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The Franchise Advice Centre

advice | how to | Managing A Franchise System | Legal Matters

During our many years working within New Zealand's franchise sector, we've learnt a great deal about the market - what works, what doesn't work, and what people involved in all aspects of franchising need to think about to succeed.

We encourage you to read as widely as possible about all aspects of franchising in New Zealand, whether you are interested in buying and then running a successful franchised business, or whether you have a business that you have already franchised or are contemplating growing using the franchising model.

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legal matters

'HARSH CONSEQUENCES' FOR CLUB PHYSICAL FRANCHISEE AS INJUNCTION GRANTED

7 March 2013 - The application for interim injunctions against the Club Physical franchisee who rebranded three Auckland gyms without warning has been granted

A VERY PUBLIC DISPUTE – THE STORY OF THE GYM FRANCHISE AND THE FRANCHISEE WHO TOOK DOWN THE SIGNS

April 2013 - A dispute between Club Physical and a multi-unit franchisee was only resolved after a lot of publicity and a lot of legal fees

ACT FAST TO PROTECT YOUR BRAND ONLINE

February 2015 - New domain name option leaves unwary franchises at risk of brand hijacking

AFTER YOU'VE GONE - HOW RESTRAINT OF TRADE AND IP ISSUES AFFECT FORMER FRANCHISEES AND IMITATORS

Stewart Germann and Harshad Shiba review three legal cases in New Zealand which protected the value of a franchisor’s intellectual property

AUCKLAND FRANCHISEES REPAY $125,000 IN MISSING WAGES

26 October – The Franchise Association and the Labour Inspectorate are urging franchises to check their systems after faulty payroll practices caused some Caltex franchisees to underpay hundreds of staff

AUSTRALIA'S JOINT EMPLOYER INQUIRY UNDER WAY

April 2017 - A number of submissions have been made to the Australian committee reviewing proposed legislation that would make franchisors jointly liable with franchisees on employment issues.

AUSTRALIAN RULING CONFIRMS CERTAINTY FOR FRANCHISE AGREEMENTS

27 August 2008 - The High Court of Australia has overturned a decision by a lower court that had huge implications for the integrity of franchise agreements in that country and possibly beyond.

‘OPEN SEASON ON TRADEMARKS’ AFTER GOOGLE WITHDRAWS PROTECTION

The Internet has become a riskier place for New Zealand franchises trying to protect their brand after Google announced it will no longer monitor or restrict the sale of AdWords in response to trade mark complaints

CAN YOU OPT OUT OF ARBITRATION?

December 2010 - A recent court case highlights the importance of arbitration clauses

CARTELS BILL IMPACT ON FRANCHISING COULD BE HUGE

June 2015 – A new law is possibly the most significant ever to have affected franchising in New Zealand, says barrister Deirdre Watson

COURT OF APPEAL DECISION BOLSTERS PROTECTION FOR FRANCHISORS

April 2010 - Last year’s judgement by the Court of Appeal that upheld the effectiveness of notices to franchise buyers that they should get their own specialist advice has been reinforced in another case.

COURT OF APPEAL UPHOLDS RESTRAINT OF TRADE ON FRANCHISEE

August 2012 - A recent Court of Appeal decision has upheld the right of a franchisor to enforce a restraint of trade clause, but reduced the period applicable to just three months

DELETE THE EVIDENCE, SOLICITOR TELLS FRANCHISEE

A solicitor who encouraged a franchisee to be dishonest to avoid falling foul of a restraint of trade provision has had their name withheld

DON’T SAY IT’S OVER - LEAVING A FRANCHISE DOESN'T MEAN YOU CAN JUST CARRY ON

June 2016 - Harshad Shiba reviews two recent cases involving well-known New Zealand franchises

EMPLOYMENT FRAUD A RISK FOR FRANCHISES

February 2017 - Employment issues continue to dog the franchise sector in Australia – are New Zealand franchisors prepared?

EXITING FRANCHISEE AND EXISTING CUSTOMERS - A COMPLICATED CASE

January 2014 - Ending a franchise relationship is often not a black and white exercise. Deirdre Watson details a case where a third party was drawn into a dispute over an attempt to poach customers.

FALSE FRANCHISORS PLEAD GUILTY

16 October 2009 - The Commerce Commission has welcomed the conviction and sentencing today of Stewart John Brown and Robert Llewelyn Parr

FIVE HABITS OF HIGHLY SUCCESSFUL FRANCHISORS

US law firm Faegre & Benson has suggested what it is that marks out great franchisors

FOLLOW THE RULES AND STAY OUT OF TROUBLE

March 2015 - Stewart Germann and Harshad Shiba review three recent cases with lessons for franchisees and franchisors

FRANCHISE AGREEMENTS ESCAPE CONSUMER LAW REFORM

Franchise agreements will not now be caught up in proposals by the Ministry of Consumer Affairs to reform consumer law. Originally, it was feared that some elements of consumer law might be extended into business-to-business standard form contracts, with suggestions that these might include clauses relating to unconscionable conduct and good faith.

