BIV franchise changes from 6 July 2026: why fast-food and convenience exclusions still matter

8 hours ago

3 min read

From 6 July 2026, BIV applicants can consider franchise businesses that meet the existing requirements. An old statement excluding every franchise may therefore be out of date. The change does not, however, make every chain outlet acceptable. Fast-food, convenience and other excluded-business rules still apply to the actual activity being purchased.

Separate the operating model from the activity

Brand systems, training and purchasing support do not answer whether the target falls within an exclusion. BD 9.15 still excludes fast-food outlets, convenience and discount stores, and businesses operating from a residential address. Other excluded direct activities include gambling, labour hire, nicotine-product manufacture, commercial sexual services and drop-shipping. Recognition of the brand does not remove those tests.

Mixed or unclear activities need a complete factual assessment by the appropriate professionals. Do not choose only the most favourable advertising category. A different registered company name, franchise-service description or partnership label does not itself change what the enterprise actually does.

Assess the target, not the entire franchise network

The nominated enterprise must have traded for at least five years, operate lawfully in New Zealand and meet the five-full-time-equivalent and other requirements. A global brand's long history does not independently prove five years of trading by the target being bought. Head-office staff are not automatically employees of that enterprise. Identify the actual company, business or interest in the transaction.

A new outlet, regional right or future expansion plan should not be assumed to constitute purchase of an acceptable established business. Obtain evidence for the target's real operation, finances and employment. The applicant's or family's existing ownership and specified immigration-use history remain relevant. A network brochure cannot establish all of these matters.

Break down the franchise-related price

BIV excludes business property, GST, fees and transaction costs from the minimum investment. Franchise contracts can contain different rights and payment items. Have the accountant and lawyer explain the real scope and proposed qualifying amount rather than treating every contractual payment as eligible. This article does not determine the immigration or tax treatment of a particular franchise charge.

Reserve funds of at least NZD 500,000 are additional, and actual working capital and household costs need their own budget. A brand's sales projection is not a profit guarantee. Match premises, equipment, employment and family commitments to real resources; projected revenue is not money already held for reserves.

Franchise support does not remove active involvement

The applicant must still participate in operation, decisions and strategy under BD 9.1. Establish rights and responsibilities with the franchisor, managers and any co-owners, then keep evidence of genuine work. Attending training or receiving a title does not alone establish continuing active operation. A wholly passive objective needs assessment before committing to this pathway.

Residence requirements concerning operation, presence, ownership, employment, solvency and compliance remain. Fast-track residence may be considered earlier, but total active operation still needs at least three years. Management software and brand support do not transfer all the applicant's responsibilities to somebody else.

The announcement is not approval of a particular outlet

INZ does not pre-approve or endorse the nominated enterprise. Required valuation, financial and legal due diligence still need to be completed by the appropriate professionals. Identify eligibility, evidence limitations and open matters before the commercial decision. A policy announcement expands what can be considered; it is not an official guarantee that a particular shop qualifies or will make money.