In The News 
US invites kiwi franchisors to find out more
15th October 2013
Top speakers at Franchise Marketing Forum
15th October 2013
McDonalds training to count towards Massey degree
9th October 2013
Achieving an in-house qualification at McDonald's will gain staff members credits towards a bachelors degree in business studies or a diploma or certificate in business studies at from Massey University. Restaurant managers will be able to have work experience cross-credited for up to four credits - just over 15 per cent of a bachelors degree. That would cut the time it would take to complete a degree by around two years if studying part-time.
McDonald's has previously been recognised by the qualifications authorities both in New Zealand and other countries. Here's an article from 2009 about a UK scheme, and here's a fascinating story from the BBC entitled Everything I Needed to Know I Learned In McDonald's.
The head of Massey's College of Business, Professor Ted Zorn, said it was the first such agreement between the university and a business.
'We have gone in to McDonald's and looked at what they are doing, and created a blanket policy for staff who have completed their inhouse training. We assessed the content [of the inhouse training], and found there was a pretty good fit with some of our first-year papers.'
McDonald's has also introduced a scholarship programme to help staff cover tuition fees.
Beauty franchise group rebrands
8th October 2013
Georgie Pie to go national
8th October 2013
Australian town tells McDonald's to burger off
8th October 2013
As Grey Lynn residents campaign against the opening of a Bunnings, an Australian township has taken its fight to stop a McDonald's franchisee opening in their town to new levels. Although the local council in Tecoma rejected the original proposal by a vote of 8-0, the decision was overturned on appeal to a higher tribunal. Protestors have placed 200 gnomes (a symbol of the town) on the steps of McDonald's headquarters in Melbourne and taken out an advert in the Chicago Tribune.
Fastway Couriers unites to celebrate 30 years
26th September 2013
Global report says NZ businesses enjoy ease of access to loans
6th September 2013
While franchisors say funding for new franchisees is still a concern, the World Economic Forum has said New Zealand ranks nineth in the world for ease of access to loans and its financial markets are the fourth best in the world. Franchise bankers in New Zealand have always maintained that they have funds to lend as long as the franchise model is sound. The report reflects that, saying. 'A thorough and proper assessment of risk is therefore a key ingredient of a sound financial market.'
Phil O'Reilly, chief executive of Business NZ, said it was unsurprising the country had scored so well considering how well its banks stood up through the Global Financial Crisis.
'Our banks were not engaging in the types of activity that caused other banks to crash,' he said.
'In quite a few countries in the world, there'd be a significant proportion of the business community struggling now to get the right loans at the right time.'
O'Reilly said New Zealand's business community was fairly upbeat compared to others.
Why do some franchise systems survive when others fail?
4th September 2013
Howard Johnsons used to be one of the best-known brands in America, with almost 1,000 locations and bigger sales than McDonald's, Burger King and KFC combined! It was so ubiquitous, Mel Brooks populated an entire town with Johnsons in Blazing Saddles. Today, there are just two outlets left. This fascinating article looks at the reasons why one food giant failed while others went on growing.
In a talk about why Howard Johnson’s Restaurants failed, advertising executive Lou Carbone spoke of working for the franchise system late in its lifecycle, when discussions focused on “taking a quarter of an inch off a straw” or “switching from four-ply napkins to two-ply” to save money for the system. “It was all about value extraction,” he said. “No one was thinking about value creation for the customer. No one understood what these clues and signals meant.” Customers do understand, however, and when quality disappears from the system, customers will disappear as well.
Former pizza delivery driver becomes Domino's New Zealand GM
30th August 2013
Review could raise franchise regulation spectre again
29th August 2013
BurgerFuel opens 10th store in UAE
29th August 2013
Maiden loss for new Mad Butcher owner a one-off
29th August 2013
Veritas Investments, the listed company which took The Mad Butcher public earlier this year, has reported a maiden loss of $847,341 thanks to a one-off adjustment, The company says that earnings were in line with its prospectus forecast. Cjairman Mark Darrow said that The Mad Butcher retains a 'strong and unique' position in the market and that further complementary acquisitions were possible. It is understood that plans to franchise Yogg, the frozen yoghurt brand launched last year, have been put on hold.