FRANCHISE RESTRAINTS: CASE-BY-CASE APPROACH MEANS OUTCOMES VARY

October 2016 – Deirdre Watson shares three lessons on the most recent High Court cases involving restraints of trade and good faith in franchising

GETTING IN, GETTING ON

September 2009 - Bill Milnes provides a guide to immigration issues for franchisees and franchisors

GREEN ACRES RESTRAINT CASE' A WIN FOR FRANCHISING'

27 June 2014 - The CEO of Green Acres has hailed the result of an arbitration process with a former franchisee as a victory for the whole franchise sector.

HANDLING DISPUTES VIA MEDIA A LEGAL PERSPECTIVE

June 2012 - Two franchise disputes have been featured on high-profile television programmes recently. Here, David Munn expands upon his comments in the latest issue of Franchise New Zealand magazine about what franchisors can and can’t do legally to protect their brand.

HOLDING ON TO WHAT’S YOURS

March 2014 - Stewart Germann and Harshad Shiba review three legal cases which protected the value of a franchisor’s intellectual property

HOME SERVICES FRANCHISOR DITCHES BROTHER, REPAYS FRANCHISEES

10 June 2015 – Mr Green has responded to a series of negative articles by terminating a master licence agreement held by the franchisor’s brother

ICE CREAM CASE DEMONSTRATES NEED FOR TRADEMARK PROTECTION

The story of the Mr Whippy who wasn’t reinforces the need to protect your franchise at all times.

KAMIKAZE CONFLICT HOW DO FRANCHISE DISPUTES ESCALATE AND WHAT CAN YOU DO TO AVOID IT?

Jeff Giddings, Lorelle Frazer & Scott Weaven look at what drives franchisees and franchisors to damage their own systems during disputes

LAW SOCIETY'S FRANCHISE AGREEMENT PLAN UNDER FIRE

February 2011 - A plan by the Auckland District Law Society Inc to launch a standard format franchise agreement has drawn immediate fire from franchise specialists, with one prominent franchise lawyer calling it ‘inappropriate’ and ‘dangerous

MAJOR CHANGES TO AUSTRALIAN CODE RECOMMENDED BY FRANCHISE INQUIRY

December 2008 - The latest Inquiry into franchising in Australia, this time at Federal level, has recommended some significant changes to the Australian Franchising Code of Conduct.

NEW SAFETY LEGISLATION ADDS COMPLICATIONS FOR FRANCHISES

December 2014 - Changes in health and safety could be costly for franchisors and franchisees, suggests Nathan Tetzlaff of Gaze Burt

NO INJUNCTION TILL FULL TRIAL IN COFFEE COPYRIGHT CASE

January 2013 - A coffee franchise seeking to protect its copyright has been told it has a strong case but must wait for a full trial. The franchise team at Davenports Harbour Lawyers report.

OVERSEAS FRANCHISEES CALL FOR GREATER PROTECTION

May 2011 - A US body called the Coalition of Franchisee Associations has called for the introduction of a ‘Bill of Rights’ for franchisees, while a new Australian body is also concerned for franchisee rights.

PROPOSED ANTI-CARTEL BILL COULD INCREASE COMPLIANCE COSTS FOR NZ FRANCHISES

A draft bill before the Commerce Select Committee could see franchisors having to apply for exemption from laws designed to prevent collaborative activity among competitors, says FANZ

RESTRAINTS POSITION NOT ALL TIED-UP

Two recent cases before the High Court upheld the restraints of trade in franchise agreements. Can franchisors relax? Not necessarily, says barrister Deirdre Watson

RISK MANAGEMENT: WHAT HAPPENS WHEN IT ALL GOES WRONG?

October 2013 - David Munn looks back at a high profile court case and analyses the risks associated with restraint of trade clauses in franchise agreements.

WHO EMPLOYS A FRANCHISEE'S STAFF?

January 2015 - How far are franchisors responsible for the employment issues of franchisees? It's a hot topic overseas with major implications for New Zealand.

WHO OWNS THE CUSTOMERS? HIGH COURT DECLINES FRANCHISOR'S BID FOR INTERIM INJUNCTION

31 March 2014 – The High Court has declined to grant an interim injunction restraining an ex-franchisee from continuing to trade following the expiry of the franchise agreement.

 

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