New Code of Practice and Ethics

A new Code of Practice and Ethics is the outcome of a process of reviewing and modernising the current Code of Practice and Code of Ethics in New Zealand franchising into a single, comprehensive document. Produced by the Franchise Association of New Zealand (FANZ), in consultation with its members, the final version of the new Code will be publicly available on the FANZ website from December 1. 

Coming into effect from that day — 1 December 2024 — FANZ members' new franchise agreements, master franchise agreements, preliminary agreements, independent advice certificates and Disclosure Documents are to be updated to reflect the provisions of the new Code by no later than 1 April 2025. Existing franchise agreements and master franchise agreements entered into before 1 April 2025 are not required to be updated until they are either renewed or amended. 

Parts of the new Code have particular relevance for franchisees of member franchise systems; now, a franchisee is required to comply with certain provisions 'as if it were a member'.

If you are considering purchasing a franchise and you are looking at a franchise system that is a member of FANZ, the franchisor is obliged to provide you with a copy of the Code at least seven days prior to signing the final franchise agreement. This is to ensure that you will be aware of the obligations expected of you, your franchisor and the other franchisees in the system to act ethically, honestly and lawfully in business and to act fairly in their dealings with each other.

From 1 December 2024 until March 31, 2025 all compliance checks submitted to FANZ will continue to be assessed under the existing Code of Practice and Code of Ethics, unless businesses opted into the new Code.

FANZ CEO Robyn Pickerill said, "Changes made to the new Code are generally focussed on providing better clarity and being less complex. From 1 April 2025, all compliance checks of a franchise agreement, disclosure document and related documents will need to meet the requirements of the new Code."

Pickerill added, "A sincere thanks to all members who provided very helpful feedback during this process, which has consequently led to positive changes for all."

As of December 1 2024, the FANZ Rules and Codes website page will be updated with the new combined Code.