Greetings New Zealand Franchising Leaders. I hope this message finds you well.
In this issue we touch on:
- Prospective Franchisee Research – What do they want?
- More Regulations Impacting Franchising
- Franchisee Satisfaction Webinar
- Governance and Franchise Advisory Councils Workshop
- October Franchisor Training Dates: Building Great Franchisor Teams
- Motorcycle News
Franchisee Research – What do new franchisees want?
Together with Franchise New Zealand Media, Franchize Consultants are pleased to let you know we have launched a joint survey of New Zealand Prospective Franchisees. The detailed survey will provide valuable insights into new franchisee demographics, motivations, interests, research and decision-making, and expectations.
This research follows a similar survey Franchize Consultants conducted in 2010. It will be very interesting to see the similarities and differences in New Zealand prospective franchisees some 12 years on.
Prospective and new franchisees have been completing the survey in good numbers and patterns are emerging. Please let us know if you have an interest in insights from this research. Email firstname.lastname@example.org or call (09) 523 3858.
More Regulations Impacting Franchising
As we noted in our last Franchize Bulletin, recent regulations and a new focus on franchising mean we are in an increasingly challenging time for established franchisors (and franchisees), and for new companies considering franchising. In that update we mentioned the Cartel Amendments to the Commerce Act and The Fair Trading Act’s “Unfair Contract Terms” regime, which is being extended to many B2B contracts from 16 August 2022.
We also noted the government’s new immigration settings for the Assisted Entry Work Visa featuring much more restrictive requirements, extraordinary planning, and greater cost (and restrictions) for franchisees – and their supporting New Zealand franchisors alike.
There is also the recent MBIE Discussion Paper, which FANZ has responded to, entitled ‘A legislative response to modern slavery and worker exploitation.’ The paper invited consultation and specifically identified a range of proposed responsibilities which could be very impactful for some (particularly large) franchisors. Even for small franchisors with an entity revenue size under $20million (as for other businesses of this size), new responsibilities would include:
Responsibility 1: Take reasonable and proportionate action if they become aware of:
- modern slavery in their international operations and supply chains, or
- modern slavery or worker exploitation in their domestic operations and supply chains.
Responsibility 2: Undertake due diligence to prevent, mitigate and remedy modern slavery and worker exploitation by New Zealand entities where they are the parent or holding company or have significant contractual control.
Finally, Fair Pay Agreements legislation is nearly here. According to MBIE, The Fair Pay Agreements Bill was introduced into Parliament on 29 March 2022 and is now going through the full parliamentary process. The Bill is now at the Select Committee stage and submissions closed on 19 May.
The Fair Pay Agreements legislation could be very impactful in some sectors where franchising is prevalent. The legislation is intended to address situations where employees are experiencing poor labour market outcomes, but the process proposed for establishing a Fair Pay Agreement is incredibly complex and, in a number of respects, appears both intractable and unfair from a small business and franchising perspective.
It will be important for franchisors with unit-level business models involving employees to at least consider a) how this new legislation could impact their franchise networks and b) how they will monitor and be involved (whether directly or indirectly) or not in any Fair Pay Agreement propositions and subsequent negotiations and submissions.
Franchisee Satisfaction Survey Webinar for Franchisors
On 31 May we held the webinar for franchisors focused on Franchisee Satisfaction Surveys. The webinar covered a range of topics relating to franchisee satisfaction surveys, like the drivers of franchisee satisfaction, different survey methodologies, franchisee satisfaction benchmarking and use of results.
We thank Matthew Still from Laser Group, Brad Jacobs from The Coffee Club and Jason Hill from Green Acres for their contributions to the session .
If you have an interest in what we covered in the webinar, please let us know.
More Effective Franchise Advisory Councils & Franchise System Governance Workshop
We’re looking forward to running a workshop at the Franchise Association of New Zealand National Conference. The workshop will explore, with the involvement of attendees, practices to improve Franchise Advisory Council and franchise system governance effectiveness. The workshop will consider the structure and management of key Franchise Advisory Council processes, and the intersection between Franchise Advisory Councils and franchisor governance.
October Franchisor Training Dates: Building Great Franchisor Teams
Accelerate your results through increased capability.
Build your Field Management team with three full day equivalent online foundations courses:
- Franchise Field Visit Foundations – October 18 & 19
- Improving Franchisee Performance – October 25 & 26
- Franchisee Business Planning – November 1 & 2
For new franchisors and General Managers, check out our in-person, in-Auckland, two day programme:
Managing a Franchise System – November 8 & 9
How can we help you?
Contact us if you’re contemplating franchising a business or would like help with an established franchise network. We’d be very happy to sit down with you to understand your situation and objectives and explain the supporting services we provide.
I recently enjoyed a long day taking in Awakino, Waikawau, Marokopa, Kawhia and Raglan, before returning to Auckland. It was a cool 3 degrees Celsius heading south through Te Kuiti and the Awakino Gorge. Breakfast and thawing followed in Mokau, then the day warming as I progressed up some great gravel roads of Waikato’s west coast. I thoroughly recommend checking out the Waikawau Stock Tunnel and beach. Waikawau beach is a stunning west coast beach, only accessible via the tunnel, albeit a little remote.
All the best from myself and the team at Franchize Consultants.