In The News

KFC results reflect healthy eating disconnect, says researcher 17th April 2018

Strong results from Restaurant Brands announced yesterday reflect increased performance from its KFC business. This might seem surprising at a time when the focus for many restaurant chains is on healthy eating, but a researcher is suggesting that while New Zealanders are becoming more concerned about their food choices, this isn't always reflected in the choices they make at point of sale. While millennial consumers expect certain standards of brands in terms of ethical practices and animal rights, their shopping decisions don't always match up.

'When we looked at shopping logs, haul videos and weekly transactional spend, we saw a very different story play out,' wrote TRA research consultant Jeremy McDonnell in an article based on the study.

'What we saw was that millennials will often put aside their allegedly strongly held attitudes in order to save a dollar, as opposed to voting with it.'

McDonnell argued there's a significant disconnect between the public narrative and what consumers actually do in stores.

'These everyday purchases involve a surprisingly low level of consciousness, which contradicts the current cultural narrative depicting millennials as conscientious, informed buyers. They may talk the talk, but fail to walk the walk,' he wrote.

The intoxicating aroma of KFC will likely continue to pull consumers out of their strong opinions and into the greasy embrace of fried chicken for some time, but consumer behaviour does have a tendency to change over time. And with governments across the world already dabbling in ways to fight the obesity epidemic with regulation, that change could potentially be forced in the future.

Read more at http://www.nzherald.co.nz/b...


Franchisees are not employees, confirms US Court 13th April 2018

A court in California has dismissed a class action by four franchisees of 7-Eleven which claimed that, because of the control the franchise exercises, they had been misclassified as independent contractors and were entitled to damages under both the Fair Labor Standards Act (FLSA) and the California Labor Code. including overtime compensation and expenses incurred in operating their stores such as payroll costs, maintenance, cleaning and uniforms. The lawsuit purported to have been brought on behalf of all of the over 1,500 7-Eleven franchise locations operating in California. The Court found that that 7-Eleven's alleged controls did 'not exceed what is necessary to protect 7-Eleven's trademark, trade name, and good will.'


The case will be of considerable interest given recent law changes in Australia which make franchisors responsible for franchisees' employment breaches, thereby blurring the long-established line between franchisor and franchisee.

Quoting extensively from Patterson v. Domino's Pizza, LLC, 60 Cal. 4th 474 (2014), the court observed that franchisees acquire a business plan that the franchisor "has created for all of its stores," and that the plan "requires the franchisee to follow a system of standards and procedures." Haitayan, 2018 WL 1626248, at *2 (quoting Patterson, 60 Cal. 4th at 489). The court also noted that the goal in franchising, "which benefits both parties to the contract, is to build and keep customer trust by ensuring consistency and uniformity in the quality of goods and services, the dress of franchise employees, and the design of the store themselves." Id. (quoting Patterson, 60 Cal. 4th at 490).

Read more at https://www.dlapiper.com/en...


Portermark quality recognised 12th April 2018

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BP operator penalised for breaching employment law 12th April 2018

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Esquires franchisees open in Pakistan and Jordan 27th March 2018

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New inquiry for Australian franchise sector 26th March 2018

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Criminalising cartels – how will it affect franchising? 27th February 2018

23 February ­– New legislation amending anti-cartels legislation would mean franchises need to be more careful than ever to ensure proper compliance

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Employment clampdown - penalties grow 26th February 2018

26 February - Franchisors advised to ensure franchisees compliant as Labour Inspectorate investigations continue

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Seminars improving performance for franchises and franchisees 25th February 2018

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Big start to year for sKids and kids 21st February 2018

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REWRITING HISTORY – and what’s to come for our economy? 20th February 2018

20 February 2018 - The latest Quarterly Economic Overview from Westpac deals with ‘lies, damned lies and statistics’ after Statistics NZ revised its estimates of GDP going back several years. But what's next?

