In The News 
Restaurant Brands to end zero-hours contracts
9th April 2015
Restaurant Brands has agreed with Unite Union to end zero hours contracts at its outlets by the end of July. Unite has 2000 members working in the company's KFC, Pizza Hut, Carl's Jr. and Starbucks brands.
Unite's national director Mike Treen said it was a giant step forward for the industry.
'Restaurant Brands is a public company, and I think that they recognised New Zealand society has moved on; that it's no longer acceptable in 21st century New Zealand for this type of contract to exist, so they're looking for a way to move with the times.'
The Unite Union is now setting its sights on other major fast food chains. It will mount a campaign to try to convince McDonald's, Burger King and Wendy's to end zero hour contracts.
'It is time for New Zealanders to tell these profitable multi-national chains that they need to stop taking advantage of their often young and vulnerable workers and put an end to a labour practice that the people of New Zealand have made clear they find unacceptable,' said Mr Treen.
Mad Butcher liquidations a 'coincidence of timing'
7th April 2015
Publicly-listed Veritas Investments, franchisor of the Mad Butcher chain, has said that the liquidation of four of its franchisee-owned outlets this year is a coincidence of timing rather that a sign of deeper problems. 3 of the stores have remained open under Veritas ownership, which also operates 2 other stores in the 40-strong chain.
The National Business Review, citing industry sources, has reported that more Mad Butcher stores are in financial difficulty, which chief executive Michael Morton last week called "grossly inaccurate".
In February, Veritas reported a 16 per cent decline in first-half profit to $1.7 million as acquisition costs mounted during a buying spree, and warned annual earnings may be at the low end of guidance depending on how its new businesses perform.
Revenue jumped 89 per cent to $27.4 million. Of that, the Mad Butcher business lifted revenue 14 percent to $16.6 million.
Clothing and quilts needed for Vanuatu
7th April 2015
New conference for franchise support professionals
25th March 2015
Practical workshops for NZ franchisors
23rd March 2015
Taco Bell not coming to NZ despite billboard (probably)
12th March 2015
Restaurant Brands has denied that it is behind a newly-erected sign in Auckland's Ponsonby saying 'reading "Taco Bell - Because Ponsonby Road needs another Mexican restaurant.' Restaurant Brands has long been regarded as the favourite to bring the Mexican food franchise to New Zealand, as it has rights to other franchises in the Yum! Brands stable such as Pizza Hut and KFC, but has denied any knowledge of the sign. It said it was evaluating the possibility of launching Taco Bell here in 2011 and again in 2013 following the success of Mexicali Fresh and other Mexican-style outlet. The sign looks quite professional, though...
Taco Bell has found it difficult to gain traction in any market outside North America, with failed attempts in markets as diverse as China, Poland, Singapore, the UK and even Mexico itself. Taco Bell opened in Australia in 1997 with a stand-alone store and a few store-within-a-store concepts in KFC branches, but by 2005 they had all gone.
Fast food fans are salivating over the prospect of Taco Bell opening in New Zealand, but the rumours could yet prove to be a tantalising hoax.
A Taco Bell-branded sign has popped up in the Auckland inner-city suburb of Ponsonby, reading "because Ponsonby Road needs another Mexican restaurant".
The fast food franchise, known for its sardonic humour, is apparently referencing the fact that the popular dining strip is already home to Mexicali Fresh, Mexico, and Mad Mex.
Taco Bell could not be reached for comment, and it is not yet clear whether any other company has franchise rights in New Zealand.
Mr Green franchisor stands behind master franchisee brother
9th March 2015
Mr Green franchisor Julian Smith has said his brother Dean Smith retains his confidence despite the master franchisee for Wellington facing high profile disputes.
Dean Smith is in trouble again in Wellington with a franchisee wanting his investment returned. Dennis Krishan bought a Mr Green franchise from Smith's company in November for $21,000. Krishan claims he is now owed $3000 for cleaning work and had spent $2000 on legal fees.
The company, Mr Green Property Management Ltd, which was struck off the companies register on January 28, supplied equipment and a list of customers who paid Krishan directly.
Julian Smith said his brother was embroiled in a "couple" of disputes in Wellington but overall franchisees were happy. His brother retained his confidence and had just "bitten off more than he can chew".
Bold new look for Esquires NZ
4th March 2015
Mexicali Fresh buys Burger Wisconsin
3rd March 2015
Mariposa Restaurant Holdings (MRH), the company behind the fast-growing Mexicali Fresh franchise, has bought burger chain Burger Wisconsin for an undisclosed sum. This gives MRH a foothold in the gourmet burger market, a leading part of the growing 'fast casual dining' segment in which Mexicali Fresh also operates. Owning two complementary brands offers obvious advantages of scale as well as greater site selection opportunities.
