The popularity of franchised businesses is growing with nearly 550 brands operating in New Zealand.

The Franchise Association (FANZ) said franchised businesses generated about $47 billion in revenue a year, and accounted for about 11 percent GDP, with 114,000 jobs and nearly 30,000 franchise units nationwide.

"Franchising is a cornerstone of New Zealand's economy, offering a proven pathway to business ownership and fostering economic growth across diverse communities," FANZ chief executive Katrina King said.

"As business owners, franchisees are local people running local small businesses, and many make significant contributions to their communities."

Franchising has been growing since 1970s, beginning with the arrival of international brands, such as KFC in 1971 and McDonald's in 1976.

They were followed by homegrown New Zealand brands including Stirling Sports in 1983, Fastway Couriers/now Aramex in 1984 and Pit Stop in 1987.

King said New Zealand was one of the most franchised countries per capita and over 70 percent of local franchise brands were homegrown.

There were nearly 550 franchised brands in New Zealand covering accommodation, hospitality, education, childcare, retail, including supermarkets, courier and freight, health and fitness, real estate, automotive and a range of trade services including building, electrical, plumbing, financial, professional, commercial and home services.

"As economic conditions stabilise and interest rates ease, franchisors anticipate 2025 will lay the foundation for robust growth in 2026," she said.

Wednesday marks the first ever World Franchise Day.

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