In The News

Inland Revenue issues urgent email scam warning 25th August 2017

25 August 2017 - Inland Revenue is warning people about a particularly sophisticated email tax scam circulating today.

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Joint employer liability proposed in Australia 25th August 2017

A Labor senator in Australia is proposing amendments to make the Protecting Vulnerable Workers Bill even tougher.

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Bags of success for charity handbags 25th August 2017


Economy throttling back but growth to continue 15th August 2017

15 August 2017 – The latest Westpac Economic Overview finds rising global interest rates are balanced by rising commodity prices for New Zealand products. Growth will continue but slow by the end of the decade.

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FAB Group plans UK launch 12th August 2017


Go barking mad for cupcakes at The Coffee Club 12th August 2017


Tauranga Event - Making a Kiwi franchise great again 9th August 2017

The next Franchise Information Evening in Tauranga features a presentation from one of New Zealand's most experienced franchisors. The event is a must for anyone planning to franchise their business or buy a franchise themselves.

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New FANZ board announced 8th August 2017

August 2017 - Two new appointees bring massive experience to the board of the Franchise Association of New Zealand

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Stonewood Homes wins at House of the Year awards 2nd August 2017


McDonald's extends Uber delivery 26th July 2017

18 July 2017: updated - McDonald's has teamed up with UberEats to deliver Big Macs to your doorstep. It's now available from ten Auckland outlets and overseas experience suggests the service will grow.

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New survey confirms NZ is the most franchised country in the world 24th July 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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Swap a handbag for a facial at Caci 21st July 2017


Nosh up for sale again 21st July 2017

The receivers of the troubled Nosh Group and sister company Mt Eden Food Company are looking for offers for the troubled group by 28th July. The companies were orifinally sold by Veritas Investments for $4 million in February, following an ultimatum from bankers ANZ, but the unidentified consortium behind new owners Gosh Holdings failed to turn the company around.

Nosh Group operates five Auckland stores: Glen Innes, Green Lane, Ponsonby, Pakuranga and Matakana.

Mt Eden Food Co operates the Mt Eden store. Nosh stores in Kerikeri and Mt Maunganui are independent franchises.

Mt Eden recorded the highest turnover in the year to June 2016, taking in more than $6.63 million.

But most of the stores were recording losses on a regular basis, sometimes in excess of $100,000 a month.

Between July 2016 and April 2017, the Nosh group had income of $13.3 million but after expenses, suffered a loss of $3.75 million.

All of the Nosh stores are in leased premises, so a buyer would have to renegotiate those leases if they wanted to continue.


US franchises urged to avoid Australia, consider NZ instead - UPDATED 20th July 2017

July 2017 - Suggestions that the International Franchise Association has advised members to avoid expanding into Australia until legislative uncertainties are resolved have been denied

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Workshops - stay on the right side of employment law 19th July 2017


McDonald's launches delivery service in NZ 19th July 2017

18 July 2017: updated - McDonald's has teamed up with UberEats to deliver Big Macs to your doorstep. It's now available from ten Auckland outlets and overseas experience suggests the service will grow.

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Nosh in receivership; franchisees trade on 17th July 2017

Upmarket grocery chain Nosh has been placed in receivership, but two regional franchisees are trading on. The long-term impact of their franchisor's failure remains to be seen - a former Nosh outlet in Auckland's Mairangi Bay was converted into a New World under the same franchisee, but opportunities for such conversions are very site-specific.

A Nosh in Kerikeri and one Mt Maunganui trade as independently operated stores and are unaffected by the receivership.

Kerikeri owner David Whyman said he would still prefer to stay with the Nosh brand but hoped new owners would lead it in a better direction.

Last month, Nosh closed its Auckland stores ahead of a planned relaunch on June 26.

When the time came, different notices said the relaunch had been delayed until July 8.

The relaunch didn't happen on that day either.

No sign of activity - or stock - could be seen through the mostly covered windows.


Another big brand franchisee alleged to have underpaid immigrant staff 12th July 2017

12 July 2017 - An Australian Subway franchisee is facing court action over alleged underpayment of an immigrant worker. It's the latest in a series of cases to have hit some of the biggest names in franchising. Meanwhile, Foodco, the owner of the Muffin Break and Jamaica Blue brands, is working with Australia's Fair Work Ombudsman to educate its franchisees.

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NZ franchisor and 5 stores placed in receivership 7th July 2017

New Zealand company Hardy's, which sells health and weight loss supplements, is facing challenges after the franchisor company and five company-owned store were placed in receivership earlier this week. Six franchisee-owned stores are trading as usual. The receivers are now seeking a buyer for the company, which was founded in 1986.

Companies Office records show that Andrew Grenfell and Kare Johnstone were appointed as receivers of Hardy's earlier this week.

Grenfell told the Herald that the five company-run stores affected by the receivership include those in Auckland's Sylvia Park, St Lukes, and Northwest as well as two in Bethlehem and Taupo.