MRH is a well-funded operation which includes investment from iHug founder Tim Wood.
MRH general manager Nathan Bonney said the company's "tried and tested" franchise support and management team could be rolled out to other brands.
There is a real opportunity here to drive and support growth for both brands.'
The locally owned and operated Burger Wisconsin pioneered gourmet burgers in New Zealand, with combinations such as avocado and bacon and camembert and cranberry.
It now has 22 stores throughout the country, all of which are run by local franchisees.
Mexicali Fresh was founded by John and Cindy Buell, who moved to New Zealand in 2005 after running Mexican restaurants in the United States. It has 11 stores in the Auckland region (soon to be 12).
Lawyer threatens court action over copied franchise agreements
26th February 2015
Mad Butcher owner confirms 'solid' half year profit
26th February 2015
Fastway announces new global marketing manager
26th February 2015
Esquires becomes third-largest Kiwi employer in China
19th February 2015
Cooks buys back Esquires master franchise as Chinese company takes shareholding in NZ-listed company
Joint employers issue raises head again
16th February 2015
Another case in the US could see franchisors targetted as joint employers responsible for the actions of their franchisees - a ruling which franchisors say overturns years of precedent. The case involves a Papa John's pizza franchise in New York which is alleged to have underpaid workers and failed to pay overtime. Interestingly, the ruling prevents the franchisee from selling its stores unless the proceeds from such sale are deposited into an escrow account of the attorney general on behalf of the former employees.
New York Attorney General Eric Schneiderman in December sued Emstar Pizza Inc., which operates seven Papa John’s franchise locations in Brooklyn and Queens, alleging that Emstar underreported hours worked by employees over the past six years, rounded employee hours down to the nearest hour, and did not pay overtime.
Attorney General Schneiderman is also considering legal action against the franchisor, Papa John’s International Inc., on the theory that it is a joint employer and thus liable for the actions of its franchisees, according to reporting from the New York Post.
The National Labor Relations Board in July ruled McDonald’s a joint employer and thus liable for labor or wage violations at its franchise locations in a first-of-its-kind decision that represents a significant victory for workers’ rights advocates. Corporations like Papa John’s and McDonald’s employ about two-thirds of the low-wage workers in this country, but have so far mostly avoided liability for the illegal actions of their franchise owners under the theory that, despite sharing a common corporate brand, each franchise is independently owned and operated.
Pita Pit to support World Masters Games in Auckland
13th February 2015
New franchisees in demand as franchising forecasts good year ahead
12th February 2015
NZ sales growth helps Dominos to record profit
11th February 2015
Attracting millennials may not be easy for McDonald's
5th February 2015
As McDonald's NZ trials a custom-built burger programme in its Balmoral restaurant, US commentators are suggesting that Create Your Taste faces considerable challenges by adding further complexity and confusion to the operation.
Robert Passikoff is the founder and president of New York-based Brand Keys Inc., a consultancy that seeks to predict consumer behavior trends and brand engagement. He questioned McDonald’s brand research in a recent article.
"If Google’s slogan is ‘Do no evil,’ McDonald’s unofficial corporate slogan seems to have been ‘We can do that, too,’” he said.
As part of its Loyalty Leaders list, Brand Keys asked 1,000 consumers in each of three generations, boomers, Gen X and millennials, about fast-food and fast-casual restaurants. Conducted in late 2014, the survey found recent declines reported by McDonald’s, Burger King and Taco Bell mirrored the downward loyalty shifts seen in the survey’s results.
Brand Keys’ research contained a few other McNuggets: a 20 percent year-over-year decrease in fast-food visitation among millennials (down 18 percent among baby boomers), 42 percent of surveyed millennials increased visits to fast-casual restaurants and 53 percent called McDonald’s offerings “dollar food”—not a compliment.
“They’re not necessarily suggesting that it’s good because it’s cheap,” he said. “Millennials are looking for value. Even if they don’t have a lot of money, they’re still looking for value.”
UK High Court upholds restraint on ex-franchisee
5th February 2015
A decision in the High Court in London has confirmed once again that carefully-drafted restraint of trade clauses will be enforceable against former franchises. The judgment awarded an interim injunction against the former franchisee, awarded 92 percent of the claimed costs to the franchisor, and left the franchisor with the option of pursuing an additional damages claim. Read more about restraint of trade issues in New Zealand.
Ms Read carried on trading in the oven cleaning business in her former territory following termination, again a fact she did not deny. Ms Read (who appeared in person at the hearing) admitted to the judge that she wanted to carry on trading in her former territory as it had taken 18 months to build up the business within that area and she would have to start again if she was prohibited from working in that territory.
