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The company launched its "Make Burger History" site this week, as part of a new promotion where customers can "build your own unique burger" and get free fries and a medium soft drink.

"Just come in to a participating 'Create Your Taste' McDonald's and order your Creation at the self ordering kiosk," McDonald's promised.

But its failure to consider what pranksters might dream up online has left the company red-faced, with the website overrun by racist, homophobic and otherwise offensive suggestions. The page now redirects to the McDonald's homepage.

"Despite many offers to help and a rent holiday being negotiated on his behalf, the [current] franchisee has been unable to turn around a consistent slide into poor performance," Cook said.

He said the franchisee was offered a "top performing proven operator free of charge" and an advertising package to help turn the business around.

"This was rejected by the franchisee," Cook said, adding that he had been surprised by the liquidator's lack of understanding of the state of the business.

"It is a lesson for all franchisee businesses that you can't simply buy a business and expect good performance to be maintained if you are not working in and on the business."

The vehicle, based on United States military hardware and input from Australian defence contractor, Marathon Robotics and other advisers, was a four-wheeled vehicle with compartments "built to keep the customer's order piping hot and drinks cold whilst travelling on the footpath at a safe speed from the store to the customer's door".

It was able to navigate from a starting point to destination, selecting the best path of travel, the marketing said. "His on-board sensors enable him to perceive obstacles along the way and avoid them if necessary."

Domino's wants to spin its robot wheels in New Zealand, where law covering the rollout of driverless technology is less rigid. Australia allows testing of semi-autonomous vehicles but not the unguided type that Domino's has in mind.

It hoped to start an DRU trial in this country in the first half of 2017, Bush said

Big Mac deliveries have taken off in Australia, with customers able to order online after setting up an account with the fast food restaurant. The online account can be set up to allow super-fast reordering with a "save your favourites" function.

There is no McDelivery option on the New Zealand McDonald's website, but the McDelivery logo has made an appearance on the Government's Intellectual Property Office's register of trademarks this month.

Subway was going through significant challenges and changes – largely due to the death last year of Subway founder, Fred de Luca, said BurgerFuel chairman Peter Brook.

Franchise Brands had not confirmed it would continue its involvement with BurgerFuel and the New Zealand company was not prepared to enter the US without that support, he said. A decision was expected in the next few weeks.

BurgerFuel posted a $1.1 million loss in the year to March 31, compared to a $817,000 profit the previous year. The loss was largely attributed to spending related to the planned US expansion.

The chain opened 12 new stores in the past year in New Zealand, Australia and the Middle East, taking the total number of BurgerFuel stores to 78.

Terrorism and instability in Kuwait resulted in lower sales than originally anticipated and in January the two BurgerFuel stores there were closed . A new store opened in May in Baghdad was performing well.

BurgerFuel pulled out of Iraq in 2014 due to an increased threat from Islamic State militants.

Industry analysts say Burger King is now trading pretty well. They are tipping the company, which could fetch between A$140 million (NZ$149 million) and A$160m, will soon release financial results that reflect an ongoing improvement in performance.

Should Blackstone give the green light to a formal sale process, likely trade buyers include 'Hungry' Jack Cowin, who owns the Hungry Jack's franchise in Australia and is a major shareholder in Domino's, as well as Stephen Copulos, a former KFC franchisee who sold 42 outlets to New Zealand outfit Restaurant Brands in March for A$82m. 

The business may also be attractive to some regional private equity funds who are building pan-Asian portfolios of fast food outlets.

"In the iced coffee example, a Starbucks customer who orders and pays for a Venti iced coffee, expecting to receive 24 fluid ounces (709mL) of iced coffee based on Starbucks' advertisement and marketing, will instead receive only about 14 fluid ounces of iced coffee."

The suit also claims Starbucks is making more money off its customers than it should.
"In essence, Starbucks is advertising the size of its cold drink cups on its menu, rather than the amount of fluid a customer will receive when they purchase a cold drink - and deceiving its customers in the process," the complaint states.

Ms Pincus is seeking $US5 million in damages. The case is a class action, representing anyone who bought a cold drink from Starbucks in the US in the last decade.

Starbucks has dismissed the lawsuit, saying staff would happily remake a drink for any unsatisfied customer.

Professor Lorelle Frazer, director of the Asia-Pacific Centre for Franchising Excellence, told SmartCompany the apparent lack of time and money spent on undertaking due diligence was the most surprising finding to come out of phase two of the research.

