Franchise Sector In NZ A “Wild West”

TVNZ:

A significant number of people who have bought franchise businesses over the last 20 years have apparently ended up in court claming they did not get what they thought they were buying.
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This is according to an extensive new study on franchise law by Auckland University’s Business School.

Senior lecturer Gehan Gunasekara says the largely unregulated franchise sector in New Zealand operates like the “Wild West”.

This is despite a review of New Zealand’s franchising regulations of the Ministry of Economic Development that found that the franchise system is robust.

Commerce Minister Simon Power last week said the results of the review found the combination of generic business law and voluntary self-regulation of the sector by the Franchise Association of New Zealand (FANZ) to be the most appropriate for New Zealand. Full article.

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