The receivers are planning on running these stores while they look for a buyer for both them and the master franchisor.

Grenfell said he was not in a position to give details on the events leading up to the receivership. He said that the company-run stores and the master franchisor employed around 20 staff.


Tourette’s campaign proves Kiwis really do #GiveATic 5th July 2017

5 July 2017 – Hell has raised nearly $50,000 to ensure that more families living with Tourette’s can attend “life-changing” Camp Twitch this year

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Strong outlook for franchising despite staffing shortage 5th July 2017


Is this the end for Nosh? 30th June 2017

30 June 2017 - With its company-owned stores closed, at least one franchise re-branded, suppliers and staff reportedly unpaid and the company's mystery owners apparently uncontactable, the future looks bleak for the former star upmarket grocery.

Sydney-based investor, Andrew Guy Phillips, bought the unprofitable chain via the company Gosh Holding for $4m saying he had the backing of a number of wealthy Kiwis.

Only one of these backers was revealed through changes to the Companies Office. He was Jonathan Denize, an Auckland man who has been declared bankrupt twice.

Denize did not respond to attempts to contact him this week.

"People in the industry shook their heads when Nosh was sold," said retail analyst Chris Wilkinson. "We all tried to work out who these buyers were."

Phillips was positive at the beginning of his purchase, and agreed to talk to the Herald about exciting plans for the franchise. This never came about and since the stores shut, he has not responded to calls or emails.

A number of employees and creditors of the business said this week that they were waiting for payment from Nosh.


Franchise Council under fire for lobbying against joint employer bill 30th June 2017

A Fairfax Media report has strongly criticised the Australian government for delaying a vote on its Protecting Vulnerable Workers Bill and suggested that it is the result of lobbying by the Franchise Council of Australia. The report, in the Sydney Morning Herald, specifically identifies as members of the FCA three companies whose franchisees have been accused of underpaying workers following a joint Fairfax/Four Corners investigation.

The new laws would hold franchisors responsible for a franchisee's violations in circumstances where it had significant control or influence over them, knew or should have known about underpayments, or failed to take reasonable steps to prevent the violations.

They would also impose much stiffer penalties for breaches, with companies facing possible $540,000 fines.

But the Franchise Council is targeting government and crossbench MPs as it seeks to neuter the bill, arguing it would have unintended consequences that would hurt employment and small business.


Small Business Accounting<br>20 YEARS in the making 27th June 2017


BRAND NEW! Franchise Association has a fresh look 26th June 2017


McDonald’s traymats come to life in new AR promo 22nd June 2017

22 June 2016 - McDonald’s is taking traditional tray mats to a new level with the launch of an interactive augmented reality experience as part of their new Despicable Me 3 movie tie-in

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Multi-Unit Summit to help franchisees, franchisors grow 22nd June 2017


Hell keeps doors open for Tourette’s Association 22nd June 2017

22 June 2017 - Hell and the Tourette's Association have joined forces to help raise funds, awareness and political action

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After-4 Event this month - Making NZ franchises great again 16th June 2017


Brexit and write-down affect Esquires global owners 15th June 2017

NZAX-listed Cooks Global Foods, which owns the rights to the Esquires Coffee chain outside Australasia, had higher sales in the UK and Ireland in 2016, but lower revenue revenue thanks to post-Brexit currency fluctuations. The company has posted a larger net loss ahead of a restructuring of its Chinese operations.

Esquires in Australia and New Zealand is independently owned by RFG and operates here via master franchisee Cafe Coffee & Bakery Systems.

The company wrote down the value of its Chinese coffee store operations by $4 million ahead of its expected sale into a new joint venture in China, and wrote down the carrying value of the Progressive Processors supply business by $450,000 after it was sold. In exchange for its Chinese assets, which includes 26 stores, Cooks gets 30 percent of the company which will own the Esquires brand in China, Hong Kong, Macau and Taiwan.

Revenue from its operations in the UK and Irish markets grew in local currency terms but the gains were erased by falls in the pound and the euro following the Brexit vote last June, Jackson said. After conversions, sales from Britain decreased 13 percent to $1.5 million, compared to a 22 percent gain in local currency. The company now has 29 stores open in the UK, four more than a year earlier. Irish revenue rose 12.5 percent to $668,000, behind the 15 percent gain on a local currency basis.


Christchurch welcomes another New Yorker 15th June 2017


Brazilians take on The Body Shop 15th June 2017

The Body Shop, the ethical cosmetics franchise founded by Anita Roddick, has been sold by L'Oreal to a Brazilian make-up company. The Body Shop was founded in Brighton, England, in 1976 and went public in 1984. An early proponent of cause-related marketing, it was famed for its social and environmental campaigns which were sometimes controversial and required considerable buy-in from franchisees. The company was taken over by L'Oreal in 2006. Anita Roddick was made a Dame in 2003 and died in 2007.