“Business owners are often so concerned to know how much it will cost to buy or start a business, which is a big investment, that the last thing they invest in is education leading into it,” she says.

While Frazer says there are some free resources available to prospective business owners, including from governments, it is more often the case that these individuals are missing out on specific, expert advice that applies directly to their business.

“Each business is unique,” Frazer says.

“They need to do their own personal due diligence for their particular business, to make sure they are in the right market, understand the competition and if they are paying the right price for the business.”

Frazer says one of the concerns in the franchising sector is the tendency for prospective franchise owners to seek general professional advice, as opposed to specific advise about franchised business models.

More than half of all Australian franchise brands and more than a quarter of all New Zealand brands have attended a Franchise Advisory Centre event. In May, five top workshops for franchisors and their leadership teams return to Auckland.

Chris Quin, the new Foodstuffs North Island chief executive, said this week that the move was a big step forward for the business and its customers.

Rival Countdown has offered online grocery orders for many years, he acknowledged. But Quin said he expected click-and-collect orders to be a significant market share, whereby customers would order online but collect the goods themselves.

The supermarket chain will use trucks and staff from each store to deliver the goods, rather than contracting the service out, he said.

More than 10 per cent of New Zealand retail sales were now online so he projected big growth. "New Zealand has a growing population and it's getting harder and harder to buy sites, so you can serve more customers," he said, indicating new supermarket development rates might fall as online picks up.

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The length of time it had taken Foodstuffs to go ahead with online orders was partly driven by resistance from supermarket owners, the critic claimed.

The online supermarket model was internationally challenging because big scales of business were needed to make home deliveries of food items work to cover the extremely high costs involved, he said.

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Mettrick said he had no issue with the Inno's decision to cancel the franchise agreements. 

In reference to the outstanding franchise fees, Mettrick's solicitor Mark Odlin said the entities may owe historic franchisee fee arrears to Stonewood Homes New Zealand Ltd, a debt which Inno may have purchased from the receivers.

If it was the case, the entities, not Mettrick personally, owed the money to Inno.

Before making the decision, Webber said Inno Capital was in contact with the Registered Master Builders Association. It has plans to ensure homeowners affected by the decision got "the best outcomes".

Meanwhile, work to complete the first 50 homes in Canterbury affected by Stonewood's receivership started this week.

The brothers, whose assets include commercial property, hotels and strip clubs, said the deal covered both the national franchise rights and the Christchurch franchisee.

"Stonewood complements our office, retail, accommodation, and car park property portfolio," John Chow said in a statement in Christchurch on Wednesday. 

"This purchase signals our clear intention to repair recent damage to the brand and to re-establish the Stonewood brand nationally on a very firm footing."

Last Thursday, the Chow brothers and Webber met the 44 remaining employees of the company and offered them "new contracts on similar terms", they said in a statement.

"While we still have quite a process to work through with the receivers, our next step will be to engage urgently with customers with uncompleted homes.

"It's vital we provide certainty for customers who have been affected. We have a management team of eleven here in Christchurch to seal the deal but we ask for tolerance from affected parties," Webber said.

Shortly after the company was placed in receivership, 41 staff were laid off.

Grant Graham of KordaMentha said the sale to Inno Capital included the business and assets of the companies.

The "prompt sale" was the best possible outcome in the circumstances, he said.

Restaurant Brands [NZX: RBD] is expanding its footprint across the Tasman, acquiring  Australia's second-largest KFC franchise for $A82.4 million.

The deal sees Restaurant Brands acquire all the shares in QSR Pty – the largest KFC franchisee in New South Wales – owned by Australian property developer Stephen Copulos.

A notice to the NZX this morning states QSR is a profitable operator with 42 stores, generating sales in excess of $A100 million and earnings before interest, tax, depreciation and amortisation of more than $A15 million a year.

The headline of its news release said the company was entering Italy "with humility and respect" for the country. Schultz said he plans to develop a coffee blend specifically for the Italian market and add a bar for customers to stand at, as is custom in Italian coffeehouses.

The company will also be going local with a partner, working with Percassi - which Srere noted is "hugely respected in Italy" - as the licensee to operate its stores.

Branding experts said the humble and local approach was the right one.

"You've got to go and kiss the ring here - you don't mess around with Italy and coffee," Ries said. Companies need "to be authentic, and to not just be the big American brand with guns blazing, coming in to take over the town."