Best Practice Hub

FANZ supports best practice in franchising.  In view of recent employment issues that have arisen in Australia in franchising, FANZ has developed some recommendations for franchisor members to help them to assist franchisees to comply with their employment obligations.

FANZ’s general recommendation is that all franchisor members consider how they can support franchisee compliance with employment laws where the franchisee employs staff.  Franchisors can support franchisees in a variety of ways, through access to or directly providing franchisees information and education, tools, legal requirements (i.e. through specific Franchise Agreement or Franchisee Manual requirements) and monitoring.

While franchisors are separate legal entities that are not responsible for franchisees’ legal compliance, FANZ recommends franchisors take an active approach in some or more areas.

With the above in mind, any franchisor having any concerns about their own position should of course seek their own legal advice, and the following recommendations are not intended as a substitute for legal advice. They are intended as a number of options that could be considered by the franchisor and their advisers.

FANZ recommendations are:

  • Ensure that your franchise agreement clearly and specifically requires franchisees to comply with all New Zealand employment laws.
  • Keep franchisees updated about their employment obligations, and ensure mandatory changes to employment agreements are rolled out to franchisees. Depending on the size and resources of the franchisor, engage external HR specialists to train, update and assist franchisees in understanding their employment obligations. An employment “hotline” could be organised for franchisees who have employment issues or questions.  Set up a hotline or email account for employees to contact the franchisor directly if they have any concern about underpayments. Consider requiring franchisees to provide this information to their staff as part of their induction.
  • Include regular spot checks in field visits. The spot checks would, for example,  check franchisee compliance with employment obligations. Encourage franchisees to join an industry association (e.g. Restaurant Association), where those industry associations provide useful employment guidance to members.
  • Require or recommend franchisees use a cloud based payroll system.
  • Depending on the size and resources of the franchisor, implement spot checks or reviews of pay slips and records to make sure franchisees are meeting their record keeping obligations.
  • Require franchisees to conduct “self-audits” and report results.
  • Require franchisees to notify the franchisor if any employee lodges a personal grievance or raises an employment problem.
  • Employment New Zealand [(part of the Ministry of Business, Innovation and Employment) has excellent online resources. Share these with your franchisees and encourage (or require) your franchisees to undertake specific learning modules.
  • Ensure that franchisees advise their new employees of Employment New Zealand’s resources so that the employees are aware of their rights.
  • Franchisors should act if they are put on notice that a franchisee may not be complying with their employment obligations.

 

 

Know your minimum employment rights and responsibilities

Online Employment Learning modules have just been launched by Employment New Zealand, part of the Ministry of Business, Innovation and Employment.

For our hiring managers…

The six employer modules take you through essential employment information from what must be in employment agreements to a quick guide on annual leave/holidays obligations.

For new employers, these are a great way to find out everything they need to know about their responsibilities. You can start today by visiting employment.elearning.ac.nz

For our employees …

Another six modules have been created for employees, to help them understand their minimum rights. The modules are a handy resource for employee inductions and for current employees, keen to get up to speed on their minimum rights.

It’s important to start any employment relationship on the right foot and these modules help to identify and mitigate any misunderstandings at the outset.

Get your employees to complete these free online modules, particularly those employees who are new to work or new to New Zealand.

There’s plenty more on employment agreements and other important topics in the online modules, which can be found on the Employment New Zealand website here employment.elearning.ac.nz

Employment agreements modules:

One of the most important modules for both employers and employees are employment agreements.

Employment agreements give both parties clarity on what’s expected of each other and the key employee and employer rights and obligations. It also helps you to understand what the job involves, the working conditions and processes to use when a problem arises.

 Know your Labour Rights

Please click here for Labour Rights Principles.

" With employment, safety and food safety legislation ever increasing, I feel that FANZ working alongside the government is a hugely important part of the association’s role. "

JON HASSALL, Chief Operating Officer

Cafe Brands Limited

" It was a complete surprise that we ended up winning the Supreme Franchise System of the Year. This has been a huge boost to us and we are currently processing Franchise enquiries at a level I never thought possible. "

DAVID PEARSE, Managing Director

Pukeko Rental Managers

" It is important for franchises to come under the umbrella of the Franchise Association and see it as an investment to succeed in franchising. Otherwise you stand alone, without the continuing support and education that you need to build your business. "

DAVID PEARSE, Managing Director

Pukeko Rental Managers

" “We have won several FANZ awards. The process of entering forces you to look at your business in a very analytical way that perhaps you would otherwise not take the time to do. "

DAWN ENGELBRECHT – Director

SKiDS

" Being a franchisor / General Manager can be lonely and it’s not always human nature to share stories of hard times, failure or struggles. However, when you’re connected to a group of like-minded business people who have travelled a similar path, you’ll find yourself supported & encouraged. "

JON HASSALL, Chief Operating Officer

Cafe Brands Limited

" Knowing that FANZ have a strong and proactive advocacy approach to legislation that may affect their members is a significant member benefit. SKiDS recommends other franchise systems to also join FANZ – if we want FANZ to have a strong voice when advocating with Government then we need to have a strong and diverse membership body to back them up. "

