The Franchise Association of New Zealand 's submission has been lodged with the Ministry but we anticipate their response will not be forthcoming for several months. A full copy of the submission will, in due course, be available on the Ministry's web site.
The FANZ submission to MED can be summarised as follows:
1. FANZ believes that the current system of self-regulation is the best option for the franchise sector. It is cost-effective and the best means of ensuring a sound and progressive franchise sector.
2. The FANZ Code of Practice is strongly supported by the Board of FANZ and its members. It is regarded as a good model for pre-contract protection of potential franchisees and during the life of a franchise term.
3. If franchise-specific legislation is to be introduced, FANZ could support proposals based on and limited to the FANZ Code of Practice requirements of:
a. Mandatory pre-contract disclosure.
b. Post-contract ‘cooling-off’ periods.
c. Compulsory mediation.
d. A requirement for potential franchisees to seek or be given the opportunity to seek professional advice pre-contract.
4. Any franchise-specific legislation needs to provide an effective means of setting minimum standards of practice without creating costly and complex documentation requirements. The Australian Code is not a good model for New Zealand.
5. FANZ strongly endorses any proposals for education in the area of franchising. Education is seen as providing potential franchises with the best means of understanding both franchising and the investment opportunities made available to them by the sector.2008 – Another Year of Growth for the Association.
The continued growth of the Association reflects well on the strength of the Franchise community and the fact that companies willingly adopt "best practice" by subjecting themselves to independent scrutiny of their documentation against the Association's Codes.