This publication provides you with the fundamentals for franchising your New Zealand business, including set up, branding and management.<\/p>\n <\/div>\n \n\nDownload Now<\/a> <\/section>\n <\/div>\n\n\n\n\n The revised FANZ Code introduces several updates. We explore these below.<\/p>\n\n\n\n The standards of conduct section has been amended by consolidating the Code of Ethics into the Code of Practice. In addition, there has been the inclusion of specific language, such as: <\/p>\n\n\n\n The FANZ Code now allows for electronic disclosure methods. Franchisors can provide the Code and disclosure documents<\/a> electronically. They can also do so via hyperlinks to the FANZ website. This offers more flexibility and reduces environmental impact.<\/p>\n\n\n\n The certification process has been updated to give prospective franchisees more autonomy. While still strongly recommended, franchisees now have the option to decline independent professional advice. This is provided they sign a statement acknowledging this decision.<\/p>\n\n\n\n The non-compliance section has been extensively revised, introducing a more structured complaints process. It includes provisions for confidentiality and expands the range of sanctions available to the FANZ Board. This allows for more nuanced responses to violations of the FANZ Code.<\/p>\n\n\n\n Financial disclosure requirements have been streamlined under the amendments. The new Code introduces a solvency certificate requirement, replacing more detailed financial disclosures. This change aims to provide meaningful information while reducing the administrative burden on franchisors.<\/p>\n\n\n\n Franchisors must now provide clear guidelines to franchisees on identifying as part of the franchise system. This can be included in the franchise agreement, or another document, such as the operations manual.<\/p>\n\n\n\n A new section has been added to the FANZ Code outlining transitional arrangements between the new Code being introduced and when it will come into force. This allows FANZ members a grace period to adapt to the new Code. FANZ members can reflect this by updating their agreements and documents accordingly. This ensures a smooth transition to the new requirements.<\/p>\n\n\n\n The FANZ Code came into force on 1 December 2024<\/strong>, with a transitional period until 1 April 2025<\/strong>. During this window:<\/p>\n\n\n\nChanges Coming into Effect<\/h2>\n\n\n\n
1. Enhanced Ethical Standards<\/h3>\n\n\n\n
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2. Electronic Disclosure<\/h3>\n\n\n\n
3. Revised Certification Requirements<\/h3>\n\n\n\n
4. Improved Complaints Handling<\/h3>\n\n\n\n
5. Simplified Financial Disclosure<\/h3>\n\n\n\n
6. Identification as a Franchisee<\/h3>\n\n\n\n
7. Introduction of Transitional Arrangements<\/h3>\n\n\n\n
Transitional Period<\/h2>\n\n\n\n
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\n Franchisor Toolkit New Zealand<\/div>\n
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