In The News 
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
Toyota offers free cars to get small businesses moving 1st June 2020
2 June 2020 - To mobilise and support small businesses impacted by Covid-19, Toyota New Zealand will provide 100 businesses with a free SUV for 12 months
Franchisees upset at lockdown fees 26th May 2020
Owners of Green Acres lawnmowing franchises are upset to have been been asked to continue paying weekly royalty fees during the level 4 lockdown, according to a report in Stuff. While some other franchises suspended fees and other levies altogether while franchisees were unable to work, a Green Acres spokeswoman said the company had frozen fees which franchisees could pay back later.
Economic outlook and the impact on franchising 14th May 2020
May 2020 - Westpac’s latest Quarterly Economic Overview suggests that Covid-19 will cast a shadow over the economy for years, but that recovery will be faster than after the GFC. What impact will this have on franchising?
Facing redundancy? The pros and cons of buying a franchise 12th May 2020
April 2020 - Redundancy could turn out to be the best thing that ever happened to you, but don't rush into anything. Here are some tips on what to look for if you're considering buying your own business
From stress to success 12th May 2020
V.I.P. provides the tools, training and support to help you start a new life
Helping franchisees #10 – The rise of online shopping 12th May 2020
In the last of our lockdown case studies, we talk to InXpress about the impact of Covid-19, and the impact of the growth of online shopping
Helping franchisees #9 – taking social responsibility 11th May 2020
With all sorts of businesses facing unprecedented times, how are big franchisors helping both their franchisees and the wider community? We talk to one of New Zealand’s best-known brands (and least-known franchisors), Anchor
Survey shows need for action on commercial leases; is NZ First blocking Government approach?? 10th May 2020
10 May 2020 – Updated: NZ First said to be blocking Government action on commercial rents; new survey reveals extent of problem
Download a free contact tracing register 1st May 2020
As the nation’s businesses get back to work this week under Alert Level 3, CrestClean has produced some handy free resources to help them keep compliant. The franchise has taken the Government’s guidelines to design a Contact Tracing Register plus some useful signage. They are the basic signage requirements to equip premises to trade under Alert Level 3. You can print these highly visible aids to assist your organisation’s compliance; they are available to download here from the CrestClean website.
Redundancy – time to be your own boss? 29th April 2020
April 2020 – Facing redundancy? Simon Lord discusses the pros and cons of buying a franchise
PM promises action on commercial rents 29th April 2020
29 April 2020 – Jacinda Ardern has responded to requests from business and industry groups for Government action to bring landlords to the negotiating table
Helping franchisees through Covid-19 - case studies and further information 24th April 2020
How does being part of a franchise help when the unthinkable happens and the whole country goes into lockdown? We’ve been finding out what franchisors are doing for their franchisees.
Associations present united front on commercial leases 23rd April 2020
24 April 2020 – Business and industry groups including the Franchise Association are requesting Government action to bring landlords to the negotiating table
Helping franchisees #7 – Preparing to Re-open 22nd April 2020
How are franchisors helping their franchisees prepare to re-open once we move down from Level 4? BurgerFuel has been working on it from the start of lockdown – we asked them to tell us how they’ve approached a situation no-one ever expected
Relief for businesses - updated 22nd April 2020
Helping franchisees #6 – Home & Building Services 20th April 2020
When you’re running a small business, sometimes it’s hard to find the time to plan ahead. One of the benefits of being a franchisee can be that your franchisor has done that for you. We talk to Tony Burnette of Exceed about being prepared and how it’s paid off
Helping franchisees #5 – the Banker’s View 17th April 2020
Westpac’s Franchise Team has been working with franchisors and franchisees throughout New Zealand to find practical solutions to the cashflow crisis caused by Covid-19
Small business support inadequate, says FANZ 17th April 2020
17 April 2020 - FANZ demands consultation, more action to support small business
Helping franchisees #4 – Business & Commercial 16th April 2020
How are franchisors helping their franchisees during the current Covid-19 crisis? In the fourth article in this series, we talk to Pukeko Rental Managers
Helping franchisees #3 – Childcare & Education 15th April 2020
In the third of our lockdown series looking at what franchisors are doing to help their franchisees, we talk to pre-school educators Just Kidz
Burger King in receivership 14th April 2020
The Burger King master franchisee in New Zealand has been placed into receivership, but is seeking support from suppliers and landlords and working on a plan to re-open after the lockdown. Burger King has around 80 restaurants which have been closed during lockdown. All stores are company-owned rather than being operated by individual franchisees. The Franchise Association has been calling on Government to take action to encourage landlords to play their part in helping businesses survive.
Helping franchisees #2 – Cafés & Restaurants 13th April 2020
In this second case study in our new series looking at how franchisors are helping their franchisees during lockdown, we talk to The Coffee Club
Helping franchisees #1 – Home Services 9th April 2020
A special series looking at how franchisors are helping their franchisees during lockdown. In this first case study, we talk to V.I.P. Home Services
Listen to RNZ interview about franchising 6th April 2020
Franchising employs more than 120 thousand people, and 74,000 are permanent full time workers. RNZ's Kathryn Ryan talks about the situation of franchisors and franchisees with Callum Floyd, chair of the Franchise Association, Brad Jacobs, who owns and operates The Coffee Club in New Zealand, and franchisee Joe Southon, who owns and operates two Carpet Court stores and the Floor Store in Thorndon. Listen here.
BBC says NZ in top 5 countries to bounce back 6th April 2020
FANZ lobbies Government re. landlords' attitudes 3rd April 2020
3 April 2020 -The Franchise Association has issued an open letter to Government regarding the attitudes taken by some landlords, especially mall owners, towards leases and rents during the current crisis. The letter urges the Government to grant some form of rent relief to all tenants of commercial leases, noting that the Australian Government has already taken action. Read the letter here.
"We are receiving regular reports that even the largest and highest profile shopping centre landlords, who have charged very high rent for years, are threatening legal action for unpaid rent as soon as the next day after the rent was due.
Many franchisees have no ability to generate income while their premises are inaccessible. They are simply unable to afford to pay. In a very short period of time, this will lead to mass cancellations of leases and loss of businesses as well as other assets owned personally by franchisees, such as the family home.
In some cases, the franchisor holds all head leases and then sub-leases to franchises. The refusal of landlords to negotiate will also lead to the closure of some key New Zealand franchised brands with an enormous cost to the thousands of families who rely on their franchisees’ businesses for employment.
We acknowledge that landlords are also victims of this crisis and many have responded well to the call to share loss between themselves and their tenants. However, we are gravely concerned about the behaviour of some who have generated healthy profits for years and whose attitude to this situation affects a very wide range and number of tenant businesses."
Do what you love 2nd April 2020
Relief for businesses - summary 2nd April 2020
22 April 2020 - Michael Bright of Gaze Burt provides an updated summary with links of where to get up-to-date and accurate information about the relief available for businesses
Wage Subsidy - free employer's guide from Franchise Accountants 30th March 2020
In response to overwhelming demand for information and support on the Wage Subsidy, Franchise Accountants has prepared a resource which outlines how employers treat the Wage Subsidy and related matters. This guide answers a lot of questions and covers off some practical examples and tips. Download your copy of the guide here.
Latest economic update 19th March 2020
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