Earnings before interest, tax, depreciation and amortisation (EBITDA) of $5.9 million were in line with its March prospectus forecast of $5.87m.
The bottom line net loss of $847,341 was affected by a $4.8m non-cash accounting transaction relating to the reverse acquisition.
Chairman Mark Darrow said that figure was higher than the $3.7m Veritas forecast because the company's share price closed higher than expected on issue day.
NZ economy up, payment times down
27th August 2013
New CEO as Fastway seeks to cash in on NZ Post woes
27th August 2013
Pizza Hut opens first new store for six years
23rd August 2013
Fastway recognises highway hero
21st August 2013
Housing charity to benefit from franchise’s working bee
20th August 2013
The parent company of Bayleys real estate has bought a majority shareholding in 10 lower North Island franchises operating under the Coast to Coast brand..
Bayleys managing director Mike Bayley said the strategy was to increase the company's presence in the region It would also introduce property management and valuation services.
The latest move follows on the heels of the recent buyout of Rohan Hill's shareholding in Bayleys Wellington.
US franchise index hits post-recession high
15th August 2013
The International Franchise Association (the US equivalent of FANZ) has released a report suggesting that franchise business activity in the USA is at its highest level since November 2007. A separate survey reported that the US franchise sector added 12,300 new jobs in July. The IFA says the industry is continuing on a 'slow but steady growth path' after its Franchise Business Index increased by 0.3 percent in July. New Zealand's own Franchising Confidence Index is also showing positive sentiment.
The July increase in the FBI was driven by gains in both employment and sales of franchise-intensive industries, and improvements in small business confidence.
'Franchise businesses continue to create jobs and demonstrate that the franchise business model remains the best and most proven vehicle to quickly grow and scale a small business,' said IFA President & CEO Steve Caldeira. 'While the record high FBI underscores the inherent strength of the franchise industry, concerns remain, particularly the rate of growth in new jobs.'
Columbus launches fresh menu with Healthy Food Guide magazine
14th August 2013
Marketing - we're not as digital as we think
9th August 2013
An article by Simon Lendrum of ad agency JWT warns marketers about focussing too much on the small goup of hard-core digital users and differentiates between what you can achieve online and offline. The comment below is worth reading, too - the one that ends, 'Of course, tracing the link between an ad in a magazine and a visit to a website is tenuous (read hard) and so often is ignored.'
A quick glance at the Hard Core Digital segment would get the digerati very excited. Here’s a group that watches no traditional television, consumes all its news, and the majority of its music, online, and even does the majority of shopping online. And there’s no doubt it is a growing group. It’s just growing from a very small base.
And here’s the rub: much of the digital marketing activity that we produce as an industry appears to be aimed towards this group, or assume that this group is more significant than it really is.
Positive outlook for NZ franchisors, franchisees
7th August 2013
Tips on buying a mobile franchise
2nd August 2013
Esquires new owner posts profit, explains plans
1st August 2013
Cooks Food Group, the company taking the overseas Esquires Coffee Houses franchise on to the NZAX through a backdoor listing, has posted a profit by writing off debt and receiving a refund of interest paid on loans. Read the Annual Report here. The report has a summary of Cooks’ transformational share purchase agreement with the Deeks Brother's Franchise Development Limited that sets out the way forward for the former shell company. The originally announcement in June 2013 has been followed by additional international acquisitions of franchises and master franchises.
NZX-listed Cooks Food Group has been able to post a profit by writing off debt and receiving a refund of interest paid on loans, its full-year financial results show.
The company's net profit after tax for the year ending March 31 was $1.16 million, up from a $592,000 loss in 2012.
Cooks chairman Keith Jackson said the company was on the pathway to transforming itself into an integrated global coffee chain through the purchase of the Esquires Coffee franchise, which was announced last month.
