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Survey review: new franchises require care

posted on 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

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Late payments rise for second consecutive quarter

posted on 19th September 2017

Dun & Bradstreet’s quarterly report suggests the economy is in sound shape for now despite what it calls 'surprisingly moderate' growth

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Fair Work Changes Pass In Australia

posted on 18th September 2017

New legislation in Australia makes franchisors responsible for franchisees’ employment breaches. The Asia-Pacific Centre for Franchising Excellence offers some advice for anyone operating across the Tasman

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Domino’s raises dough for Youthline

posted on 18th September 2017

18 September 2017 - Domino’s will host a national Doughraiser this Thursday where more than 100 stores across New Zealand will donate $1 from every pizza sold to youth development organisation Youthline

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Learn from NZ's top franchisors - Podcast & Video

posted on 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

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Mad Butcher owner faces problems after bank withdraws support

posted on 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."

Read more from the Stuff report.

There's also some interesting analysis and comments from the NBR and its readers.


One in 20 Kiwi jobs is in franchising

posted on 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

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KFC uses VR gaming in new staff training programme

posted on 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

posted on 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

posted on 25th August 2017

25 August 2017 - Inland Revenue is warning people about a particularly sophisticated email tax scam circulating today.

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Joint employer liability proposed in Australia

posted on 25th August 2017

A Labor senator in Australia is proposing amendments to make the Protecting Vulnerable Workers Bill even tougher.

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Bags of success for charity handbags

posted on 25th August 2017

25 August 2017 – The ‘free facials for handbags’ charity promotion at Caci collected over 1,000 handbags for Dress for Success

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Economy throttling back but growth to continue

posted on 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.

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FAB Group plans UK launch

posted on 12th August 2017

August 2017 – As new Caci outlets continue to open, FAB Group announces the brand for its new offshore venture launching in the UK later this year.

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Go barking mad for cupcakes at The Coffee Club

posted on 12th August 2017

August 2017 – The SPCA’s Cupcake Day is getting some sweet support from The Coffee Club’s customers

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Tauranga Event - Making a Kiwi franchise great again

posted on 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.

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New FANZ board announced

posted on 8th August 2017

August 2017 - Two new appointees bring massive experience to the board of the Franchise Association of New Zealand

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Stonewood Homes wins at House of the Year awards

posted on 2nd August 2017

A Stonewood Homes franchisee has walked away with one gold and one silver award at the Registered Master Builder House of the Year awards

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McDonald's extends Uber delivery

posted on 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.

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New survey confirms NZ is the most franchised country in the world

posted on 24th July 2017

24 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, which has just been released

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