Legal Matters
All Articles
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
The Right Side of The Law
December – 2022 Might some franchisors’ attempts to help their franchisees with financing, pricing or selling cause them to fall foul of some unexpected laws? Michael Bright investigates
No jabs franchisee loses business
27 January 2022 – A franchisee which advertised for unvaccinated staff despite the mandatory requirement for hospitality staff to be vaccinated has left the business after being fined $24,000 for breaching the mandate. The franchisor reportedly gave them 10 days to comply or leave
Rights & Wrongs
June 2020 – Stewart Germann and Khushbu Sundarji review lessons from three recent cases involving well-known New Zealand franchises.
Exploiting liquor store owners lose licences and franchise
27 September 2021 - Franchisors praised for taking a stand as former franchisee loses liquor licence after worker exploitation
Leases & Landlords
Paul Turner and Scott Goodwin of Goodwin Turner Commercial Lawyers offer some notes for franchisees regarding leases
Speaking terms - buying and selling a franchise
What happens to the franchise agreement when you buy or sell an existing franchise? Michael Bright provides a brief guide
Payroll problems could cost millions
19 November 2019 – McDonald’s has agreed to backdate miscalculated holiday pay for 10 years under an agreement with the Labour Inspectorate. It’s just one of many organisations, including the Police, that have been confused by complex legislation
The horrors of the Holidays Act
30 May 2018 - The Government has announced that it will review the Holidays Act 2003. This will be welcome news for franchises who are battling with compliance issues under the scrutiny of a Labour Inspectorate which announced last year it would be specifically targeting the franchise sector. The current massively-complicated Act makes it difficult to do the right thing no matter how hard employers try, as this article from November 2017 shows.
Employment issues: keeping franchises out of trouble
A Subway franchisee has made the company a ‘priority focus’ for Labour Inspectorate investigators. How can franchisors prevent a similar problem in their own networks?
Labour Inspectorate to target Subway franchisees
Updated 27 August 2019 – A Subway franchisee who failed to improve employment practices after a warning has made the company a ‘priority focus’ for investigators
Employment Law Changes - training material
The following material has been provided by Employment New Zealand to help business owners and franchisors understand the impact of the changes to employment legislation under the Employment Relations Amendment Act 2018, and to enable them to advise staff and franchisees accordingly.
Employment law changes - does your franchise comply?
January 2019 - The Employment Relations Amendment Act 2018 introduced a number of employment law changes that aim to improve fairness in the workplace and deliver decent work conditions and fair wages. The first changes came into effect in December 2018; the remainder will become effective in May 2019. Is your franchise prepared?
Joint employment status – latest
20 September 2018 - A proposed ruling from the USA on responsibility of franchisors for staff employed by franchisees could help influence international thinking on the issue
Wage cheat franchisees lose businesses
July 2018 – A franchisor has taken swift action against a franchisee found to have breached employment law
Criminalising cartels – how will it affect franchising?
23 February – New legislation amending anti-cartels legislation would mean franchises need to be more careful than ever to ensure proper compliance
Employment clampdown: penalties grow
26 February - Franchisors advised to ensure franchisees compliant as Labour Inspectorate investigations continue
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
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.
Employment fraud a risk for franchises
February 2017 - Employment issues continue to dog the franchise sector in Australia – are New Zealand franchisors prepared?
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
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
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
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
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
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
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
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.
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
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
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.
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.
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.
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
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
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
'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
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.
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
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
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.
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.
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.
can you opt out of ARBITRATION?
December 2010 - A recent court case highlights the importance of arbitration clauses
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.
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
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.
Featured Listings
Franchize Consultants (NZ) Ltd
Franchize Consultants is New Zealand's largest and most experienced consultancy providing specialist advice and assistance to prospective and existing...
Tereza Murray Franchising
We specialise in developing comprehensive and cost-effective franchise systems for small businesses needing a growth strategy that delivers profit,...
Franchise Accountants
Save time, money and tax by benefiting from our specialist franchise advice and proven accounting solutions. Your success is our business. Ring now 0800...
Goodwin Turner Commercial Lawyers
Goodwin Turner Commercial Lawyers aims to provide a modern, friendly, client-focused and efficient approach to your legal business requirements, with a...
Eftpos New Zealand
Eftpos NZ is your complete payments partner. Whether you have one site or 100, we have the scale, expertise and experience to meet all your in-store,...
