In The News 
Burger economics - how McDonald's prices vary globally 18th October 2021
A study by Texas-based company Expensivity Inc has shared how the prices of popular McDonald's menu items vary around the world. A Big Mac which costs US$5.82 in New Zealand (NZ$8.20) will set you back US$21.89 in Lebanon, or just US$1.94 in Russia. It reflects the very different markets, rents, labour costs, finance costs, inflation, ingredients and, of course, tax regimes that international franchises have to address.
Lebanon also offers the most expensive McDonald's menu item in the world, the Grand Chicken Special at US$27.19. Next down is the gourmet-sounding Signature Charolais & Sauce aux 2 Moutardes offered in France and Monaco for US$14.38. It makes New Zealand's most expensive item, the Mozzarella Beef Burger at US$7.85, sound like good value.
The survey also determined the affordability of McDonald’s in every country by calculating the cost of 100 adult meals (a Big Mac, large fries and a large Coke) as a percentage of median income. As you might expect, Lebanon has the worst affordability due to inflation - buying 100 adult meals in Lebanon would cost 74.65 percent of the average annual salary. American McDonald’s is the world’s fourth-most affordable at 1.73 percent of annual income, while New Zealanders can expect to pay 3.63 percent (Australians pay less at 2.79 percent).
Expensivity has also published a World Beer Index showing that South Africans enjoy the cheapest beer in the world, while in Quatar a 100 percent tax on alcohol imports ahead of the 2022 World Cup has made its beer the most expensive in the world. Visitors also need a special permit to drink alcohol.
Increased job dissatisfaction levels point to change 14th October 2021
14 October 2021 – New research from AUT confirms international trends that many people across a range of different roles are considering changing their job. Will buying a business appeal?
Survey of Franchising under way – franchisors please help 30th September 2021
30 September 2021 - The 2021 Survey of Franchising will provide vital information for the sector. How can franchisors help, and why does it matter?
Commercial landlords to face compulsory arbitration 28th September 2021
Landlords may be forced into arbitration if they cannot agree to cut rents to tenants affected by Covid restrictions, under surprise changes announced - and to come into force - today.
Justice Minister Kris Faafoi announced that as part of the Covid-19 Response Legislation Bill introduced to Parliament, measures were being taken "to help businesses resolve disputes over commercial rent"
Exploiting liquor store owners lose licences and franchise 27th September 2021
27 September 2021 - Franchisors praised for taking a stand as former franchisee loses liquor licence after worker exploitation
Brand aid – lockdown solution for franchisees 23rd September 2021
24 September 2021 - When one franchise had too much work and the other had too little, two well-known franchise brands worked together
Open for business - safely 20th September 2021
20 September 2021 - As Aucklanders wait to hear if the region might go down to Level 3 soon, CIS Group has created a special deal for franchises on its contactless, foot-operated sanitation stations
Keeping your franchise network positive and resilient 16th September 2021
16 September 2021 - Valuable insights and tips from Greg Nathan, Founder of the Franchise Relationships Institute, based upon his recent presentation to Franchise Association of New Zealand members via Zoom
Finalists announced for Franchise Awards 13th September 2021
14 September 2021 – Many of New Zealand’s top franchise brands are among the finalists in the Westpac New Zealand Franchise Awards
How are franchisees coping? 2nd September 2021
How have franchisees responded to the latest Level 4 and Level 3 restrictions? Estelle Logan of V.I.P. Home Services checked in to find out
Calls for rental support ignored by Government 1st September 2021
2 September 2021 – The Franchise Association is among the organisations supporting an Opposition plan to support small businesses facing rental demands from unsympathetic landlords
Practical help with getting tax relief 30th August 2021
30 August 2021 – Philip Morrison of Franchise Accountants offers some practical guidance on how to help franchisees secure relief from IRD to spread out their tax burden and help with business resilience
Business Travel Register now open 29th August 2021
29 August 2021 - Businesses with workers needing to cross the Alert Level boundary between Auckland/Northland and other regions can now apply for Business Travel Documents if they meet the criteria for permitted travel
UPDATED - Covid 19 support - useful links 20th August 2021
Updated 10 September 2021 – With lockdown here again, here are some helpful resources for franchisors and franchisees from our friends at Franchise Accountants
How being a franchisee helps in lockdown 17th August 2021
How does being part of a franchise help when the unthinkable happens and the whole country goes into lockdown? Here are some lessons from 2020.