All 28 outlets of The Body Shop in New Zealand are operated under the one owner, OLT Retail. The company does not sub-franchise in New Zealand.

RCG retail expert John Polkinghorne said: 'The Body Shop has been a real success story in New Zealand. They've had a long history here and consumers are aware of their strong ethical stance.'

'That should position them well for the future, since business ethics are a bigger issue today than they've ever been.'

'But all retail businesses need to innovate and refresh themselves constantly, The Body Shop is no exception. They need to make sure that they stay relevant and have the best offerings instore and online.'


No pizzas for no-go area in Rotorua 13th June 2017

A Domino's franchisee has been instructed by the police to stop deliveries to a Rotorua suburb because of safety concerns after its delivery vehicle was stolen in the area, although police have denied giving such advice. The local Hell Pizza franchisee has also said they have stopped delivering to certain customers in the Fordlands area.

Domino's said its Koutu store was working 'closely with the local police on this matter and will resume deliveries to that area following police advice.'

'The safety and security of our team members is of the utmost importance to Domino's and each team member is equipped with safety training,' the company said.

The Domino's spokeswoman said the stolen van was found a few days later.

'We can confirm instruction was given by police to the store manager to avoid the area until further notice for the safety of his staff. The store manager advised the owner and agreed to follow this advice.'

Rotorua police prevention manager Inspector Stu Nightingale said police were happy to provide crime prevention advice to businesses but would not tell a company not to go somewhere.


Franchisor strengthens global team ahead of float 9th June 2017


Another pizza chain for New Zealand? 7th June 2017

US pizza giant Papa Johns has announced that it is looking for local developers to establish 100 stores around New Zealand . The company has 5,000 outlets in 45 countries around the world compared to Pizza Hut's 15,000 (93 in NZ) and Domino's 12,000 (114 in NZ). The other major player in New Zealand is locally-owned Hell Pizza, which has 66 stores here. The fast-growing Sal's has 12 stores. A new brand from Kosova, Proper Pizza, is also due to enter the market later this year with the help of Stuart Deeks, who brought Esquires Coffee to New Zealand.

Papa Johns last looked at the New Zealand market in 2004, but its search for a master franchisee here was unsuccessful. At that time, Pizza Haven was a major player here, Pizza Hut had bought and close Eagle Boys and Domino's had yet to enter the market.

University of Canterbury associate professor Ekant Veer said Kiwis have a love of fast food, but a fourth pizza chain was risky business.

'One hundred stores – that's a lot. We've already got Pizza Hut, Domino's at that low end line. We've got Hell's pizza which takes that upper end, and then we've got the various restaurateurs.'

'I don't think New Zealanders are as closely aligned with pizzas to set up 100 stores,' Veer said.

Fast food was on of the biggest spending categories for most New Zealanders, he said.

'Cheap and nasty seems to be the way we like to eat out.'

'There's still space for good fast food but directly competing with other fast food places is probably not the way to do it,' Veer said.


Conference ALL SOLD OUT 31st May 2017


BurgerFuel opens in US 30th May 2017

BurgerFuel has achieved a long-held ambition by opening its first outlet in Indianapolis. The Ponsonby-based franchise originally planned to enter the US in a venture with Franchise Brands, a specialist investment company founded by Fred DeLuca and Peter Buck, owners of the Subway franchise. However, the plans fell through after the untimely death of Mr DeLuca. Read more about that deal and Kiwi franchises in the US market in this article from our archives.
The NZAX-listed BurgerFuel has over 30 franchised stores around New Zealand and a further 20 in the Middle East.

New Zealand fast food chain Burger Fuel aims to make America great again 'one Burger Fuel at a time.'

Burger Fuel opened its first US store today, in Indianapolis, and needs New Zealanders' help to sell Americans on the fast food chain. 

Kiwis are being encouraged to write a postcard or submit a short video to explain to Americans what BurgerFuel is all about.


2017 Franchise Awards - enter now 29th May 2017


Auckland's economic growth 'spectacular' 29th May 2017

A new report from Auckland Council's chief economist says Auckland's economic growth is 'spectacular' and an extra 60,000 jobs were added last year. The growth will be good news for those looking to set up businesses in the city, while the increasing congestion may encourage others to seek opportunities in other parts of the country.

'Auckland's growth is spectacular, certainly very strong, driven by population, tourist and the construction boom which is creating a lot of jobs,' said economist David Norman.

Auckland annual employment growth is running at 7.3 per cent, compared to 4.9 per cent for the rest of New Zealand.

Norman highlighted population growth, construction sector activity, demand for goods and services, tourism and the retail sector as the big economic growth drivers.

The 60,000 additional jobs were created in professional services (including law, accounting, finance, consultancy, architecture), construction (one in every eight jobs), hospitality (one in every eight jobs) and health care and social services (one in every 10), Norman told the Herald.


Massive response for franchise survey 28th May 2017


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