Your Hub


Forgot password?

Register for ANZ Biz Hub

You'll get easy registration for workshops offered in your area.

Find out more

Find out more

Franchising - seeking professional guidance print Print

  • 4 out of 5 stars
  • from 5 ratings

It is extremely important to seek good professional advice when evaluating any franchise business. Generally, you should seek guidance from your accountant, your lawyer and your banker.

General advice

  • Choose professionals who have specialist franchising experience and ideally are members of the Franchise Association of New Zealand. Ask your bank if it has franchise specialists rather than just 'small business' specialists.
  • Ask for an estimate of fees prior to engaging any adviser. Most lawyers and accountants will not operate on a fixed fee basis as there is always the potential of unforeseen issues arising; however, they should be able to give you a written estimate and an agreement to inform you if costs look likely to exceed that estimate.
  • Do not hold anything back from your advisers or try to cover up your problems. It is their job to take all of the information and advise you of the best way to overcome such problems.
  • Encourage your advisers to work with each other. This will ensure you do not receive conflicting advice.
  • Encourage your advisers to speak directly with the franchisor about any concerns they may have.
  • At the end of the day, it's your money and your business. Your advisers are there to do just that - advise, so do not rely on them to make your decisions for you.


Expert tip

As well as speaking to these professionals, we recommend speaking to someone from Inland Revenue. As a first step, phone them on 0800 377 774 and request a free copy of Smart Business (IR320). It contains information about:

  • What records to keep and suggestions on how to keep them
  • Cash flow forecasting and time management
  • Your tax obligations
  • Using your records to save you time and money.


Your accountant

Your accountant can help you to:

  • Check that figures and forecasts supplied by the franchisor are accurate and reasonable
  • Understand the upfront and ongoing costs in operating the franchise business
  • Work out how much money you will need to borrow to buy the franchise
  • Work out how much money you will need to operate the franchise
  • Determine whether you can afford to buy the franchise
  • Decide whether the price being asked for the franchise is reasonable
  • Determine what return you might make on your investment (including gross profit, net profit, ROI etc)
  • Prepare a cash flow forecast (most banks will require this) and other financial statements
  • Determine the best operating structure for your business (trust, company, sole trader or other)
  • Understand your tax liabilities and the most efficient way to pay tax. They may also liaise with Inland Revenue on your behalf
  • Set up financial monitoring and record-keeping systems for your business.

Note: It is important not to expect your accountant to do everything for you. They may help you to set up financial monitoring systems and processes, but you will need to have a good understanding of these yourself. Often the training received from the franchisor will focus primarily on operational matters rather than general business and finance skills. If you are inexperienced in these areas, it may help to undergo some additional business training.


Your lawyer

Your lawyer can help you to:

  • Understand the franchise agreement
  • Understand any other legal documents, including the lease and disclosure document
  • Request any amendments or additions to the Agreement or any other legal documents
  • Understand your obligations under the law (e.g. Fair Trading Act, Holidays Act)
  • Determine the best operating structure for your business (in conjunction with your accountant)
  • Prepare contracts, such as employment contracts and supplier contracts
  • Liaise with your bank to prepare documentation and arrange settlement of finance.


What your ANZ Business Specialist does:

  • Works out the best way to fund your business. ANZ has a unique method of assessing franchise systems that means, for some franchises, we can lend up to 60% of the value of the business
  • Assesses a franchise opportunity from a finance perspective before you purchase it
  • Provides you with tools to prepare your personal financial statements, cash flow forecast, profit and loss statement, business plan and marketing plan. 
  • Sets up your merchant facilities such as EFTPOS. Because EFTPOS New Zealand Limited is a wholly owned subsidiary of ANZ Bank New Zealand Limited, ANZ can offer a true one-stop shop for your banking and merchant needs
  • Sets up all of your transactional accounts and business credit cards
  • Helps you ensure you have all the essential insurance in place to protect yourself, your assets and your business
  • Helps you with your personal as well as your business banking requirements, including personal cheque and savings accounts, credit cards, lending and insurances.
  • Helps you set up payment systems for paying suppliers and wages. ANZ Phone Direct and ANZ Internet Banking's Pay Anyone facility are unique to ANZ and allow efficient and safe payment of your bills and wages online
  • Helps finance plant, machinery, vehicles and equipment through UDC Finance Limited, a wholly owned subsidiary of ANZ. Between ANZ and UDC, we can provide some extremely competitive plant financing packages
  • If you are importing or exporting, brings in foreign exchange specialists to advise you
  • Provides access to an Investment Specialist to advise you on how to invest the proceeds of your business, how to save for the future, and even how to save in order to buy your business
  • Provides access to an ANZ Business Risk Adviser to assist you to manage the 'people risks' in your business. They can assist you in preparing a 'statement of advice' to help you evaluate your existing arrangements and identify areas where you're exposed.


Further information:

To talk to an ANZ Business Specialist:
Call 0800 269 249
Visit your nearest ANZ branch


Rate this article:

  • 12345 Click on the stars to rate

Share this: