In The News 
New franchise event in Wellington 25th October 2020
Franchisors, franchisees, and anyone interested in learning more about franchising are all welcome to a franchise networking event being run in Wellington on Tuesday 1st August.
BurgerFuel quits USA 23rd October 2020
23 October 2020 - BurgerFuel is to close its single store in the USA, as part of a deal between the US master franchisee (and BurgerFuel's original founder) Chris Mason and the NZX-listed BurgerFuel Group. The decision brings to an end an adventure which started in 2014 when the US company Franchise Brands took a stake in the New Zealand chain. Franchise Brands was associated with Subway founder Fred DeLuca, but the partnership came to an end following DeLuca's death later that year.
Chain founder Chris Mason took over the rights to the BurgerFuel USA master franchise in 2018, after the board of New Zealand-based Burger Fuel Group decided it was not viable to expand into the US market.
At the time, Mason stepped down from Burger Fuel Group’s board but retained his roughly 11 per cent stake in the company.
But on Friday, Burger Fuel Group, which included the Shake Out and Winner Winner brands, advised the New Zealand stock market that it would acquire 1,538,461 shares from the Mason Family trust to settle debt relating to the US venture.
Starbucks owners buy Burger King NZ 20th October 2020
20 October 2020 - Tahua Partners, the company which owns the New Zealand master licence for Starbucks, has bought Anares, the trading company which operates Burger King in New Zealand. After reportedly seeking a buyer for some time, the parent group of companies which own Antares went into receivership on April 14, during the coronavirus lockdown but Antares continued to trade during the sale process. The price was not disclosed.
Burger King is the third largest quick service restaurant chain in New Zealand, with 78 restaurants nationwide employing 1800 staff. Neither Starbucks nor Burger King offers sub-franchises in this country, with all stores being company-owned.
After Antares’ parent company went into receivership, negotiations with landlords, creditors and the franchise holder, led to a compromise, allowing the restaurants to remain open while a buyer was found.
However, five Burger King restaurants – Lambton Quay, Courtenay Place in Wellington and Queen Street, Takapuna and West City in Auckland – would close as part of the deal.
Masterclass for franchisor development 12th October 2020
12 October 2020 – The popular Franchisor Excellence Masterclass is back at the end of the month, with online delivery making it easier than ever for Kiwi franchisors to attend
Eat Fighter: rivals co-operate in battle of the brands 6th October 2020
7 October 2020 – Two of New Zealand’s best-known food franchises are going head-to-head to win customers
Subway bread not bread, say Irish 1st October 2020
2 October 2020 - The rolls used in Subway's hot sandwiches contain too much sugar to be considered bread, according to Ireland's Supreme Court. An Irish franchisee of the US company had claimed it should not pay VAT on the rolls it uses in heated sandwiches, but the court ruled that because of the level of sugar in the rolls they cannot be taxed as bread, which is classed as a "staple product" with zero VAT.
Under Ireland's VAT Act of 1972, ingredients in bread such as sugar and fat should not exceed 2% of the weight of flour in the dough. The judges concluded that in Subway sandwiches the sugar content is around 10% of the flour in the dough for both white and wholegrain rolls.
Franchise Summit moved to November 28th September 2020
Assistance available for lockdown lease issues 28th September 2020
28 September 2020 - The Government has at last announced details of its arbitration and mediation funding package aimed at resolving ongoing disputes between commercial tenants and their landlords arising out of the Level 4 and 3 lockdowns. However, unlike the original proposal of 4 months ago, landlords can't be forced to participate.
Franchises' reputations grow as local brands deliver 25th September 2020
25 September 2020 - A new survey has shown that New Zealanders' appreciation of certain franchise brands grew during uncertain times.
NZ-owned cafe franchise applauds UK support for hospitality businesses 24th September 2020
The NZX-listed company which owns Esquires Coffee in the UK has praised the UK Government's 'generous' support packages. The UK government has reduced VAT for hospitality, slashing tax from 20 per cent to 5 per cent until January; introduced the Eat Out Help Out programme offering dining discounts in the month of August; and council rates have been abated for 12 months.
Cooks Global Foods has 58 outlets in England. It says the long, hard lockdown earlier this year had not had a material impact on its top line sales in the current financial year, and that Downing Street's work from home orders had provided a boost to the group's suburban neighbourhood outlets.
Franchise at the forefront of deep cleans 13th September 2020
Schools and workplaces are closing for deep cleans after potential Covid-19 contacts - but what does a 'deep clean' involve? Galvin Bartlett of the Paramount services franchise told RNZ's First Up programme.
Next webinar: Business after Redundancy 1st September 2020
15 October 2020 - Our webinars on buying a business after redundancy are proving popular. Get free, independent advice from leading experts on how to make a safe and sensible decision. Our next webinar is on the evening of Wednesday 28th October. To register, all you have to do is email editor@franchise.co.nz with your name and which area of the country you are from.