Free workplace advice for FANZ members 17th August 2021
14 July 2021 – Strategic partnership to deliver free workplace advice to FANZ members
Rapid escalation for NZ economy - Westpac 16th August 2021
17 August 2021 – The latest Economic Overview from Westpac suggests that, while the New Zealand economy has been charging ahead and built up a head of steam, it faces some growing pains and Covid-related uncertainties for a bit longer
Retail spend up in July 16th August 2021
17 August 2021 - New figures show that retail spending in New Zealand reached $5.2 billion in July 2021 – up 1.6 percent on the previous month, and up 3.8 percent over July 2020, although some categories fared better than others
Building big business 10th August 2021
Green Acres and Hire-A-Hubby launch game changer for managers and entrepreneurs
Buying a mobile franchise 3rd August 2021
Thinking of buying a mobile franchise or a man-in-a-van business? Here are some questions to ask
Prospa lends full allocation to support Kiwi small businesses 2nd August 2021
2 August 2021 – Prospa has exceeded expectations by lending its total government allocation under the Business Finance Guarantee Scheme to SMEs across New Zealand
Smith&Smith buys the Exceed franchise 2nd August 2021
2 August 2021 - Vehicle glass repair and replacement company Smith&Smith has acquired Exceed, the nationwide window and door hardware repair franchise.
New chair, vice-chair for FANZ 26th July 2021
26 July 2021 – Franchise Association’s new leaders share a wealth of experience from different sectors of franchising
Book on McDonald's and the black community wins Pulitzer 23rd July 2021
A new account of the complicated role the fast-food industry plays in African-American communities has been awarded the USA's top prize for journalism. Franchise: The Golden Arches in Black America, by Marcia Chatelain, is 'a portrait of race and capitalism that masterfully illustrates how the fight for civil rights has been intertwined with the fate of Black businesses.'
The book looks at the black community as franchisees as well as customers, explains Jennifer Jennifer Szalai of the New York Times. 'This isn't just a story of exploitation or, conversely, empowerment; it's a cautionary tale about relying on the private sector to provide what the public needs, and how promises of real economic development invariably come up short. . . . Franchise is a serious work of history. . . . [Chatelain's] sense of perspective gives this important book an empathetic core as well as analytical breadth, as she draws a crucial distinction between individuals actors, who often get subjected to so much scrutiny and second-guessing, and larger systems, which rarely get subjected to enough.'
Karla Strand of Ms. Magazine calls it, 'An impeccably researched examination of McDonald's and how the franchise was once intended as a path to economic freedom in Black communities. A fascinating, overlooked perspective on a US institution.'
Receiving one of the top prizes in journalism is sure to draw more attention to the company's relationships with the black community in the USA.
Peers rally around flood-stricken franchisee 23rd July 2021
Fellow franchisees and suppliers have come to the aid of an immigrant family who lost their belongings in the West Coast floods
Free workplace advice for FANZ members 14th July 2021
14 July 2021 – Strategic partnership to deliver free workplace advice to FANZ members
Seven tips for getting your customers to scan in 8th July 2021
July 2021 - As Covid scares continue, with Wellington the latest to suffer restrictions, encouraging customers to scan in continues to be vital to protect people and businesses. Here's some good advice on making it easy.
How can buying a franchise change your life? 27th June 2021
How can buying a franchise help you to achieve the goals you have for yourself and your family?
Owning your own business is about more than money or lifestyle. For some people, it’s about getting a better education for their children, or living how or where they want. For others, it’s about healthy living, overcoming setbacks or investing for a financially-secure future.
To find out more, we talked to four franchisees in two very well-established New Zealand franchises – CrestClean, which is celebrating its 25th anniversary this year, and Rodney Wayne, which has been franchising for over 30 years.
Hospitality businesses starting to bounce back - Xero 24th June 2021
The hospitality industry is bouncing back and May was its strongest month since the start of the pandemic, the latest small business insights report from Xero says.
Sales in hospitality grew an adjusted 7.5 per cent in May 2021 while retail grew most at 8.8 per cent and construction grew 7.6 per cent.
'After months of negative results, the hospitality industry has started to see an upswing,' Xero managing director for New Zealand & Pacific Islands, Craig Hudson said.
