In The News

17 October 2019 – Could your business go national or even international? Find out more about franchising and licensing at these free seminars

11 October 2019 – Who will win the 2019 Westpac New Zealand Franchise Awards?

8 October 2019 – A ranking of global franchises shows which brands are performing most strongly and identifies sectors to watch

4 October 2019 – Taco Bell will open its very first New Zealand restaurant in West Auckland

2 October 2019 – The Commerce Commission has warned Hell Pizza that its advertising of the “Burger Pizza” was, in the Commission’s view, likely to have breached the Fair Trading Act 1986.

Mina Phillips and Simon Lord look at how two New Zealand franchises are expanding overseas.

26 September 2019 – Andrew Skinner and Khushbu Sundarji of Stewart Germann Law Office discuss the potential impact on franchising of proposed changes to the Fair Trading Act

24 September 2019 – Proposed changes to the Fair Trading Act would extend current consumer protections against unfair contract terms to apply to business contracts with a value below $250,000

20 September 2019 - Our recent article about the possible impact of new rubbish regulation on food and retail franchises mentioned the concept of product stewardship. Here's a plain English guide to how it works from wasteMINZ, the Waste Management Institute of New Zealand.

Read more at https://www.wasteminz.org.n...

MBIE is warning of a sophisticated fake invoice scam  attacking small businesses. Emails from an attacker pretending to be a recognised supplier contain fake invoices and attempt to trick the business into paying the invoiced amount into the attacker’s account. The invoices look legitimate because the attackers have previously attacked an employee’s email account. In organisations such as franchises, where many people may share similar email addresses or platforms, one weak password can leave you vulnerable. CERT NZ recommends four measures to help keep franchisors and franchisees safe.

Read more at https://www.business.govt.n...

20 September 2019 - California's AB5 law, which could see franchisees classified as employees, has been called a 'cannon aiming at a mosquito' by the International Franchise Association. The law, which is designed to protect workers in the gig economy such as Uber and food delivery service drivers, but could affect the franchise business model as collateral damage. The IFA has asked for franchisees to be exempt from the law, which comes into force on 1 January 2020. Uber and food delivery companies Lyft and Doordash say they have pledged $90 million on a ballot initiative next year that would exempt them from AB-5.

Read more at https://www.franchisetimes....

Hell's use of fake meat in burger toppings without telling customers didn't meet food standards but the company won't face formal action from the Ministry for Primary Industries. Instead, the company has been given 'education and advice'. A separate investigation by the Commerce Commission is ongoing. The promotional stunt, which Hell said was 'to start a conversation and raise awareness about sustainable food choices', highlighted a number of current trends and issues in food franchising which are covered in the latest issue of Franchise New Zealand.

The ministry had taken several factors into consideration when deciding what action to take, including Hell's agreement to follow its advice in any future campaigns, improved allergen information on the company's website and the fact it hadn't previously been the subject of similar complaints.

Read more at https://www.stuff.co.nz/bus...

August 2019 – Columbus Coffee franchisees all over the country will be doing their bit for Cure Kids on Red Nose Day

From the Archives: 2019 - A Subway franchisee made the company a ‘priority focus’ for Labour Inspectorate investigators. How can franchisors prevent a similar problem in their own networks?

August 2019 – The Ministry for the Environment is seeking submissions after publishing a consultation document  which would see retailers and hospitality businesses responsible for specified products and packaging at their end of life

14 August 2019 - Legislation currently pending in the Californian state legislature could significantly affect the future of franchising in that state - and set a precedent for other US jurisdictions

21 August 2019 – Escalating trade war will affect NZ, but economists think the Reserve Bank’s actions will prove effective for now. A short-term rise in unemployment could ease staff shortages for franchisees

From the Archives: 2019 – A Subway franchisee who failed to improve employment practices after a warning has made the company a ‘priority focus’ for investigators

July 2019 – The world’s biggest food franchise is also one of the ten hottest brands on the planet, according to a recent report

July 2019 – One of New Zealand’s best-known home-grown franchise brands is gradually disappearing from our streets as Fastway Couriers rebrands

8 July 2019 – Dropping the CGT has helped franchise confidence increase, but worries remain about costs and staffing

1 July 2019 - A  stunt which saw Hell Pizza add plant instead of meat patties to its pizza toppings without telling customers and saw the popular franchise called to a meeting with the Ministry for Primary Industries has now caused further problems. While the company says it wanted to introduce customers to alternative proteins in an unexpected way, it has been suggested that Hell could be in breach of both the Food Act and the Fair Trading Act, and the Commerce Commission has launched an investigation.