As the judge pointed out, Ms Read was openly admitting that she used her franchise business as a springboard to set up her own, competing business which is precisely what restrictive covenants are designed to prevent and it is the goodwill in the franchisee's territory that a franchisor is entitled to protect.
Quantum shift for McDonald's NZ
29th January 2015
Mt Maunganui franchise entrepreneur wins global recognition
27th January 2015
Mobile safety supplies franchise bounces back after quakes
23rd January 2015
Franchisee 'fed up' as master fails to perform
20th December 2014
An Indian immigrant who bought a Mr Green franchise in Christchurch fears that he has lost his $19,500 investment after the local master franchisee was struck off the Companies Register. The master franchisee, Richard Dean Smith, says that the money will be refunded in stages.
His lawyers Lane Neave say under the franchise agreement, Thomas was supposed to receive two weeks' training, during which he would be paid by MGC, and MGC was supposed to provide a list of customers that would return about $1000 a week initially.
The business was supposed to start on September 25 but no training and no customers came in the first few weeks.
Thomas said he began to worry and Smith was increasingly more difficult to contact.
When he did talk with Smith, he "was always promising something would happen next week."
Surf or turf? McDonald's launches summertime burgers
17th December 2014
Wage-docking franchisee to sell up
16th December 2014
A Night'n'Day franchisee in Masterton is selling his franchise after his actions led to calls for a boycott of Night'n'Day and petrol company Gull. Franchisee Nick Lucas apparently docked employees' wages if customers drove off without paying for fuel.
Masterton employment lawyer Jills Angus Burney said she had received information that Lucas had been forced to sell by Gull and Night 'n Day after boycott calls.
"He has been required to relinquish his franchise because the parties to the franchise are unhappy with the financial impact of the publicity around the illegal deductions."
Night 'n Day chief executive Tony Allison denied forcing Lucas to sell. "I wouldn't say we brought it about, I'd say Nick brought it about . . . Nick came to his own conclusions."
Allison conceded the bad publicity had affected sales nationally, but said it was too soon to blame anyone, as an investigation was still under way.
NZ childcare franchise launches in Ireland
12th December 2014
Fireworks skyrocket Hell sales to record level
8th December 2014
$50,000 grants available for Pacific businesses
7th December 2014
Mr Rental acts quickly over women's refuge concerns
29th November 2014
The Mr Rental franchise has acted quickly to address concerns raised in the Christchurch Press over debts run up by two clients of Aviva, formerly Christchurch Women's Refuge. In an apparent misunderstanding, one of the women used a loan from the agency intended for the purchase of household goods to rent them instead. Another woman spent $30,000 renting items over a few years. Mr Rental has said the franchisee in question 'may have operated outside the recommended franchise business model' and has reportedly offered to wipe the slate clean for both customers.
One of Aviva's loan recipients, a beneficiary, paid $8000 over 18 months to rent a "substantial" list of household items from Mr Rental in Blenheim Rd, she said.
"I believe she [thought] it was a rent-to-buy situation. Yes, it's consumer responsibility but what if [people] don't understand the language? I genuinely think the option to rent is good for some circumstances [but] whose responsibility is it to say, 'How long do you want it for?'
Mad Butcher owner considers share buy-back
26th November 2014
Veritas Investments, owner of The Mad Butcher, is looking at a buy-back of its shares, which it considers under-valued. It is also to buy the Better Bar Company.
'At the company's annual meeting in Auckland yesterday, chairman Mark Darrow said the Veritas board would investigate a buy-back as part of a review of its capital structure early next year. Shares in Veritas last traded at $1.25, below the $1.30 price it listed at after buying the Mad Butcher chain in May last year.'
Champions of franchising recognised
25th November 2014
RFG pulls out of La Porchetta purchase
17th November 2014
17 November 2014 - Retail Food Group has terminated its planned purchase of the La Porchetta franchise, although discussions are continuing. The purchase of Cafe2U, which was anounced at the same time, has been completed.
In an announcement to the Australian Securities Exchange this afternoon, RFG said the share purchase agreement (SPA) for the La Porchetta deal has been terminated but discussions are continuing.
“The SPA was subject to a number of conditions, including satisfactory completion of the company’s due diligence investigations,” said RFG.
“RFG advises that the foregoing condition has been satisfied, and as a consequence, the SPA has been terminated.”
“Notwithstanding the forgoing, RRG is presenting engaging with the La Porchetta vendors in connection with those matters which have influenced the above outcome, and will keep the market advised of any future developments.”
NZ Franchise Awards 2014 - Should've gone to...
16th November 2014
15 November - Specsavers is the 2014/15 Franchise System of the Year and Ivy Joe of The Coffee Club is New Zealand's top franchisee for the third year in a row - possibly a world record!
