Minister recognises franchising's contribution to NZ economy

Regional franchises have been performing well and news there looks more and more positive with reports from the four-day Fieldays event this week that farmers have been upbeat and ready to reach into their wallets for everything from tools to tractors to Tesla Cybertrucks.

And on Wednesday, the Minister for Small Business and Manufacturing, the Hon Chris Penk confirmed this positivity in front of a large crowd at the first World Franchise Day event to be held across the globe, when he told those gathered at the Westpac head office in Auckland that the NZ economy has turned a corner, now being officially out of recession.

At the same event, organised by the Franchise Association of New Zealand, Westpac’s National Franchise Manager, Daniel Cloete pointed out that businesses will soon be experiencing benefits from the large number of fixed-rate home loans refixing at lower interest rates this month (June). This is expected to lead to more freedom for discretionary and investment spending in the second half of 2025. Franchisees, especially in the hard-hit areas of retail and hospitality, should see a lift in sales turnover and franchisors may find an increased willingness to invest from potential franchise buyers ready to ride the wave back to prosperity.

Chris Penk also referred to the government’s recently-introduced Investment Boost tax deduction initiative, and information about which business assets this refers to and how the claims can be practically applied to business expenditure is available here. 

The Minister acknowledged the significant economic and employment contributions of the franchise sector in New Zealand, highlighting the $47.2 billion sector’s vital role in the country’s economy and in providing jobs and supporting livelihoods across the regions. Franchising is a substantial part of the New Zealand business landscape - and it was good to see a government minister publicly recognising this fact.