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Practical workshop: Franchise Financial Essentials

posted on 18th March 2019

5 March 2019 - An insightful and accessible two-day financial workout in Auckland next month is aimed at franchisees, franchisors and field managers

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Education - who trains the trainers?

posted on 18th March 2019

March 2019 - If franchisors want to help franchisees build better businesses, they need to invest in themselves

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Report recommends more changes for Australian franchising

posted on 18th March 2019

16 March 2019 ­– The final report from Australia’s Parliamentary Inquiry into the franchise sector there makes sweeping recommendations but the time-frame for any changes is uncertain. Jason Gehrke summarises the report; additional reporting from New Zealand by Simon Lord

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Migrant workers allegedly exploited by Bottle-O franchisee

posted on 6th March 2019

The Migrant Workers Association has gone to RNZ with claims that a franchisee of the Australian Bottle-O chain has underpaid workers in his Auckland and South Island stores. The Labour Inspectorate is investigating, having previously issued an Enforceable Undertaking to the owner for failings in employment agreements, record keeping, and provision of holiday and leave entitlements.

Franchisors take such failings very seriously, as they are a breach of franchise agreements which require franchisees to comply with New Zealand employment law obligations. In many cases, the franchisor terminates the franchise agreement, leaving the franchisee with no business as in this case.

The Franchise Association has been working pro-actively with the Labour Inspectorate and specialists in the employment area to help franchisors make franchisees better aware of their obligations.

Three migrant workers claim Bottle-O franchise owner Ravinder Arora has underpaid them by tens of thousands of dollars, and even asked them to repay him money, the Migrant Workers Association says. 

The association said in one case a worker at the stores based in Auckland and the South Island worked 84 hours in a week but was only paid for 32 hours, meaning their actual pay was only $7 an hour, half the legal minimum wage of the time. 

In another case Mr Arora paid the workers correctly and according to their pay slips, but would then demand the employees refund him thousands of dollars in cash, again leaving their pay packet light and below the minimum wage. 

The Labour Inspectorate has confirmed it is "currently progressing proactive investigations in Mr Arora's Nikhil Himalaya Companies".

RNZ has made repeated attempts to contact  Ravinder Arora  - he hung up on our producer after telling her to contact his lawyer, but refused to provide details for them.

Employees at two of his Auckland businesses today said he was not on site, but that they were paid fairly and above the minimum wage.


Burger King NZ up for sale

posted on 3rd March 2019

The whole of the Burger King New Zealand franchise is up for sale, following a decision by American private equity firm Blackstone to sell the company. Blackstone paid close to $108m in 2011 for the franchise, which makes an estimated $20 million per year according to the Australian Financial Review. The company does not sub-franchise, with 83 of the 85 Burger King restaurants in New Zealand being operated by the Blackstone-owned Antares Restaurant Group.

Blackstone was rumoured to be receiving offers for Burger King in 2016, but held on to the business at that time.

A spokesperson for Craigs Investment Partners confirmed it has been mandated to sell the business on behalf of Blackstone. Deutsche Craigs has been hired to run an auction for the fast food business.

The last few years have been turbulent for Burger King, which has faced scrutiny for its treatment of staff and questionable working conditions.


Pizza Hut franchisee's staff quit over food safety concerns

posted on 27th February 2019

A Dunedin Pizza Hut franchisee is under fire after allegations by former workers that he served expired food, extended expiry dates and refused to fix faulty equipment. The franchisee has denied the claims, which were backed up by photographs allegedly taken in his stores. Restaurant Brands, which is the master franchisor for Pizza Hut in New Zealand, is treating it as 'a matter of urgency'. NZ-listed Restaurant Brands is currently the subject of an $881 million bid from Mexican company Finaccess Capital.

Hayley Bevin, 26, quit her job of seven years at Pizza Hut in Dunedin about three weeks ago after what she describes as a series of ''disgusting'' actions by the franchise owner.

Dunedin has two Pizza Hut stores, one in Hillside Rd, South Dunedin, and another in Great King St, North Dunedin.

Naveen Malhotra took over the two franchises of the chain about three months ago, and the hygiene and staff treatment ''kept getting worse'' after that, Bevin said.

He extended best-before dates on food, including chicken and seafood, she said.

The workers were told to use ''disgusting, crusty'' expired dough.

He also refused to fix a mixer which was leaking oil into dough, she said.

The last straw came when expired brownies which she had thrown in the skip were put back in rotation, she said. ''I came back on Monday and they were in the chiller. I knew it was the same packet, because I took a photo of it before I left.''

Restaurant Brands said it was aware of the issues and was working through them as a ''matter of urgency'', and the Ministry for Primary Industries is investigating.

The franchise owner has denied the claims.


How would capital gains tax affect the franchise sector?

posted on 26th February 2019

25 February 2019 ­– With a proposed capital gains tax the major talking point at the moment, Philip Morrison of Franchise Accountants looks at possible implications for franchisors and franchisees

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How couple with no experience built a world-class business

posted on 24th February 2019

February 2019 - From learner to leader: we look at how franchising can help someone with no experience in an industry develop a world-class business

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Economy is 'extraordinarily ordinary', says Westpac

posted on 19th February 2019

20 February 2019 – The latest Westpac Economic Overview, published today, says that the economy is unusually average at the moment. Where will it go from here?

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Business as usual after fire guts franchisees' building

posted on 1st February 2019

1 February 2019 – Sometimes, it’s the unexpected things that pay off when you buy a franchise

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Franchising starts 2019 with hint of optimism

posted on 31st January 2019

1 February 2019 – Business confidence seems to be creeping back after several quarters of pessimism, and franchising is no exception. The latest Franchising Confidence Index shows improvement in sentiment over the previous quarter towards general business conditions, access to suitable franchisees, operating costs per franchisee and franchisor growth prospects. There are still challenges, but opportunities too.

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Employment law changes - does your franchise comply?

posted on 28th January 2019

January 2019 - The Employment Relations Amendment Act 2018 introduced a number of employment law changes that aim to improve fairness in the workplace and deliver decent work conditions and fair wages. The first changes came into effect in December 2018; the remainder will become effective in May 2019. Is your franchise prepared?

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Coffee franchise named best for service

posted on 14th January 2019

January 2019 ­– The Coffee Club has scooped gold in the Reader’s Digest quality service awards

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Work to live - don’t live to work

posted on 2nd January 2019

As the weather improves at last, some people are already having to return to work. Would owning your own business give you more of what you desire? Here's an article from December 2012 about how to get the five F-words that most people actually want in their lives: Family, Flexibility, Fun, Freedom and Finance.

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Slice of advice for teen entrepreneur from Mayor of Gisborne

posted on 21st December 2018

21 December 2018 – 16-year-old entrepreneur Oliver Lodewyk got more than he bargained for as a nominee of Hell Pizza’s Satan’s Little Helper scheme – first-hand business advice from the mayor himself

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IKEA to open in New Zealand

posted on 19th December 2018

20 December 2018 - After many years of wondering and waiting, New Zealand is to get its first IKEA stores.

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Taco Bell will be franchised in NZ

posted on 16th December 2018

December 2018 - Restaurant Brands New Zealand Ltd on Tuesday has reached an agreement to expand the Taco Bell brand in New Zealand and Australia. According to the company, the deal dictates the construction of more than 60 new Taco Bell restaurants in New Zealand and Australia before 30 June 2024, the company said in a statement. Restaurant Brands already owns and operates 36 Taco Bell stores spread throughout Hawaii and Guam, as well as the KFC, Pizza Hut, and Carl's Jr. brands in New Zealand. The company dropped Starbucks earlier this year.

Restaurant Brands group chief executive Russel Creedy said the company wanted to build a franchise system with the brand. This suggests a change of direction for the company, which has previously operated the majority of its outlets under management with the exception of some regional Pizza Hut stores. Taco Bell previously entered Australia under a different operator in 1997 with a stand-alone store and a few store-within-a-store concepts in KFC branches, but by 2005 they had all gone. The brand has never before been tried in New Zealand, where Mexican food has become increasingly popular in recent years with chains such as Mexicali Fresh, Mexico and Zambrero all doing well.

In October 2018, Restaurant Brands announced that it was in takeover talks with Mexico-based Finaccess Capital which had made a $578 million bid for a 75 percent controlling stake in the NZX-listed company.

Restaurant Brands group chief executive Russel Creedy said the company wanted to build a franchise system with the brand.

"Bringing the Taco Bell brand to this part of the world aligns with our strategy of focusing on global tier-one brands in markets we understand," Creedy said.

"We know from our experience in Hawaii and Guam that Taco Bell is a top-tier brand backed by excellent franchise systems."


Kiwi stars decorate charity coffee cups for KidsCan

posted on 27th November 2018

26 November 2018 - The Coffee Club's annual Christmas Cup Art Competition for KidsCan has some big kids involved as well this year

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Regions on a roll - economic overview

posted on 22nd November 2018

The latest economic overview from Westpac finds it's 'different strokes for different folks' as regional economies are at their most buoyant in years

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Franchise Awards 2018 Results - IT’S BUSINESS TIME

posted on 10th November 2018

10 November 2018 ­– Business-to-business franchises proved there’s more to franchising than burgers when they took out the top titles at the Westpac New Zealand Franchise Awards. Once again, winners came from all round the country.

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