News Items

last updated 17/04/2020

Small business support inadequate, says FANZ

last updated 17/04/2020

17 April 2020 - FANZ demands consultation, more action to support small business

The Franchise Association (FANZ) has expressed disappointment in the Government’s failure to address rent relief in the recently-announced package designed to assist small to medium-sized businesses. FANZ has had no response to its letter of 2nd April which called for urgent action to prevent business closures similar to that which has been announced in Australia.

The letter points out that the franchise sector has a turnover equivalent to 11 percent of New Zealand’s GDP, yet while Government officials have met with the Property Council and other gig business groups such as banks, they have not consulted with representatives of the 37,000 (mostly small) franchised businesses.

FANZ has identified some key reasons why the support package announced so far will not work for many small to medium-sized businesses:

  • The loss carry-back will not work for all;
  • Landlords have been given the green light to demand payment;
  • The breathing space for tenants is inadequate;

These points are expanded upon in the letter – read the full text below.

The letter also quotes Stuart Nash, Minister for Small Business, as saying that in the absence of further support from the government, viable SMEs may be forced to close down permanently. ‘That is, in our view, a complete understatement,’ says FANZ.  ‘Many SMEs will close down permanently. In our view, in the light of the announcement, many will now make the decision to do so.’ It says that to avoid this, further support is needed now in the form of rent relief and cash.

Read the full letter by clicking the .pdf symbol on the right.

Order a Print Copy
Order a Print Copy