Shake-up as Wendy's Supa Sundaes franchisees split
posted on 1st July 2018
The former master franchisee for Wendy's Supa Sundaes in New Zealand has led a breakaway group rebranding the 32 stores here as Shake Shed & Co. The move follows a change of approved suppliers imposed by franchisor Supatreats NZ Ltd, which is owned by Singapore-based parent company Global Food Retail Group. The change sees Wendy's Sundae Stores reportedly required to sell ice cream from an Australian supplier at a higher price than the New Zealand product previously used. The franchisor is currently seeking an injunction against the master franchisee and sub-franchisees.
Former New Zealand Wendy's master franchisee Chang Xi said the franchisee businesses operating in shopping malls had united and collectively abandoned their agreements following restrictive measures from the ice-cream brand's owner, which had harmed local operations.
Xi said local owners fear their businesses will go under and jobs lost if they are forced to return to operate as Wendy's.
'We rebranded as a group as we feel that we need to be separated from this international franchisor to be able to survive,' Xi said.
'We have encountered a very terrible situation. All New Zealand franchisees are extremely upset.'