Our recent webinar on buying a business after redundancy was so well received we're running it again. Get free, independent advice from leading experts on how to make a safe and sensible decision with this special webinar session on the evening of Tuesday 15 September.
Restaurant Brands buys into California market 1st September 2020
New Zealand-listed Restaurant Brands has bought 69 KFC and Taco Bell stores in the United States to add to its overseas operations in Australia and Hawaii. Restaurant Brands is the master licensee for the KFC, Pizza Hut, Taco Bell and Carl's Jr. brands in New Zealand. The company was partly taken over by a Mexican-based investor last year.
First Retail Group managing director Chris Wilkinson said the company was well positioned to expand in the US.
'Once you are defined in one country, there is a significant amount of transferability to expand into others,' he said.
Fast food businesses have proven to be resilient during the Covid-19 crisis across the globe.
Franchisors help as cost of delivery bites into food margins 28th August 2020
28 August 2020 – Takeaway-only restrictions in Auckland have fuelled demand for delivery services again. What’s the impact on franchisees, and how have franchisors responded?
Building great franchise teams - NZ seminars 27th August 2020
Three seminars being held online and in person in October are designed to give franchisor teams the tools they need to help franchisees get the most out of their businesses.
Economic outlook not so gloomy 27th August 2020
27 August 2020 - Westpac’s Quarterly Economic Overview is more positive than might be expected. Here are some extracts, along with links to the full report
New Board for Franchise Association 19th August 2020
20 August 2020 – There are a number of new faces on the FANZ Board after the results of the elections were announced yesterday.
Just Cuts calls for rent support action 12th August 2020
Just Cuts is the latest franchise to suggest that commercial landlords in New Zealand have not been as supportive as in other countries. The Franchise Association and other business groups have regularly called for action to force landlords to negotiate on rents, saying that some very successful long-term businesses are facing bankruptcy owing to the actions of a few landlords who are not prepared to make allowances for cashflow damage caused by lockdown. Legislation was prepared, including a $40 million mediation fund, but failed to pass after New Zealand First withdrew its support.
Learning from lockdown: one franchisor's story 4th August 2020
4 August 2020 - Keeping things humming even during lockdown was a top priority for business owners, so Westpac asked Brad Jacobs of The Coffee Club to share the story of how they temporarily shut down 66 franchises and built an online presence in just one week.
Franchise education for young lawyers 4th August 2020
29 July 2020 – In a New Zealand first, AUT is offering an undergraduate level paper in franchise law
Franchisee ‘perhaps NZ’s worst employer?’ 4th August 2020
August 2020 - A recent news story about a Bottle-O franchisee has again demonstrated the risk to franchise brands of franchisees breaching their employment responsibilities to migrant workers
Free webinar: Business after Redundancy 31st July 2020
15 October 2020 - Our webinars on buying a business after redundancy are proving popular. Get free, independent advice from leading experts on how to make a safe and sensible decision. Our next webinar is on the evening of Wednesday 28th October. To register, all you have to do is email editor@franchise.co.nz with your name and which area of the country you are from.
National suggests unemployed should access KiwiSaver funds to start up businesses 29th July 2020
29 July 2020 – A National Party plan to allow unemployed workers to access their KiwiSaver retirement fund to start a business has been criticised by a KiwiSaver provider
'Simply not fair' - Franchise sector renews calls for action on rents 21st July 2020
The Franchise Association has renewed calls for action to force landlords to negotiate on rents, saying that some very successful long-term businesses are facing bankruptcy owing to the actions of a few landlords who are not prepared to make allowances for cashflow damage caused by lockdown. If well-supported franchisees are having such issues, how much harder must it be for independent business owners? Listen to this morning's RNZ interview with Kathryn Ryan of Nine to Noon featuring Robyn Pickerill of FANZ, Brad Jacobs of The Coffee Club and Bird on a Wire, and Stephen Mansfield of Quest Apartments.
Burger King US urges diet change for farting cows 17th July 2020
Burger King has released an advertisement encouraging US farmers to change cow diets in order to reduce greenhouse gas emissions. The controversial video ad features children in cowboy hats singing about the impact methane gas emitted due to cow flatulence has on global warming.
Burger King claims adding lemongrass to cow diets could ease digestion and dramatically reduce methane emissions, but farm leaders say the ad is 'condescending and hypocritical'. Some scientists also criticised Burger King's message and its focus on cow flatulence, with one saying that early all enteric methane from cattle is from belching. 'Suggesting otherwise turns this serious climate topic into a joke.' The advert has already been watched over 3 million times on YouTube.