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Dream Doors launches US expansion 14th February 2018

14 February 2018 – Dream Doors has appointed its first US master franchisee and an advisory board with serious credentials

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Foodstuffs to trial artificial intelligence shopping 14th February 2018

14 February 2018 – Shoppers at a suburban Four Square franchise will be the first in the world to trial new artificial intelligence technology that brings the checkout to the trolley

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Investing in a franchise from the USA - new seminar 11th February 2018

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FAB Group appoints first UK General Manager for Skinsmiths 8th February 2018

8 February 2018 – FAB Group has announced the appointment of a UK General Manager to lead the company’s global brand, Skinsmiths, in the UK.

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Genghis The Accountant 1st February 2018

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Business confidence down but franchising more positive 1st February 2018

31 January 2018 - Concerns about business confidence are reflected in the latest Franchising Confidence Index survey, but what's really happening?

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Swings and roundabouts in employment law changes 1st February 2018

31 January 2018 – Changes to employment law mean franchisors and franchisees need to be prepared

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Record start to year for The Coffee Club 25th January 2018

26 January 2018 – The Coffee Club reported a 50 percent increase over its previous record sales week as the hospitality year got off to a storming start

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Video helps Kiwis learn how to buy a franchise 25th January 2018

24 January 2017 – A new YouTube video is aimed at New Zealanders uncertain about the process of buying a franchise

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Caci opens first new franchise for 2018 17th January 2018

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Belgian company to buy Laser franchises 12th January 2018

Belgium-based multinational vehicle glass repair business Belron has agreed to buy Australiasia's largest plumbing and electrical services franchise, Laser Group, for an undisclosed sum. Laser was founded in West Auckland by fellow electricians David Clemmett and Pete Bassett and started franchising in 1999, mostly by signing up existing electrical businesses. The company twice won the Westpac Supreme Franchise System of the Year title, in 2005 and 2006, and further expanded by developing Laser Plumbing on a similar platform. The company started franchising in Australia in 2004 and now has 239 franchisees across both countries. Pete Bassett died tragically in 2010.


Belron already owns the Smith&Smith glass business in New Zealand.

The international vehicle glass repair and replacement group, which is part of Belgium-listed D'Leteren, said it had made the acquisition through its subsidiaries O'Brien in Australia and Smith&Smith in New Zealand. The deal is subject to finalisation of a due diligence book checking exercise.

Laser Group, through its members, provides plumbing and electrical services to both business-to-customer and business-to-business customers throughout Australia and New Zealand.

Read more at http://www.nzherald.co.nz/b...


Mad Butcher returns to Leitch family 20th December 2017

Veritas Investments is to sell its Mad Butcher franchisor business to chief executive and former owner Michael Morton and his partner Julie Leitch - daughter of company founder Sir Peter Leitch - for $8 million. This is less than a quarter of what Mr Morton sold it to Veritas for in a reverse listing in 2013, when Veritas paid $40 million for the business - $20 million in cash and $20 million in Veritas shares. Since then, a number of stores have closed or been taken over by the company after experiencing difficult trading conditions and stiff competition from supermarkets. The sale is subject to the approval of Veritas shareholders, which will be sought at a special shareholders' meeting to be held in early 2018.

Veritas hired Bancorp Corporate Finance to manage a sale process for the meat franchisor business and attracted three bids. Morton declared his interest in October and was excluded from board discussions on the sale.

'The independent directors fully support the proposed Mad Butcher sale transaction and recommend that shareholders vote in favour of the resolution to be put to them for the proposed Mad Butcher sale transaction at the special shareholders meeting,' chair Tim Cook said.

Read the Veritas statement

Read more at http://www.nzherald.co.nz/b...


Semi-retired couple are NZ's top franchisees 19th December 2017

New Zealand’s top franchisees of 2017 are a semi-retired couple who believe in working smarter, not harder. They also prove that some of the best opportunities in business lie outside the big cities

New Zealand’s top franchisees are a semi-retired couple who believe in working smarter, not harder. They also prove that some of the best opportunities in business lie outside the big cities.

Read more at http://franchise.co.nz/arti...


Listed Australian franchise under fire 19th December 2017

19 December 2017 - A series of articles overseas has accused one of Australia’s largest franchisors of causing multiple franchisee failures through increased charges and a challenged business model.