Read more at https://www.stuff.co.nz/bus...

18 June 2019 – A new survey shows that running your own business can be stressful and frustrating. How does being part of a franchise help?

18 June 2019 – Liquor store franchisee fined after failing to address employment issues

17 June 2019 - McDonald's Sweden has created the 'world's smallest restaurant' - a replica drive-thru that's a fully-functioning beehive. It's designed to be installed on top of restaurants world-wide to draw attention to the plight of bees, and the plan seems to be working with massive online coverage. How many McDonald's are sited near suitable sources of pollen for bees remains to be seen - and wait for the first lawsuits from stung customers who blame the brand ...

Incidentally, It’s said that every third bite of food in the human diet relies upon bees. As well as the news item about McDonald's roof-top hives, then, here's a fascinating article from the BBC's Science Focus magazine on the contribution of bees to the Big Mac.

Read more at https://www.stuff.co.nz/lif...

A new report has found that almost 33,000 people left Auckland for other parts of New Zealand over the four years to June 2017, with housing affordability and traffic being among the key reasons. The average Aucklander apparently spends around 450 hours per year in a car, either as driver or passenger - three times as much as the next highest area (Christchurch). While the exodus from Auckland is offset by immigration and a positive inflow of New Zealanders in the 20-24 age group, there are high outflows of people in their late 20s and 30s - the peak working years for many people. Read the full report.

The trend is reflected in the growing interest of many franchise buyers in regional opportunities. As this article revealed, many of New Zealand's most profitable franchises are based in the regions rather than the big cities, and recent winners of the Westpac Supreme Franchisee of the Year title have come from the provinces.

Read more at https://www.stuff.co.nz/bus...

22 May 2019 – The latest Quarterly Economic Overview from Westpac predicts more stability in the global economy and the NZ economy to exceed 3 percent GDP growth. What will this mean for franchising?

May 2019 - Franchisors, franchisees and master franchisees are encouraged to enter the 25th Westpac New Zealand Franchise Awards

April 2019 - The news that the Government has shelved plans for a Capital Gains Tax for the foreseeable future has been welcomed by many in the franchise sector.

29 April 2019 – The Labour Inspectorate has reminded individuals, including business directors, senior managers and legal or business advisors, that they can be held personally responsible even if they are unofficially connected to a business that breaches minimum employment standards.

11 April 2019 – The franchise sector remains nervous about the current business outlook, though more positive than general business

April 2019 - Franchises are facing an interesting decision over social media advertising as New Zealand seeks to apply pressure on companies such as Facebook by withdrawing advertising pending the development of better content controls following the Christchurch shootings. The latest move sees the UK Superannuation Fund calling on more Government funds worldwide to join the campaign.

How should franchisors respond, especially if the movement starts to attract followers at customer level? Social media advertising can be a vital part of many promotions and it's a tough call for franchisees effectively to be penalised by the suspension of campaigns, even for the best of reasons. However, it's a discussion many will have to have if the social media giants refuse to engage and respond to calls for better safeguards.

Here at Franchise New Zealand, we have suspended our own paid advertising on Facebook. We are not big advertisers on Facebook and recognise that this will have very little effect upon that company, nor will it affect our own advertisers, but we support the campaign. We continue to post free information about franchising in New Zealand on our website and social media pages for the benefit of our readers, and are continuing with Google advertising. We will continue to review our position as the campaign progresses.

Read more at https://www.stuff.co.nz/bus...

25 February 2019 ­– With a proposed capital gains tax the major talking point at the moment, Philip Morrison of Franchise Accountants looks at possible implications for franchisors and franchisees