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.
Westpac is New Zealand's most experienced bank in franchising and the only bank offering dedicated franchise specialist managers throughout the country....
The synthetic grass industry is growing exponentially and the SmartGrass brand and solutions are at the forefront. Be your own boss and in total control...
If you are looking for a simple business opportunity with low risk and a high profit margin then Crest’s cleaning franchise opportunities tick every...
Make this your winning day, with a chance to join one of the most successful local franchised eateries in New Zealand. With more than 12 years of...