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Katrina King: Franchise Association of New Zealand CEO on what current economic conditions mean for businesses · Best of Business

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  Speaker 1: You're listening to a podcast from News Talks be follow
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  Speaker 2: To independent small businesses. We're only halfware here in New Zealand.
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  Speaker 2: Less than a third of SMEs established in twenty fifteen,
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  Speaker 2: we're running ten years later. So Katrina King is the
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  Speaker 2: Franchise Association of New Zealand Chief Executive and joins me. Now, Hello, Katrina, Hi, Andrew.
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  Speaker 3: Happy, World Franchise Day?
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  Speaker 2: Is it really there?
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  Speaker 3: We have it?
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  Speaker 1: It is?
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  Speaker 3: It is World Franchise Day.
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  Speaker 2: What makes franchises more resilient than independent small businesses?
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  Speaker 3: Well, I think when you set up as an independent business,
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  Speaker 3: you have no direct support is you're setting up your
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  Speaker 3: own systems, your marketing, your database, your product or service.
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  Speaker 3: But with franchising, you're essentially in business for yourself, but
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  Speaker 3: you're not by yourself. You have a support team, you
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  Speaker 3: have systems, you have branding, marketing, buying power, all too
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  Speaker 3: different levels depending on the system, but you know all
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  Speaker 3: of that is going to help contribute to your success.
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  Speaker 2: So as that startup phase having the backing of golobal
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  Speaker 2: conglomerates and that's where semes fail.
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  Speaker 3: Yeah, definitely the backing with franchising. Over seventy percent of
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  Speaker 3: our brands here are actually New Zealand growing. So somebody
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  Speaker 3: had a great idea, built a business and then decided
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  Speaker 3: to scale with franchising. So there's lots of great key
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  Speaker 3: we entrepreneurs out there who have scaled with franchising, and
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  Speaker 3: then the rest are those big brands that come here.
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  Speaker 2: And if you're thinking about franchising, you want some independence,
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  Speaker 2: you want to control your own life. What kind of
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  Speaker 2: franchises are performing the best well?
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  Speaker 3: Franchisings across all industries and all over the country. I mean,
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  Speaker 3: I speak with our members every single day and that's
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  Speaker 3: what I love about franchising is every industry. Whenever you're
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  Speaker 3: going to do something in your life, that will be
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  Speaker 3: a franchise for that. So I think at the moment,
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  Speaker 3: obviously business is tough for everyone, but you're going to
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  Speaker 3: see in certain regions things are stronger. Retalent, hospitality is tough,
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  Speaker 3: but then in certain areas it's not so bad. But
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  Speaker 3: again I think with franchising, because of the breadth of
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  Speaker 3: industry and because it is in every part of New Zealand,
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  Speaker 3: there's going to be resilience for the sector.
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  Speaker 2: But the thing. There's a lot of little franchises. Something
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  Speaker 2: a big franchise. If you actually buy into McDonald's yet,
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  Speaker 2: you know you've got help and you know that you've
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  Speaker 2: got advice. But there's a lot of littler ones, smaller ones.
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  Speaker 2: I'm thinking about the hire of hobbies and stuff like that.
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  Speaker 2: So there's an awful lot more of those. They don't
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  Speaker 2: necessarily have the backing. And what's the trick there?
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  Speaker 3: All they do? I mean, those franchises have great head
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  Speaker 3: office support systems, and so regardless of the industry, most
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  Speaker 3: franchises will have a really strong support office that has
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  Speaker 3: field managers, that has systems, marketing and all that. Even
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  Speaker 3: our really small systems, the new members that we have
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  Speaker 3: really work hard to establish their head office systems and
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  Speaker 3: support for their franchises. But look, no businesses fail safe,
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  Speaker 3: whether it's independent, franchise or other. And you know, I
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  Speaker 3: think you just have to know what you're getting into
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  Speaker 3: whenever you get into business, and.
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  Speaker 2: You obviously are a convert. But what are the benefits
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  Speaker 2: of becoming a franchise owner.
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  Speaker 3: Well, I think again it's that you're in business. It's
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  Speaker 3: your own business and you're not just an employee of somebody,
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  Speaker 3: but you have that support, you have brand and marketing
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  Speaker 3: and someone you can talk to. Attend a lot of
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  Speaker 3: franchise e conferences around the country and it's brilliant just
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  Speaker 3: to see that network of independent business owners together in
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  Speaker 3: a room there for the one purpose of succeeding as
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  Speaker 3: a business. But they own their own business, they're their
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  Speaker 3: own bosses. And yeah, I just love seeing people succeed,
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  Speaker 3: as I know our franchise alls do too.
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  Speaker 2: I can hear your energy. Katrina, Happy, Happy International Franchise
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  Speaker 2: Day to you, and thank you so much for joining
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  Speaker 2: us today.
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  Speaker 3: Thanks so much for your time.
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  Speaker 2: Katrina King, who's from the Franchise Association of New Zealand.
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  Speaker 2: She's the CEO.
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