1 00:00:00,080 --> 00:00:02,640 Speaker 1: Yesterday it was numbers around business sales and they were 2 00:00:02,640 --> 00:00:05,040 Speaker 1: setting records. This morning it's the allure boning a franchise. 3 00:00:05,080 --> 00:00:06,960 Speaker 1: So the industry's had a net worth of forty seven 4 00:00:07,080 --> 00:00:10,319 Speaker 1: billion dollars, which is almost eleven percent about GDP. They're 5 00:00:10,360 --> 00:00:14,200 Speaker 1: currently around thirty thousand franchise units nationally. Bread Jones Bred 6 00:00:14,240 --> 00:00:17,040 Speaker 1: Jacobs rather as the chair of the Franchise Association and 7 00:00:17,120 --> 00:00:18,599 Speaker 1: as well us Bread, very good morning to you. 8 00:00:19,960 --> 00:00:22,000 Speaker 2: Thanks for having me, not at all, these. 9 00:00:21,840 --> 00:00:25,320 Speaker 1: Are these golden birthdays? Are these golden days? 10 00:00:26,360 --> 00:00:29,240 Speaker 2: Yes? Yeah, yeah, we've we've had some great growth in 11 00:00:29,640 --> 00:00:33,519 Speaker 2: enfranchising over the last few years. Our every few years 12 00:00:33,520 --> 00:00:36,600 Speaker 2: we do a large survey with Massi University which came 13 00:00:36,600 --> 00:00:39,919 Speaker 2: out last year. And so as you said, we're now 14 00:00:39,960 --> 00:00:44,200 Speaker 2: at eleven percent of New Zealand's GDP. And in fact, 15 00:00:44,240 --> 00:00:47,640 Speaker 2: if you actually put in motor vehicle sales and retail fuel, 16 00:00:48,280 --> 00:00:51,480 Speaker 2: that brings us up over seventy three billion dollars, which 17 00:00:51,560 --> 00:00:54,080 Speaker 2: is more like about seventeen percent of New Zealand's GDP. 18 00:00:54,360 --> 00:00:56,880 Speaker 1: We talked to the ABC people yesterday on business sales. 19 00:00:56,960 --> 00:00:59,360 Speaker 1: Are business sales the same as franchises? In other words, 20 00:00:59,400 --> 00:01:01,840 Speaker 1: they're the same sort of people buying something. 21 00:01:03,680 --> 00:01:06,560 Speaker 2: Yeah, looks I would say there's a lot of overlap. Yes, certainly, 22 00:01:07,200 --> 00:01:10,640 Speaker 2: New New Zealanders, if you like, I certainly attracted to 23 00:01:10,680 --> 00:01:14,520 Speaker 2: franchise businesses, and franchising is a great model for those 24 00:01:14,560 --> 00:01:17,000 Speaker 2: people to get into business with a lot of support 25 00:01:17,080 --> 00:01:17,800 Speaker 2: and backing. 26 00:01:18,160 --> 00:01:21,039 Speaker 1: And do they vary widely? And what sort of cover 27 00:01:21,120 --> 00:01:23,959 Speaker 1: all protection is there from one franchise to another. The 28 00:01:24,040 --> 00:01:27,520 Speaker 1: thing I'd worry about is size and growth my territory, 29 00:01:27,600 --> 00:01:29,320 Speaker 1: other people getting sold, et cetera. 30 00:01:30,760 --> 00:01:34,920 Speaker 2: Yeah, Well, in terms of it, does it vary widely? Yes? Absolutely. 31 00:01:35,000 --> 00:01:37,720 Speaker 2: You know, franchising covers just about every industry you could 32 00:01:38,000 --> 00:01:41,520 Speaker 2: possibly imagine. And you know, the average New Zealander probably 33 00:01:41,560 --> 00:01:44,120 Speaker 2: comes in contact with three, four or five franchise the 34 00:01:44,200 --> 00:01:48,000 Speaker 2: day without even realizing whether it's getting a haircut, grabbing 35 00:01:48,000 --> 00:01:51,400 Speaker 2: a coffee, getting their online shopping delivered to their house, 36 00:01:52,440 --> 00:01:54,400 Speaker 2: stopping at the supermarket on the way home from work. 37 00:01:55,000 --> 00:01:58,000 Speaker 2: You know, franchising is really everywhere around us all day, 38 00:01:58,000 --> 00:01:58,440 Speaker 2: every day. 39 00:01:58,720 --> 00:02:00,680 Speaker 1: So someone clipping that's I could say, So say there's 40 00:02:00,680 --> 00:02:03,440 Speaker 1: two cafes, one's a franchise, ones just a cafe. Is 41 00:02:03,480 --> 00:02:05,640 Speaker 1: someone clipping the ticket there for the franchise caf is 42 00:02:05,640 --> 00:02:06,640 Speaker 1: more expensive because of it. 43 00:02:07,760 --> 00:02:11,359 Speaker 2: No, not at all. My own business is a cafe 44 00:02:11,440 --> 00:02:15,200 Speaker 2: franchise system and my role as a franchise or is 45 00:02:15,240 --> 00:02:18,560 Speaker 2: to help reduce the operating costs of our franchisese By 46 00:02:18,880 --> 00:02:22,000 Speaker 2: bringing together a group of frenchisees at a buying power, 47 00:02:22,360 --> 00:02:27,320 Speaker 2: better negotiating with landlords, suppliers, whatever it may be. So 48 00:02:27,720 --> 00:02:32,000 Speaker 2: you know, it's my responsibility to offset the franchise fee 49 00:02:32,040 --> 00:02:34,880 Speaker 2: that we charge our franchisees. Of course, we also give 50 00:02:34,919 --> 00:02:37,680 Speaker 2: them a lot of other systems with operations and compliance 51 00:02:37,720 --> 00:02:41,360 Speaker 2: to law, etc. Which as an independent operator could be 52 00:02:41,400 --> 00:02:43,920 Speaker 2: quite expensive and very easy to make mistakes on that 53 00:02:44,120 --> 00:02:47,720 Speaker 2: sometimes could end up in worse than just a monetary 54 00:02:47,720 --> 00:02:49,520 Speaker 2: fine or extra costs. 55 00:02:49,720 --> 00:02:52,120 Speaker 1: Love a good news story, Brad, appreciate it. Bread Jacobs, 56 00:02:52,160 --> 00:02:54,320 Speaker 1: who's the chair of the franchise Association. So between the 57 00:02:54,360 --> 00:02:57,119 Speaker 1: ABC sales yesterday and a franchise association now, I thinks 58 00:02:57,240 --> 00:03:01,239 Speaker 1: seem seem to be turning more. From the Mic Asking 59 00:03:01,240 --> 00:03:04,320 Speaker 1: Breakfast listen live to News Talk set B from six 60 00:03:04,360 --> 00:03:07,519 Speaker 1: am weekdays, or follow the podcast on iHeartRadio.