But Wellington’s restrictions back to alert level 2 would send a shiver through the industry, Restaurant Association chief executive Marisa Bidois said.
Australia to require disclosure documents to be made public 31st May 2021
May 2021 - Australia is to establish a mandatory Franchise Disclosure Registry from 2022, raising concerns about commercial confidentiality. Jason Gehrke reports
Survey highlights resilience and optimism of small business owners 31st May 2021
31 May 2021 – A new study has given insight into the impact the Covid-19 pandemic has had on the small business sector in New Zealand. Almost 60 percent feel that their business is more resilient and sustainable today
Side hustle - a part-time business or a passive investment? 29th May 2021
Can a franchise be a part-time business or a passive investment?
Google ‘side hustle’ and you’ll get lots of links to ‘Make $$$ in your spare time!’ – some genuine, many dodgy or unrealistic. The best-known ones are Uber or Airbnb, where you use an existing asset to generate extra income. But what if that doesn’t appeal – or you want something with greater potential? Can a franchise be a part-time business or a passive investment? Here are some options, with pros and cons.
Domino's apologises after franchisee's relative leaks jobseeker details 24th May 2021
25 May 2021 - The actions of the former employee of a Domino's franchisee who leaked job seekers' information on Instagram, along with mocking comments, have been condemned by the franchise.
A Domino’s New Zealand spokeswoman said the company unreservedly apologised to anyone affected by the privacy breach and it would take appropriate steps to address the matter after a thorough investigation. According to Stuff, the Instagram account belonged to a relative of a multi-unit franchisee, who until recently had worked at one of their three local stores.
According to Netsafe, the former employee's actions may constitute a breach of the Harmful Digital Communications Act or the Privacy Act.
New master franchisee award announced 20th May 2021
20 May 2021 - A new category has been added to the Westpac New Zealand Franchise Awards this year to recognise the work done by regional master franchisees, who work at a local level to help recruit, train and support their own team of franchisees within a larger system.
Find out more about the Awards.
Awards Categories
Franchise event in Christchurch 13th May 2021
14 May 2021 - The Franchise Association is running a Twilight Event in Christchurch on Wednesday June 2nd. Franchisees, franchisors and local franchise support teams are all warmly invited, whether FANZ members or not. This is a great opportunity to network with others in the franchise sector in Canterbury in a relaxed atmosphere. There is no charge, and drinks and nibbles will be provided courtesy of sponsors Westpac and Harmans Lawyers.
LATEST – Lease dispute mediation scheme still available 10th May 2021
11 May 2021 – The Ministry of Justice has advised that the Dispute Resolution Scheme aimed at helping resolve commercial lease disputes arising from Covid-19 is still available, but that eligibility will be considered on a case-by-case basis.
Burger King NZ sold for $30 million 6th May 2021
The troubled Burger King NZ operation was sold to the Tahua Capital investment group for $30.48 million, it has been revealed. Tahua already owns the New Zealand Starbucks master licence, which it bought in 2018.
According to receiver Brendon Gibson’s report the secured creditors of Burger King, including ANZ, ASB and Rabobank, were owed more than $50 million. The banks supported the receiver's compromise deal, and had agreed to share half of any sale proceeds over $30m if the company was sold as a going concern.
All Burger King outlets in New Zealand are owned by the master licensee, with no individual franchisees affected. Five company-owned stores were closed when the company went into receivership in April 2020.
Lockdown lease disputes – recent decisions provide hope 6th May 2021
UPDATED 11 May 2021 – With some landlord/tenant disputes continuing to cause distress, two recent decisions involving hospitality businesses offer hope to tenants. Paul Turner and Scott Goodwin provide some background and look at the implications.
2021 Franchise Awards open for entry 4th May 2021
May 2021 – After a year off, the Westpac New Zealand Franchise Awards are back for 2021 in a new format which makes entry easier and more attractive than ever.
Small business bouncing back, says Xero 4th May 2021
Xero's new Small Business Index shows that the small business sector is performing better than average. The index rose 17 points to 122 in March, up 16 percent from February, and all four sub-metrics of sales, jobs, time to be paid and wages improved during March. It was the second month the index was above 100, indicating that overall small business had made a solid start to 2021, Xero said.
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