How Much Does a Franchise Cost in New Zealand?

Buying a franchise in New Zealand is an exciting business opportunity. It is an excellent way to start a business while taking advantage of the proven business system and resources available from the franchisor. 

However, like any other business, franchising involves costs and expenses you must pay initially and throughout the process. Laser Clinics New Zealand shares the common fees involved in buying a franchise:

1. Initial Franchise Fee

Franchisees will generally be required to pay a one-off fee to the franchisor. The amount can vary depending on the type and size of your chosen franchise. The initial fee covers your right to use the franchisor’s name, trademark, operating systems, training, and other services to help you start your business. 

2. Set-up Costs

When setting up your first franchise location, you will pay the set-up cost along with the initial franchise fee. This cost varies depending on what is required for the business. Some costs will include costs associated with leasing for your space, store fit-out, initial stock, equipment for your business and more. 

3. Ongoing Franchise Fees

Franchise systems generally require their franchisees to pay ongoing fees for various services and ongoing support that the franchisor provides to their franchisees. Franchise fees or royalties are paid regularly for the duration of your franchise agreement. It can be paid weekly or monthly through various methods such as a fixed fee, percentage of gross income, mark-ups or commissions, depending on the franchise system you are joining.

4. Ongoing Operational Costs

You will have to cover the expenses of operating your franchise location. These expenses may include staff wages, stock, power bills, and rent. Some other expenses you will generally also have to cover are local advertising, equipment maintenance, and other expenses not included in your initial and ongoing franchise fees. 

5. Marketing Fees

Some franchises charge their franchisees marketing fees to cover the cost of promotional efforts for a wider reach, such as a national marketing campaign. This fee may be collected as a percentage of gross income, a fixed fee, or margins.

A franchise opportunity can be a profitable investment. However, it’s important to understand the costs of buying a franchise business for sale before signing an agreement.

At Laser Clinics New Zealand, we offer a unique 50/50 partnership model that greatly reduces start-up costs, plus an attractive remuneration package. We also provide our franchisees with ongoing support, such as training, business tools, and national marketing campaigns.