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 complimentary 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.
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.
New Zealand Natural back in Kiwi ownership 21st April 2021
14 April 2021 - Graeme and Harry Hart's family food business Walter & Wild has bought Emerald Foods Group for an undisclosed amount. The company, which includes the New Zealand Natural franchise, has been owned by a Hong Kong-based entity since 2015.
The business includes premium ice cream brands New Zealand Natural, Killinchy Gold, Zilch and Chateau, along with the licence to operate the Movenpick brand in New Zealand. Walter & Wild's portfolio also includes Hubbard's, Gregg's, Aunt Betty's, I Love Food, Hansells and Alfa One.
McDonald’s reveals impressive NZ shopping list 9th April 2021
9 April 2020 - McDonald’s New Zealand has revealed it spent $156.9 million on ingredients ordered from New Zealand’s primary industries in 2020. A further $222.5 million of produce was exported, bringing the total spent with Kiwi producers by McDonald’s to $379.4 million.
Climate Action Toolbox helps smaller businesses cut carbon emissions 30th March 2021
31 March 2021 - The Sustainable Business Network has created a free, comprehensive toolbox to help smaller businesses act on the climate.
Customers to get the credit for new franchisees 24th March 2021
25 March 2021 – Mobile franchise Harrisons is offering an incentive to customers to help find new franchisees
Housing policy to boost business ownership? 24th March 2021
24 March 2021 – Broker says housing policy could make buying a business a more attractive option for investors - but how many will do it?
Preview: Franchise Conference 2021 1st March 2021
The National Franchise Conference focuses on prospering in a changing world
More Taco Bell stores planned for NZ 25th February 2021
Restaurant Brands is planning to open 10 new Taco Bell stores in New Zealand and Australia in the coming year. There are already three outlets here, all company-owned. Restaurant Brands has not announced any plans to franchise them after turning in a positive result in its latest annual report.
While five weeks of lockdown cost the company $40m in sales, once alert levels shifted, sales were strong particularly for the company's KFC and Carl's Jr. brands. Same store sales for the full year were up 5.3 per cent.
Economic Overview - mixed blessings 16th February 2021
16 February 2021 - Despite a sharp bounce-back in economic activitity, growth will probably be subdued this year. Expect a wider economic lift-off when the border re-opens, says Westpac in its latest Economic Overview
Franchise survey: what a difference a year makes 15th February 2021
16 February 2021 – The first Franchising Confidence Index survey since January 2020 shows that franchisors and specialist service providers are feeling much more confident about the year ahead. Although the survey was conducted just before the current rise in Alert Levels, it compares well with January 2020 when Covid-19 was still a distant cloud on the horizon.
Covid-19 financial support for businesses - updated 15th February 2021
19 February 2021 - In December 2020, the Government announced the support that would be available to New Zealand businesses in the event of a resurgence of Covid-19. Given the current change in Alert Levels, here's an update from the team at Franchise Accountants.
Auckland businesses can register for travel 14th February 2021
15 February 2021 - Businesses inside the Auckland Alert Level Boundary can register online for travel documents allowing workers to cross boundaries
Franchise calls for changes to sick leave extension 5th February 2021
February 2021 - Supermarket franchise group Foodstuffs has expressed concerns about the planned increase to sick leave, saying that costs to businesses could double and it was unlikely that businesses will recoup these costs in productivity gains.
The company's Government relations head Melissa Hodd suggested Parliament’s Education and Workforce select committee should instead consider recommending an increase in the minimum entitlement to seven or eight days. It should also consider reverting back to a five-day minimum entitlement after the Covid crisis, she said.
Another suggestion put forward by Foodstuffs was that the Government should consider sticking to a five-day minimum entitlement while raising the cap on the amount of sick leave employees are legally entitled to carry forward from year to year from 20 days, to 25 or 30 days.
Coffee franchise launches collagen product 28th January 2021
28 January 2021 – Columbus Coffee cafés across New Zealand are launching collagen creamer as an option for wellbeing-conscious customers
Report finds demand for businesses outstrips supply 26th January 2021
January 2021 – A new report from ABC Business Sales suggests that the current business sales market is experiencing a significant gap between supply and demand, leading to increased prices. This could make greenfield franchise opportunities more attractive.
