US franchise giants looking to set up in NZ

By SIMON HENDERY retail writer

Tiffany Marble, Express Personnel, Cendant, AlphaGraphics and Taco Time.

The names may be unfamiliar but these United States multinationals have two things in common - billion-dollar-plus turnovers and plans to set up shop in New Zealand.

They are among 13 franchised companies visiting Auckland as part of a two-day US Consulate-sponsored "matchmaker" mission to find local master franchisees.

Lisa Struneski, a commercial specialist with the Consulate in Auckland, said matching companies and franchisees was part of the US Government's aim to promote investment into countries where it has a presence.

Auckland franchise lawyer Stewart Germann said the size of the delegation - the first ever from the US - was encouraging.

"They see New Zealand as very franchise-friendly. Because of the treaties we have with the US it's all very easy and there are no tax consequences - you can repatriate money and get credits for any withholding tax deducted."

Mr Germann is the immediate past chairman of the New Zealand Franchise Association, and this month became the first non-American elected to the board of the Council for Franchise Suppliers, part of the 30,000-member US-based International Franchise Association.

He said he hoped to use the appointment to promote New Zealand's franchising potential.

Among those on the mission was Fred Muse, international franchising director for Express Personnel Services.

He said his company wanted to open at least 30 of its staff recruitment offices across New Zealand.

The firm already has 425 franchises in seven other countries.

PW Thompson, president of Tiffany Marble, which has franchised moulding factories in 28 countries, said there was a gap in the local market for the type of products Tiffany sold.

Cendant's international hotels division corporate director, Rajiv Bhatia, said the company could have a local presence before the end of the year if a soon-to-be-appointed master franchisee decided to convert existing hotels to one of Cendant's brands.

Among those talking to the visiting United States companies was Jim Collier, chief executive of Restaurant Brands, which runs the KFC, Pizza Hut and Starbucks franchises in New Zealand.

Restaurant Brands was "just seeing what's out there in the world," Mr Collier said.

"It's good to see international businesses wanting to develop in New Zealand because clearly those companies consider New Zealand as a territory worth pursuing.

"Whether it's with us or other people, inevitably they will invest in the country which is very good."