In The News 
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
Esquires opens first Kuwaiti coffee house
3rd July 2013
Starbucks on way out as owners prepare to sell?
2nd July 2013
Starbucks may be on its way out of New Zealand. Restaurant Brands is closing unprofitable stores and preparing to put the business on the market next year, but it says it would only sell the brand as a group. A potential buyer would have to be approved by Starbucks in Seattle, or could presumably drop the Starbucks name altogether and re-brand. Buying the chain would offer instant and rapid growth for other New Zealand cafe operators, many of whom have outperformed Starbucks in recent years.
New Zealand coffee culture is "very sophisticated", Restaurant Brands' chairman Ted van Arkel told the company's annual meeting of shareholders in Wellington on Friday. "As New Zealanders, we have matured in our coffee tastes. It is hard going to go up against the local competitors."
The Muzz Buzz franchisor has won an injunction against what it called ‘dishonest and deceptive copycats'
Hell takes the pizza out of competitor's online promo
28th June 2013
Hell Pizza has taken offence at a Google marketing campaign by competitors Pizza Hut which uses the Hell keyword to promote 'Don't go Hell Pizza'. As usual, though, Hell has taken an alternative approach to the traditional lawyer's rebuke with a witty open letter. It highlights the serious point we featured last month about the difficulty of protecting your brand on Google Adwords.
"I represent Hell Pizza, New Zealand's foremost purveyors of quality pizzas. I wish to draw your attention to, and demand the removal of, your Google ad that orders people to 'Don't Go Hell Pizza'. Crimes against grammar aside, this contravenes the Slagging Off Your Opponents in a Desperate Attempt to Gain Customers Act of 1993. Having once tried your product, I am not surprised to see such tasteless advertising tactics, but perhaps you should leave that to the professionals. If you're losing customers, I recommend you discover why by going to Hell and sampling their appropriately named pizza 'Envy'. If not, I suggest you go there anyway."
28 June 2013 - The first official measure of NZ’s regional economies provides pointers for franchises looking to expand around the country
Californian law 'gives a bullet to franchisees'
27th June 2013
June 2013 - As regulation of various kinds continues to be discussed in NZ, a new bill passed in the Californian Senate 'gives a bullet to franchisees,' says advocate.
Franchise accused of bullying tactics
26th June 2013
A franchise seeking to enforce restraint of trade clauses against a former franchisee is being accused of bullying tactics by a family friend of the former franchisee who has set up a similar business employing a former staff member. Cookright Kitchen Services has said the company will not address the issue in public. Restraints of trade are a hot issue at the moment, with an article by David Munn in the latest issue of Franchise New Zealand exploring the topic in detail.
In a solicitor's letter to Tily, Cookright claims she was working in association with the former franchisee and therefore breaking the terms of settlement between Cookright and the former franchisee.
The terms of settlement say the High Court has made an order restraining the former franchisee from operating within Southland, Invercargill or Central Otago, or 100 kilometres from those regions until December 31, 2015.
The letter says Tily was using the same premises, employees and vehicle as the former franchisee, with a similar name which had been used by the former franchisee for another business.
5 candidates vie for places on FANZ board
21st June 2013
Delete the evidence, solicitor tells franchisee
19th June 2013
Fastway delivers mountains of change for kids
13th June 2013
Healthy profit rise for BurgerFuel
13th June 2013
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