Calls for Covid scanner use to prevent more lockdowns 14th January 2021
Small businesses fearing they wouldn't survive another lockdown are calling for greater pressure on customers to make use of the Covid-19 tracer app now, rather than waiting for another community outbreak. The virulent new strains have already caused further lockdowns in many countries, and rapid tracing would be vital to the prevention of a new outbreak here. However, use of the tracer app among Kiwis has dropped off alarmingly, with many saying they will start using it again only if there is a new outbreak - by which time it will be too late.
In a Stuff article, First Retail Group managing director Chris Wilkinson said that the risk of not signing in to businesses is the “cataclysmic” shutting down of everything again.
“We’ve already seen what a second lockdown did to Auckland ... it was heart-wrenching to see the impact that had on businesses, the confidence of staff, and consumers.”
Wilkinson said scanning “peer pressure” should be encouraged, and political leaders needed to be actively scanning by example, and assigning scan “champions” to sectors.
In-store spend up, online down 12th January 2021
Kiwis ended 2020 on a strong note with a total retail spend for December of $6.1 billion, 2.3% higher than December the previous year. Figures from Datamine show that in the lead up to the holiday period, New Zealanders spent $620 million more than in November.
The figures also suggested that New Zealanders are supporting local by opting to spend in person rather than online.
In-store spend, at $5.4 billion, has grown 13.4% since last month and 4% compared with December 2019. As in previous months, online spend has continued to show negative growth compared to the same month last year, particularly spend at overseas companies, which is down 21.6%.
With a 48% drop in Travel and Accommodation spend, compared to December 2019, New Zealanders instead have spent money on:
Liquor Stores (18.6% year-on-year increase),
Furniture, Appliances and Homewares (15.1% year-on-year increase),
Health Goods and Services (13.1% year-on-year increase),
Clothing and Footwear (11.1% year-on-year increase)
(Datamine requires a log-in to see the full report)
Make a new start in 2021 10th January 2021
Supermarket franchisee goes large 10th January 2021
A prominent New World franchisee, Jason Witehera, is tipped to be the new owner of Pak'nSave Albany - one of the country's largest supermarkets which is thought to have the largest revenue of any in New Zealand. Mr Witehera is one of the rising stars of the Foodstuffs co-operative, having commenced his career as a shelf-stacker at age 16. Outgoing franchisee Paul Blackwell has reportedly become a director of an investment group which owns Starbucks New Zealand and is buying Burger King New Zealand from the receivers.
In a deal due to settle later this year and which could be for around $50 million, insiders say the transition is on although owners are yet to confirm that.
Insiders in giant co-operative Foodstuffs which owns the Pak'nSave and New World stores say it is common knowledge within the business about the sale which will then automatically trigger the sale of a second high-profile, highly profitable store because owners can only have one supermarket each.
Hollywood star's burger franchise to open in NZ 7th January 2021
Wahlburgers, the Boston-based restaurant company founded by brothers Mark, Donnie and Chef Paul Wahlberg, is expanding its international footprint with a franchise partnership that will span 20 locations across Australia and New Zealand. The Australian master franchisee plans to open five outlets here over the next five years. It is not yet clear whether the brand will be sub-franchised to individual operators.
'Over the course of my career I’ve had the pleasure of filming in Australia and New Zealand and am grateful for the opportunity to now share my family’s delicious recipes with the people of these great two countries,' says Mark Wahlberg. 'With 49 Wahlburgers locations across the USA, two in Toronto Canada and one on the American Ramstein Air Base in Germany, this expansion to Australia and New Zealand is a really exciting step in continuing to build this brand around the world.'
Racing Ahead to 2021 22nd December 2020
Thank you to all our sponsors, advertisers and readers for your support through this challenging year for all of us. We wish you all the best for a very Merry Christmas and a Happy and Prosperous New Year. Enjoy the summer - and if you do start to think about new opportunities, here are some resources.
Lower card fees planned for small businesses 9th December 2020
10 December 2020 – Government plans hard cap for merchant services fees to encourage contactless payment; consultation sought
How will the Privacy Act changes affect your franchise? 25th November 2020
25 November 2020 – As email attacks and fraud grow, new data privacy laws require businesses to be aware of their governance and compliance responsibilities
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