DAWN ENGELBRECHT – Director

SKiDS

" We find the awards particularly useful for inspiring staff and franchisees and usually take a large group to the awards evening. The celebration of achievement is a real boost to morale. And of course it is a great achievement for our business to receive recognition. "

GALVIN BARTLETT, Director

Paramount Services Ltd

" Being members ensures we keep up to date with relevant issues and changes, and ensures we are aligned with Best Practice in Franchising. The NZ franchising community is very collegial and supportive. Franchisors are amazingly willing to share their knowledge with each other. "

DAWN ENGELBRECHT – Director

SKiDS

" The education that FANZ provides is invaluable. I have attended as many seminars and conferences as I can to identify and address areas where I can improve. "

DAVID PEARSE, Managing Director

Pukeko Rental Managers

" Attending the annual conference allows us to meet and discuss issues, challenges and successes with industry peers and get some fantastic insights into the franchising sector in general. "

SCOTT JENYNS, CEO (2014-2022)

Aramex NZ (formerly Fastway Couriers)

" Credibility and networking with other franchisors is incredibly valuable. The franchise sector is very supportive and there is significant sharing of ideas and information – more so than any other association or environments I have been involved with. "

GALVIN BARTLETT, Director

Paramount Services Ltd

" I am proud to be a member of FANZ. It means any potential franchisee can have confidence they are entering a credible franchise system that acts with integrity and fairness, and complies with the FANZ codes of Ethics and Conduct "

IAN ROBERTSON, General Manager

Ecomist

" Whether a new or an established franchising business, we highly recommend joining FANZ. Not only do they guide you around the complexities of operating a franchised system, the backing of specialist advisors and a knowledgeable franchising community offer ongoing guidance to those looking to grow a successful franchise with strong and secure foundations. "

SCOTT JENYNS, CEO (2014-2022)

Aramex NZ (formerly Fastway Couriers)

" When recruiting new franchisees, we explain that we are focused on best practice and they must seek advice from professionals as per the FANZ Code of Practice. It enhances our credibility. "

GALVIN BARTLETT, Director

Paramount Services Ltd

" It is hugely important to have representation for franchising. Individual systems do not have the resource to do this on their own so to have a body acting on your behalf is great. FANZ have a strong board and base of legal members who have a real strength in this area. "

GALVIN BARTLETT, Director

Paramount Services Ltd

" Realising you are not alone in the world of franchising and knowing any situations you find yourself in, other members probably have been there too and therefore can advise on their experience and outcomes "

JULIE EVANS – CEO

Rodney Wayne

" The association provides a voice for the many franchise systems in New Zealand to ensure any legislative changes that could have an impact on franchising are made through the right government channels. The association has done an exceptional job here over the years. "

SCOTT JENYNS, CEO (2014-2022)

Aramex NZ (formerly Fastway Couriers)

" The awards gives us an opportunity to put forward some of our top performing franchisees, giving them the well-deserved opportunity to be recognised and awarded on a national level. "

SCOTT JENYNS, CEO (2014-2022)

Aramex NZ (formerly Fastway Couriers)

" Relationship building has been one of the most significant member benefits for me and the businesses I have managed. FANZ members are willing to share information, experience, knowledge and support. It’s like being in an extended family. "

IAN ROBERTSON, General Manager

Ecomist

" We tell prospective franchisees that we are proud members of FANZ and we encourage them to do the free on-line pre-entry training that is available through FANZ. "

DAWN ENGELBRECHT – Director

SKiDS

" The FANZ conference is incredibly informative and a great place to improve your knowledge about franchising. One of the other key benefits is having so many franchisors in one place at one time means it’s a great venue for networking and relationship building. "

IAN ROBERTSON, General Manager

Ecomist

" Amongst other initiatives, our FANZ Board has a clear focus on building and strengthening the relationship between FANZ and the Government. I believe it is incredibly important that Government agencies see FANZ as the ‘go-to’ body for any legislative changes that may impact franchising. "

IAN ROBERTSON, General Manager

Ecomist

" I have personally found the conferences to be a highlight of my year. What I have learned and the knowledge sharing has been of tremendous value. "

DAVID PEARSE, Managing Director

Pukeko Rental Managers

" We joined, and continue to be a member of FANZ, because it represents what’s good and right about franchising; it’s ethical, credible and has integrity. As members, we voluntarily adhere to the FANZ Codes and Rules. "

IAN ROBERTSON, General Manager

Ecomist

" It is extremely important that FANZ represents us in government. Who else will advocate for franchises in New Zealand? We need Government to know about the good work that is being done to assist people into successful businesses. "

DAVID PEARSE, Managing Director

Pukeko Rental Managers

" Recruitment is a large part of our business and making sure potential franchisees are aware of our affiliation with FANZ helps authenticate our company. This relationship reassures any potential franchisees that we are part of a larger franchising regulatory body that ensures we adhere to a strict set of codes and rules. "

SCOTT JENYNS, CEO (2014-2022)

Aramex NZ (formerly Fastway Couriers)

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