auckland’s Queen St, joining a growing list of global luxury firms operating stores this side of the Tasman, although most are not franchise businesses. SC Luxury will soon open a store in Auckland.
Hollywood star Mark Wahlberg’s burger chain Wahlburgers is set to open its first family burger bar in Auckland this year. The actor, rapper and entrepreneur founded Wahlburgers in 2011 with his brothers, Donnie Wahlberg, who found fame as a member of 1980s boy band New Kids on the Block, and Paul, the chef behind Wahlburgers’ menu.
The cult US burger chain has more than 1500 stores worldwide.
At least four more New Zealand outlets are also planned by Australian owner-operators the Mustaca family with Queenstown sites being scouted this weekend and Tauranga, Wellington and Christchurch the other likely locations. Up to 350 part and full-time jobs will be created, including around 75 in Auckland.
Australia-based Seagrass Boutique Hospitality Group has also signed an exclusive master franchise agreement with Five Guys to bring the brand to New Zealand and Australia.