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In The News

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.

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

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?

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

RFG takes back control of Gloria Jean's NZ 19th October 2017

Retail Food Group has taken back control of Gloria Jean's Coffee in New Zealand after master franchisee Boost Group was put into liquidation by shareholder Eric Chase. Mr Chase has alleged 'numerous discrepancies' in the way the finances of the company had been represented by a previous owner, a company with links to politician and former Auckland mayor John Banks.

There are some 12 Gloria Jean's cafes in New Zealand, which had operated under the umbrella of Auckland-based Boost Group. In September, Boost was put into receivership by GJ New Zealand Holdings, which had provided vendor finance to Boost when it sold it the NZ master franchise. Boost was subsequently put into liquidation by shareholder Eric Chase, Companies Office records show.

Retail Food Group (RFG) "owns the global rights to Gloria Jean's so we still own and operate the brand even if Boost is in liquidation," a company spokeswoman said. "All our partnerships are working as usual" and RFG is currently seeking a new master franchise owner. The Gold Coast-based company has hired someone to run day-to-day operations in New Zealand, she said.

Veritas fined for non-disclosure of Nosh plan 19th October 2017

Veritas Investments has been publicly censured and fined $55,000 plus costs by the NZ Markets Disciplinary Tribunal for failing to immediately disclose to the market that it had agreed to sell or close its Nosh business as a condition of continued support from its bank.

NZX said Veritas has accepted its view that it breached disclosure rules by failing to immediately disclose material information to the market. The regulator said it took into account that Veritas had taken legal advice and considered its obligations under the continuous disclosure rules before electing to withhold the undertakings.

"The tribunal notes that while obtaining and relying on legal advice may be a factor in mitigating the penalty, ultimately it is a matter for boards to exercise their own commercial judgement based on their knowledge of the issuer and its business to determine whether information is material information and whether disclosure is required," it said in a statement.

Veritas is still under pressure from the bank to restore its finances.

McD's tests McVegan burger in Finland 19th October 2017

As meat-eating continues to attract media attention (including the cover story in the latest Listener magazine) owing to health and environmental concerns, McDonald's is testing out a vegan version of its Quarterpoiunder in Finland. There are vegan fries, too.

McDonald’s is now offering a “McVegan” burger for a limited time. Although this is a step in the right direction, the burger is only available at the Tampere, Finland store until November 21.

But this is likely a test by the fast food chain and if the menu item performs well, we may see the vegan-friendly option available at several McDonald’s stores across the world.

The “McVegan” is similar to the McDonald’s staple the Quarter Pounder. The cheese-less burger comes with lettuce, tomato, onion, pickles, ketchup, and mustard.

But the burger isn’t the only vegan offering being served. This McDonald’s location is serving a vegan version of its beloved fries. The vegan fries will continue to be served after the “McVegan” LTO.

According to the “Top Trends in Prepared Foods in 2017” report by GlobalData, veganism is one of the six key trends outlined. Going meat-free was identified as the No. 1 trend.

Australian Franchise Awards – 2017 Results 11th 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

The Coffee Club finds new home for happy franchisee 10th October 2017

10 October 2017 – Waikato drivers can look forward to a high quality break after an expired lease meant a new opportunity for franchisee Richard Sun

Top 200 franchises bounce back 5th October 2017

5th October 2017 – After a sales decline last year, global franchises are on the rise again, says a US publication. Who's growing and who's struggling?

Columbus Coffee celebrating Red Nose Day for charity today 29th September 2017

It's Red Nose Day today! Head into your local Columbus Coffee to help celebrate and make your donation to Cure Kids or pick up a Red Nose, wristband or pin. To find out more about Cure Kids and the wonderful work they do, visit www.curekids.org.nz

Since Cure Kids was established by Rotary in 1971 as the Child Health Research Foundation, we have helped save and improve the lives of thousands of kids both here in New Zealand and around the world.

We have invested almost $40 million in research which has helped shape and change the way children who live with serious diseases and health conditions are diagnosed and treated.

The breadth of the work we support is wide; just some of the projects we have funded,or are currently funding, include childhood cancers, inherited heart conditions, cystic fibrosis, sudden unexpected death in infants (SUDI), stillbirth, burns, and child and adolescent mental health, among many others.

Cure Kids are the largest funder of child health research outside the government, and we are supporting the best science possible to make a difference to the health and well-being of children in New Zealand.

Support from every day New Zealanders makes this important work possible, and every year we are humbled by the generosity of Kiwis up and down the country who dig deep and donate to Cure Kids.

We are proud to be a fundamental part of improving and saving the lives of New Zealand children and, with your support, we will continue to give today’s and tomorrow’s children the best chance of enjoying a healthy childhood.

Donate for Red Nose Day

Bullet-proof your franchise from media threats - seminar 28th September 2017

One man and his dog celebrate Fastway's first Courier Day 27th September 2017

KFC launches table service for urban areas 27th September 2017

KFC has launched a ‘linger longer’ table service restaurant in central Auckland, with plans to open more in other urban areas.

Following a successful testing period, the Fort St location was specifically chosen to house KFC's first table serviced restaurant.

'The area that the [new] store is in has a lot of residential and commercial activity so people would like to be able to come in, sit down and have a quick meal.

