Franchise Association of New Zealand Complaints and Dispute Resolution

Complaints and Dispute Resolution

There are several options for dealing with disputes within a franchise. The Franchise Association offers an independent complaints service which is outlined below. There are also the other options of Mediation, Arbitration and Court. It is always best to seek legal advice to understand which option is best suited to your situation.

Franchise Association members are required to undertake to comply with the Association’s Code of Ethics and Code of Practice. These commit them to take various steps including requirements that a process is followed.

Complaints Process

Who can make a complaint

Anyone can make a complaint against a member of the Association. If the member has:

Breached the Association’s Code of Ethics; or
Breached the Association’s Code of Practice; or
Breached the Association’s Rules.

You do not need to be a member to make a complaint. If you are a franchisee, and your franchisor is a member, you can, therefore, make a complaint against your franchisor.

To check if the party you want to complain about is a member, look to see if they are listed on the FANZ Member List or contact the FANZ office for confirmation.

Is the FANZ complaint process right for you?

Complaints Process Flowchart

Complaints Procedure

Complaints Procedure

Complaint Lodgment Form

Further Information

Download our Frequently Asked Questions for additional information that may be useful.

Dispute Resolution

If you have a problem or a dispute then the following general information may assist you find a way to resolve that dispute. This information is not intended as a substitute for legal advice. Please see you lawyer for advice specific to your issue.

To the right is a list of Franchise Association approved mediators. Click on a mediator’s name on the right to find out more.

Mediation

It is an important requirement of the Association’s Code of Practice that Franchisor members have a dispute resolution clause in their franchise agreements which requires them to attempt to resolve dispute with you by negotiation and mediation. This means franchisors must mediate disputes, if they cannot be resolved by face to face meeting or other negotiation.

Mediation is a much cheaper and quicker method of resolving disputes than going to Court. It is known as a method of alternative dispute resolution, because it is alternative to going to Court. The Association promotes mediation as a method of dispute resolution for these reasons. The other benefit of mediation is you can negotiate outcomes that a Court would not be able to order.

In a mediation, the parties negotiate an acceptable outcome to their dispute. The mediator has no power to impose a finding on the parties. If the dispute does not resolve at mediation, then the next steps are Arbitration or Court.

If you do have a dispute, you should therefore first check your agreement to see if there is a compulsory mediation clause in your agreement. You will then need to follow the process set out in your agreement to resolve the dispute.

The requirement to mediate does not apply in every case, for instance it does not apply if either party needs to seek an injunction remedy from the Court. Please take advice on your own position to see whether your dispute can be mediated.

Arbitration

Some franchise agreements provide that in the event the dispute is not resolved by Mediation, the parties must arbitrate their disputes. Arbitration is also much quicker than taking a case to Court, although not necessarily any cheaper. In an arbitration, a privately chosen arbitrator (usually a retired Judge or senior lawyer) will preside over the dispute and make findings that bind you. You will have to give evidence and be cross examined, much as you would in any Court case.

Court

Taking a case to Court tends to be a pathway of last resort, because of the expense and delays involved with that process. As with arbitration, the outcome of the case is decided by a Judge, following a trial.

Franchise Association Mediation Panel

In the event the parties cannot agree on a mediator, some franchise agreements provide that the Association can make that decision for the parties. For that purpose, the Association maintains a panel of mediators to assist members in dispute resolution by mediation.

To the right is a list of Franchise Association approved mediators. Click on a mediator’s name on the right to find out more.

" 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

" 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

" 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

" 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

" 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

" 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

" 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

" 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

" 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)

" 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 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

" 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 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

" 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)

" 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

" 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

" 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

" 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

" 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

" 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

" 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

" 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)

" 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

" 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)