Herald beats up Mike Pero over Hitler video
30th July 2013
The New Zealand Herald is claiming a parody created for the Mike Pero Real Estate franchise created 'criticism and disgust' when it was accidentally made available for public viewing on You Tube. The parody, which uses a much-copied clip from the movie Downfall to depict Adolf Hitler as a rival real estate agent upset about Mike Pero's success rate in a new market, was taken down almost immediately. However, the Herald includes excerpts from the script which are, to be honest, quite funny.
It appears as if the Herald reporter has gone out looking for people to be offended without great success: one lawyer said he had a real estate agency client of Jewish heritage who was 'not laughing' while the only person who stated they were 'disgusted' was the chief executive of rival agency Harcourts. Mike Pero described the situation as 'awkward.'
In the parody, one of Hitler's men tells him: "We're losing market share big time." This territory for example, we've lost two agents and now we've lost 40 per cent market share. He's got agents all round the place. Our sales are down 65 per cent," the captions say, showing Hitler's men pointing to a world map as the leader looks on speechless.
"All these areas are being bought. My leader, they are paying money to become franchise owners."
Australian franchise code to change 'as soon as possible'
26th July 2013
The Australian Government has accepted most of the 18 changes to the Franchising Code of Conduct recommended in a Review earlier this year. The changes will see the ACCC gain greater enforcement powers, including the ability to issue infringement notices and financial penalties of up to $50,000 for breaches of the Code. The Government declined to allow courts to order franchisors to provide royalty-free periods or to make top-up contributions to marketing funds. Jason Gehrke provides a helpful summary.
Changes to the disclosure provisions of the Code that have been accepted include the removal of Annexure 2 disclosure, reduced disclosure for single-grant foreign franchisors, disclosure of online sales, and the provision of a risk statement to all potential franchisees.
Restraints of trade against former franchisees will become unenforceable in situations where franchisees who are not in breach of their agreements and are willing to renew are not renewed by their franchisor.
FANZ seeks exemption for members from employment law Part 6a
25th July 2013
July 2013 – The Franchise Association has proposed that its members should be granted automatic exemption from a change to Part 6a of the Employment Contracts Act
Kiwis prove world record appetite for burgers - again
23rd July 2013
Why franchising suits the building and maintenance business
22nd July 2013
Ex-franchisee takes top role at Franchise Association
18th July 2013
The Georgie Pie trial is being extended south of Hamilton after a 'fantastic' response from Kiwis. McDonald's overseas management is taking a keen interest too
Columbus franchisee uses UFB to boost business
15th July 2013
Columbus Coffee franchisee Danny Wrigley says that offering free Ultra Fast Broadband in his Albany cafe has helped him build his business and keep customers coming even when the weather is good.
Danny reckons he has between 25 and 40 customers like Stephen using his café as a temporary office on a regular basis. They might be business people based in South Auckland, but with customers on the North Shore and so needing a work base one day a week. Or they might work from home but not want to have to meet clients among the washing-up chaos and the kids.
“It’s given us a good source of steady revenue. These are people you‘d expect to see at least once a week. They probably have one coffee per person per meeting and if there are two or three tables doing that, that’s 10-15 drinks and the occasional muffin or even lunch.”
Herald defines Auckland CBD as 'Central Burger District'
13th July 2013
The New Zealand Herald has suggested that fast food outlets are taking over what used to be Auckland's main shopping street as retailers are forced out by high rents and inadequate parking. It's the latest in a series of articles the Herald had run on the food sector, including one that called Otara 'fast food alley'.
"The number of fast-food outlets on Queen St has grown to at least 42, which critics say is not helping Kiwis' growing waistline or an $80 million facelift and the efforts of city planners to make it New Zealand's premier retail and business district.
Ten new takeaways have popped up between Britomart and Aotea Square since July 2011 when the Herald last counted.
A new KFC, in a yet-to-be-decided location, will bring the number to at least 43. That's an increase of 30 per cent."
How to become a high-achieving franchisee
10th July 2013
Glenice Riley offers advice on how to make the most of any franchise opportunity
Telcoinabox NZ business changes hands
8th July 2013
New FANZ Board elected
7th July 2013
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