'Having customers stand around, waiting for an order to then be able to take it and sit down is not ideal, and so table service became an important part of the solution to improve the experience.'

[Restaurant Brands CEO] Creedy says customers no longer just want food fast - they want an experience.

'Some people would prefer to have a discussion or a lunch meeting maybe and we have tried to offer them a variety of options; fast or linger a bit longer.'

Survey review: new franchises require care 25th September 2017

A large number of new franchises have launched on to the New Zealand market over the last five years. Simon Lord suggests some things to watch out for

Late payments rise for second consecutive quarter 19th September 2017

Fair Work Changes Pass In Australia 18th September 2017

Domino’s raises dough for Youthline 18th September 2017

Learn from NZ's top franchisors - Podcast & Video 1st September 2017

August 2017 – An experienced panel of New Zealand franchisors explored the 2017 National Franchise Conference theme of innovation, integration and resilience in business, sharing some vivid examples from their own experiences

Mad Butcher owner faces problems after bank withdraws support 29th August 2017

29 August 2017 - The future of publicly-listed Veritas Investments, the owner of the Mad Butcher franchise, is unclear after the company's bank pulled its support for the company. Veritas is looking at a possible sale or merger of its business.

We've posted a couple of articles on private equity and listed company ownership of franchises recently. Read Dr Callum Floyd's discussion of the pros and cons of private equity and listed company ownership for franchisors and franchisees, while Simon Lord questions how well financiers understand franchising here.

Veritas Investments, the NZX-listed owner of the Mad Butcher and Better Bar Company franchises, said ANZ would withdraw its banking facilities when they fell due in October and November.

This created "material uncertainty" for the company, which earlier this year sold the troubled gourmet supermarket brand Nosh, and its ability to continue.

The directors of the company were confident a solution could be found.

"The directors acknowledge that if the group is unable to obtain alternative sources of funding, within the required timeframe to enable the repayment of the bank debt, or receive an extension of timing of debt repayments to the bank to enable the group to execute any of the above options, then the going concern assumption would not be appropriate."

"Whilst material uncertainties exist, the directors consider that there is a reasonable expectation that the above options can be executed and that the ANZ will support the group through this process."

One in 20 Kiwi jobs is in franchising 28th August 2017

August 2017 - Latest info from the Survey of Franchising reveals that the sector is a major employer and trainer of New Zealanders

KFC uses VR gaming in new staff training programme 28th August 2017

KFC is incorporating the VR experience into a programme designed to show trainees how to cook its signature Original Recipe fried chicken. In order to get out of a virtual escape room, employees will have to play as a pair of disembodied hands to demonstrate (virtual) mastery of the five-step cooking process — inspecting, rinsing, breading, racking, and pressure-frying — all the while being cajoled by Colonel Sanders himself. The company says it's meant to 'instill pride' in KFC's heritage rather than being a serious training tool at this point, but it points to future uses of the technology in an industry where staff turnover means fast, efficient and inexpensive training is vital. Experience the game

KFC wanted to create a fun and engaging way to highlight the heritage behind its chicken recipe, using gamification and immersive participation to make it more memorable than say, a presentation or video. The experience -- dubbed “The Hard Way” -- will be shown at regional general manager training classes, quarterly franchise meetings and during corporate onboardings. Felix says that the experience is KFC’s “first foray” into VR.

The VR experience goes beyond linking a legacy company with modern tech. Through fresh characterization and storytelling, the training can better connect staff with the company's founder and mascot, capabilities and decades-long history, according to Jonathan Minori, design director with Wieden + Kennedy Lodge, the agency behind the project.

Warning - NZ women targetted by 'secret' pyramid scheme 28th August 2017

The Commerce Commission has issued a warning about women's 'gifting circles' which are no more than a pyramid selling scheme in breach of the Fair Trading Act. Unlike franchising, pyramid selling schemes promise payments for the enrolling of others, rather than sales of a product, and require the constant recruitment of new members - which is ultimately impossible. The latest scam is specifically targetting women in Auckland, Tauranga, Nelson and Golden Bay, and has been described by one victim as a 'spiritually transmitted disease.'

Pyramid schemes are illegal in 46 countries. The Commerce Commission wants to hear from anyone who has been approached recently to join a gifting circle, or anyone who has information that identifies anyone profiting from the scheme. Women operating a circle, or who invite others to join one, may be fined up to $600,000 per offence.

Pyramid selling or network marketing should not be confused with franchising, which is a reputable way of doing business where franchisees own their own business providing goods or services under a common brand. Understand how franchises work and see details from the latest Survey of Franchising.

Women pay a "gift" of US$5000 (NZ$7000) when they start as a seed, before moving on to sapling, then blossom and finally achieve the "Lotus" status to receive a US$40,000 payout from eight new women. If no new members are recruited, the circle can collapse.

A circle document entitled "25 Ways to Manifest Your Gift" encourages new recruits to sell their car, paint a neighbour's house, apply for a credit card or second mortgage, take out a loan or ask for an early inheritance.

The most disturbing is number 18, where they are encouraged to sell their blood or plasma, and even their eggs.

Women sign a document stating the money is "a gift and not an investment" and that they "expect nothing in return".

They receive coaching on how to recruit others and meet several times a week in person or by phone to discuss life, spirituality and personal development.

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.

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.

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.

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.

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

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.

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 late 2021.

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

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

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

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.

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