Mike Pero wins fight with law firm
13th November 2014
Christchurch franchisor Mike Pero has won a fight to stop law frim Buddle Finlay acting both for and against him
The decision by Buddle Findlay to act for MPM while still acting for Mike Pero in Christchurch was first challenged by Pero back in June, he said.
"I raised the conflict of interest immediately when I heard they had decided to act for and against me. I thought from the beginning they could not possibly be serious.
"I spent weeks trying to persuade Buddle Findlay against what I considered to be unethical," he said.
Kids' charity cups bring Christmas cheer to The Coffee Club
12th November 2014
BurgerFuel profits up 122 percent
12th November 2014
12 November 2014 - BurgerFuel has reported a net profit after tax for the 6 months ended 30 September of $213,215, a 122% increase on the same period last year.
'Group Operating Revenue was up 27.1 percent to $8.5M with BurgerFuel Total System Sales up 29.4 percent to a record $38.6M for the 6-month period. System sales growth continues and BurgerFuel rolling weekly system sales are now in excess of $1.5M per week.
Franchises suffer as Immigration New Zealand changes rule interpretation
10th November 2014
A change of attitude by Immigration New Zealand has made it harder for franchisees to find suitable staff at a time when unemployment is declining. One franchisor has already contacted Franchise New Zealand to draw attention to the problem, while availability of suitable staff was identified as a significant barrier to growth in the recent Franchising Confidence Index survey.
According to immigration specialists Laurent Law, the definition of retail, cafe/restaurant managers and office managers requires that such a manager must 'organise and control' key aspects of the business - inclluding such 'high-level' matters as budgets, pricing of products and advertising. Because those aspects are substantially decided centrally within a franchise, someone working in a franchise 'has so little control over those high-level functions that they are simply not managers' - so their Residency application is likely to fail. Read the full Laurent Law article here.
The NZAMI has apparently lobbied Immigration NZ about this to little effect - perhaps it's time for the Franchise Association, Retailers Association and Hospitality NZ to join forces?
'... although the IAC mentioned above requires Immigration officers to consider each case “holistically” – looking for instance at the size of the operation, the organisation of the branch where the applicant works and so on – to decide how much responsibility they actually have, in fact we see them focusing on ticking off the Core Tasks of the job (according to ANZSCO) as not being performed by the applicant, even though the person actually exercises considerable skill to run a department of a large store. We therefore see the ludicrous situation that someone who manages a High Street clothing shop with 2 other staff will be approved Residence, while another person with 20 staff to run, who is required to apply the complex policies of a division of a department store, will be declined.
Why is this situation so fatal? Well, according to immigration Policy the ANZSCO is a Bible which lists every job that exists. In the Skilled Migrant system, your job has to match some occupation on the ANZSCO. In the case of retail, you are either a Retail Manager – which is “skilled employment” and gets you points toward Residence – or you are a Retail Supervisor who runs a team of staff and whose job is not skilled enough, so you don’t get points. And in almost all cases you must have skilled employment before they will give you Residence. In many cases whole application fail on this point alone.'
Lollipops Educare, Porse and others to float on NZX/ASX
10th November 2014
10 November 2014 - Lollipops Educare and Porse Group are among the brands to be acquired by the newly-created childcare conglomerate Evolve Education Group if a Trans-Tasman IPO is successful.
The offer will be available to New Zealand and Australian resident clients of New Zealand and Australian brokers who receive an allocation from Evolve, as well as to institutional investors in these countries and other selected jurisdictions, the company said in a statement at midday.
There will be no general public offer.
Showcase - Shingle Inn launches in NZ
10th November 2014
One of Australia's most successful café chains is coming to New Zealand and looking for franchisees for some of the country's top locations.
Shingle Inn currently operates a network of over 45 cafés across Australia. Now the award-winning franchise is inviting Kiwis to join the family and embrace the culture and tradition that have become part of the quintessential Shingle Inn café experience.
You can subscribe to our news feed using RSS. Need to know more? Read up on RSS at www.whatisrss.com
Featured Listings
Speed Queen Laundry Systems
Enjoy semi‑passive income with your own Speed Queen self‑serve laundromat. With our expert support you’ll be operating a profitable business in no time,...
Choices Flooring
Be part of a new retail opportunity in New Zealand with one of Australasia’s most innovative flooring brands. At Choices Flooring, you’re not just...
CrestClean
Looking for a simple business with low risk and high profit margins - where you can enjoy a great lifestyle? A CrestClean franchise ticks all the boxes!...
Westpac New Zealand
Westpac is New Zealand's most experienced bank in franchising and the only bank offering dedicated franchise specialist managers throughout the country....
Blackwell Trading Post
Blackwell Trading Post offers a curated selection of premium gins. Best suited to a mature Kiwi operator with energy, enthusiasm, excellent people and...


