Franchise New Zealand - Year 31 Issue 01 – Autumn 2022

Page 38

Buying a Franchise: Financial Matters

THE NEW NORMAL Daniel Cloete from Westpac on finding and funding business opportunities in a changing world

A

s the Westpac Economic Overview reported recently, 2022 is shaping up to be ‘another challenging year’ (see page 16). While the economists expect a return to firm levels of economic activity over the coming year, they are forecasting significant differences across sectors and regions. From a franchising point of view, some customers and systems are going exceedingly well, while others are really struggling. The staged openingup of the borders and the economy will support recovery in some of these areas, but it’s not clear how fast. Looking ahead, we need to consider the broader economic cycle and the influence of rising interest rates on disposable income. So what does this mean for anyone looking to buy a business? Something that stood out in the latest Franchising Confidence Index was that while expectations for access to finance, availability of suitable staff and operating costs were particularly negative, one thing that was positive was the availability of suitable locations – something that may represent an opportunity. Buyers may be able to negotiate lower prices for businesses that have

Love reading? Love sharing books? Love people?

had a rough couple of years, or find that site they always wanted at the right rent ratio. Landlords may be more negotiable on contribution towards fit-out, reduced rental bonds, and no rent periods during the start-up phase.

Daniel Cloete

So, while it’s important to pay heed to the risks, keeping your finger on the pulse and ensuring you have the right financial advice could help you to capitalise on some golden opportunities.

Availability of funding The good news is that, compared to historic averages, business interest rates remain very low and interest rates should not be a negative factor in getting business funding. However, funding (especially at the lower end where personal assets tend to be involved) has become more cumbersome. This is due to several factors, including the effects of Responsible Lending

I bought a Pit Stop franchise

If you’ve ever dreamed of owning your own bookstore then we’d love to hear from you. Right now the ORIGINAL Poppies franchise bookstore is on the market and could be yours tomorrow.

After 16 years owners Pam & Brett in Havelock North are looking for someone special to take over this thriving business. And YES you can have it all: loyal customers, amazing stock range, gorgeous furnishings, operating systems – plus plenty of scope to add your special touches.

Step into your new bookselling life with over 45 years’ experience in the business at your fingertips. Add the collegiality of other Poppies owners and your journey starts with all the advantages that shared knowledge and experience can provide.

Poppies…

your own bookstore – think about that! Contact Tony Moores (Owner/Director Poppies Group Limited) 021 828 818 tony@poppiesbooks.co.nz

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and I’ve never looked back Franchise opportunities nationwide. Call Les 027 222 7487 for a chat. Visit www.pitstop.co.nz/franchising Franchise New Zealand

Autumn 2022

Year 31 Issue 01


Articles inside

Slow Food Served Fast article cover image

Slow Food Served Fast

5min
pages 42-43
Why Franchisee Satisfaction Matters article cover image

Why Franchisee Satisfaction Matters

3min
page 37
Overnight Success article cover image

Overnight Success

3min
pages 82-84
Build It And They’ll Come article cover image

Build It And They’ll Come

5min
pages 65-67
Fan-Tastic article cover image

Fan-Tastic

5min
page 61
Strategic Communications article cover image

Strategic Communications

4min
pages 59-60
Eyes Wide Open article cover image

Eyes Wide Open

8min
pages 54-56
Worth Their Weight In Gold article cover image

Worth Their Weight In Gold

5min
page 53
A Slice Of The Action article cover image

A Slice Of The Action

5min
pages 57-58
Ready, Get Set, Grow article cover image

Ready, Get Set, Grow

5min
pages 51-52
On Site, On Point article cover image

On Site, On Point

5min
pages 49-50
Safe Hands article cover image

Safe Hands

13min
pages 45-48
Cool Under Pressure article cover image

Cool Under Pressure

4min
pages 41-42
The New Normal article cover image

The New Normal

5min
pages 38-40
Come Out On Top article cover image

Come Out On Top

5min
page 36
Breaking All Records article cover image

Breaking All Records

5min
page 35
Fresh As A Daisy article cover image

Fresh As A Daisy

5min
page 29
More Than Skin Deep article cover image

More Than Skin Deep

5min
pages 33-34
Time To Shine article cover image

Time To Shine

7min
pages 30-32
Game Changer For Local Area Marketing article cover image

Game Changer For Local Area Marketing

5min
pages 23-28
Keeping On Course article cover image

Keeping On Course

4min
page 18
Time To Get Started article cover image

Time To Get Started

5min
page 11
Only The Best article cover image

Only The Best

5min
pages 21-22
Attitude Determines Altitude article cover image

Attitude Determines Altitude

5min
pages 19-20
Different Approach article cover image

Different Approach

4min
page 12
Prepared For Growth article cover image

Prepared For Growth

5min
page 15
Family Values article cover image

Family Values

5min
pages 13-14
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