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5 Franchise Lessons Before You Buy (NZ 2026) | Hygiene Direct

Date: 24-09-2026
Blogs Franchise Opportunity

Thinking about buying a franchise? Five lessons from someone who got it wrong

In the Spring 2026 issue of Franchise New Zealand, franchise consultant Doug Downer writes openly about owning eight franchises and watching three of them fail. It's worth reading in full if you're thinking about buying a business. These are the lessons that stood out to us, and how we've built Hygiene Direct around them.

1. Be hands-on

Downer says his biggest mistake was treating ownership like a passive investment and putting managers in to run things. Franchising works because an owner-operator runs the business better than an employee would.

At Hygiene Direct: this is a business for people who want to be involved. You're the face of your business, meeting customers and building relationships, while head office handles the operational load behind you.

2. Don't go in undercapitalised

Downer says running short of money is one of the most common reasons franchisees struggle. It hurts both the business and the owner's wellbeing. People underestimate what it costs to operate and overestimate early income.

At Hygiene Direct: our entry costs are deliberately low, and head office carries the cost of purchasing and importing stock. That means less of your capital is tied up before you've won your first customer.

3. Pick an industry that holds up when times are tight

The magazine notes that lending is tighter, consumers are cautious, and there's less room for error than a few years ago.

At Hygiene Direct: businesses need toilet paper, soap, paper towels, bin liners and cleaning chemicals in any economy. That's why we've kept growing through changing conditions.

4. Look for a franchisor that chooses carefully

One of Downer's sharpest points is aimed at franchisors: treat recruitment as selection, not sales. Approving someone just because they have the money is bad for everyone.

At Hygiene Direct: our process is simple. You get the information pack, we have an informal conversation, and you visit head office and meet the team. Then you take your time. We only go ahead if we both believe it's the right fit, because we'd rather build long-term partnerships than make quick sales.

5. Do more homework than feels comfortable

The magazine's advice is consistent across the issue: ask the franchisor hard questions, talk to existing franchisees, use advisors experienced in franchising, and treat any pressure to rush as a warning sign.

At Hygiene Direct: we're not a member of the Franchise Association of New Zealand (FANZ), so we'll be upfront about how we handle transparency. Every prospective franchisee receives our disclosure document. We also run an open-book policy: franchisees and serious prospects can see how the company works behind the scenes, including purchasing, supply, systems and support. The only thing we keep private is the company's financial statements.

Is this right for you?

You might be a good fit if you're a salesperson who wants to earn what you're worth, if you've recently been made redundant and are ready for your next chapter, or if you're simply tired of building someone else's future. Every customer you win adds value to a business you can one day sell.

Request your free Franchise Information Pack → or call 0800 828 4426.

Related Article:

What does head office actually do for a franchisee?