Online forums address franchisor team roles 29th June 2020
June 2020 – New online forums offer a fresh approach to the professional development of franchisor teams
Private company invests in Caci franchisor 28th June 2020
29 June 2020 – Caci have announced a new partnership with the country’s leading private company investor
Franchise Summit launched for October 26th June 2020
November 2020 - The one-day Westpac Franchise Summit was a massive success
Speaking terms - buying and selling a franchise 25th June 2020
What happens to the franchise agreement when you buy or sell an existing franchise? Michael Bright provides a brief guide
Rent negotiation bill stalled again 24th June 2020
25 June 2020 – Franchisees could lose their businesses and staff their jobs after long-awaited rent relief legislation delayed again
Four Square franchisee is local business hero 15th June 2020
16 June 2020 - Four Square Waikanae Beach franchisee Quoc Tran has been named the National Winner of the Prospa Local Business Hero Awards. Tran has run the store for nine years, with wife Thuy Vu. Tran says it feels good to help the community in the same way others have helped him. That includes helping elderly people do their shop and carrying their groceries out to the car, and treating local kids to a free ice cream on their birthday.
Tran fled Vietnam in 1988, spending six years in refugee camps in Hong Kong and the Philippines before finally arriving in New Zealand in 1994. He told Stuff that he doesn’t dwell on it too much, but says it was 'a very hard life' and it has fired his determination to work hard and embrace all that being a Kiwi has to offer.
Licked - icy end for breakaway ice cream franchise 15th June 2020
16 June 2020 - Core Enterprises, the master franchisee for ice cream retailer Shake Shed, has gone into liquidation. The company was created when Chang Xi, the New Zealand master franchisee for Wendy's Supa Sundaes in New Zealand, decided to split from Wendy's owner GFRG following a change of supplier and persuaded his franchisees to follow him. In 2018, the High Court in Tauranga found that Xi and the franchisees had breached their franchise agreements with GFRG and Shake Shed was ordered to pay $5.5m to GFRG for the breach. Read more.
UK company prevents ex-franchisee copying system 11th June 2020
12 June 2020 - Water Babies International has obtained an interim injunction in Wellington against a former franchisee and her cousin who established a business with a similar name, systems, locations and schedule. It's the latest example of franchisors taking court action to protect their Intellectual Property, and a reminder to franchisees that they can't just change the name and carry on in the same business. We will look at other recent restraint of trade cases in the next issue of Franchise New Zealand magazine.
Rent action update: start negotiating now 9th June 2020
10 June 2020 - What do the Government's proposed measures to force commercial rent negotiation actually mean, and when can franchisees start to use them to bring landlords to the table?
Taco Bell to open second NZ store 9th June 2020
10 June 2020 - Taco Tuesday is about to get real for Auckland urbanites. Taco Bell will open their second New Zealand restaurant in the heart of the Auckland CBD at midday on Tuesday 16th June.
McDonald's axes Georgie Pie 8th June 2020
9 June 2020 - Seven years after McDonald's brought back Georgie Pie to widespread excitement, the company is taking them off the menu again due to lack of demand. 'We know there will be disappointed Georgie Pie fans out there, and this is not a decision we have taken lightly,' said Dave Howse, McDonald’s New Zealand’s managing director. Existing stock of the single flavour offered, Steak Mince 'N' Cheese Pies, will be run down over the next few weeks. They have already been withdrawn from some outlets.
'It's the brand that, for many people, defined a Kiwi childhood,' we wrote back in 2013, when the return of Georgie Pie made the front cover of Franchise New Zealand. A campaign to bring it back attracted over 57,000 likes on its Facebook page, and when McDonald's launched its initial trial, 'The hordes rushed in and we got absolutely slammed,' reported Mark Rush, who owned the Queen Street, Auckland, franchise. But, like the original Georgie Pie concept which lasted barely 20 years, it wasn't sustainable in the long term, even though the pies were sold through existing McDonald's restaurants rather than stand-alone stores. Tastes have moved on, and further 'Bring back Georgie Pie' campaigns seem unlikely to succeed. Read our original coverage of the return of Georgie Pie here.
Keep NZ safe - get official QR tracer code posters 8th June 2020
New Zealanders have taken a big hit to get on top of Covid-19, but now there are no live cases and we're returning to Level 1. It's up to businesses and people to play their part in staying on top of it, though, and contact tracing will be vital in the event of a new outbreak. Businesses should still display the official NZ Covid-19 Tracer QR code posters wherever customers or visitors enter the premises - get your posters here.
Understand what you're signing up for 6th June 2020
The story of a franchisee who feels let down by his franchisor over the terms of a work guarantee shows that you need to take advice and understand what you're signing up for when you buy a franchise. The lawnmowing franchisee says he expected a guaranteed income of $1000 a week, but had earned less than half that. The franchisor says it had offered him work opportunities in excess of an average $1345 per week which he had refused or not submitted quotes for. Susan Edmunds of Stuff talked to both parties, plus franchise experts.
Rent action: thanks for nothing 3rd June 2020
4 June 2020 - Proposed action on a deal to force commercial rent negotiations after months of inactivity is being condemned as 'too little, too late'
BurgerFuel and top chef launch new gourmet product 2nd June 2020
2 June 2020 - BurgerFuel has joined forces with Al Brown & Co. to create a limited edition burger with some New York deli flavour
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