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Follow the law on alternative holidays, says Labour Inspectorate 19th December 2017

19 December 2017 – Payroll calculations are continuing to catch companies out, and franchisees could be vulnerable

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New technology allows deliveries at the drop of a pin 13th December 2017

Domino’s Anywhere is a maps-based pin drop feature for mobile customers wanting picnic blanket pizza deliveries

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2017 survey confirms NZ is the most franchised country in the world 7th December 2017

New Zealand has one franchised unit for every 124 people. That’s just one of many surprising statistics from the Franchising New Zealand Survey 2017. Next survey results are due out in 2020.

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March visit from US franchisors 29th November 2017

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New chapter for NZ as economic policies become clearer 22nd November 2017

22 November 2017 – What impact will new government policies have on the economy, and what will this mean for franchising?

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Franchise Awards 2017 RESULTS <br>- CABIN FEVER 12th November 2017

11 November 2017 – There were double celebrations for Just Cabins after the extra room specialists took out both Supreme titles at the Westpac New Zealand Franchise Awards. The other big winners this year were franchisees from the regions.

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New Life Members recognised 11th November 2017

11 November 2017 – The Franchise Association has awarded Life Memberships to three people who have made considerable contributions to the growth of franchising in New Zealand

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Children win thousands for their schools in Christmas competition 3rd November 2017

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NZ Franchise Awards - who will win this year? 2nd November 2017

We look back at some of the winners and how the Awards have helped New Zealand become the most franchised country in the world

The Westpac New Zealand Franchise Awards take place next week, and everyone is keen to know who will be setting the standards this year. We look back at some of the past winners and how the Awards have helped New Zealand become the most franchised country in the world

While some franchise awards internationally seem to be based upon reputation rather than systems and results (even today, some countries call for entries a scant two weeks before the winners are announced rather than three months as is normal here), the movers behind the initial New Zealand Franchise Awards were keen to ensure that the New Zealand Awards had real relevance to franchisors and franchise buyers.

After establishing the concept, in 1997 the judging process was further developed using a new system based upon the Malcolm Baldrige international quality criteria and with the assistance of one of the few New Zealanders to have won such an award. The criteria measure entrants across six key areas: Leadership & Planning; Customers & Market Focus; Information & Analysis; People; Processes; Results. The Awards were further developed ten years later with the appointment of the Business Excellence Foundation to manage the Awards process - a link that continues to this day.

Read more at http://franchise.co.nz/arti...


Handling the media - free seminar for franchisors 2nd November 2017

2 November 2017 - Media expert Pete Burdon is presenting a full-day seminar in Auckland next week to show franchisors how to handle potential media threats and create positive media attention

‘The media can be your friend or your foe,’ says Pete Burdon. ‘If you are prepared, they can be your friend, even during a time where reputations are threatened. And let’s face it, that threat could be just around the corner.’

Pete is a former journalist and government press secretary, which puts him in the unique position of having worked on both sides of the news media fence. His sessions at the National Franchise Conference in 2017 were highly rated by delegates and opened the eyes of many to the value of media training. This seminar will go into the topic in far more detail - read more.

Read more at http://www.franchise.co.nz/...


NZ franchisor to pay nearly $200,000 for employment breaches 1st November 2017

1 November 2017 – Employment breaches in a series of connected Asian restaurants in Auckland, including the Gengy’s Mongolian BBQ Buffet franchise, have seen the owners face nearly $200,000 of costs.

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Tax cuts for small business to offset wage increases? 31st October 2017

31 October 2017 - Prime Minister Jacinda Ardern is looking at offering tax breaks for small businesses to ease the burden of incremental increases to the minimum wage rate over the next three years.

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Australian Franchise Awards <br>– 2017 Results 29th October 2017

11 October 2017 – Two names familiar to New Zealanders took out the top titles at this year’s MYOB FCA Excellence in Franchising Awards

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Franchisors cautious before government policies clarified 27th October 2017

Updated 27 October 2017 - Pre-election uncertainties caused a slow-down in business confidence which extended into the post-election period. How will the announcement of a Labour-led government affect that?

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Auckland franchisees repay $125,000 in missing wages 26th October 2017

26 October – The Franchise Association and the Labour Inspectorate are urging franchises to check their systems after faulty payroll practices caused some Caltex franchisees to underpay hundreds of staff

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