Accreditation for Franchisee businesses

A business is considered a franchisee employer if:

• It has bought the right to use a pre-existing business system authorised by a third party, and
  
• It uses a brand, trademark, advertising, marketing channels, or a commercial symbol owned by that third party, and
  
• that third party business controls certain activities or structures within their business as set out within an agreement, operational guideline or a terms and conditions document. These activities or structures may cover at least one or all of the following features:
  • continuing financial performance or reporting obligations to the third party
    
  • paying the third party a fee, or part of the profits for the rights to use a brand or name
    
  • control over where the business can source goods and services or how to set up or run their business, or
    
  • restricted ability to refuse requests by the third party, raise concerns or complaints regarding the third party, or lack of ability to easily exit or terminate the agreement
• Franchise businesses must have been operating for at least 12 months and evidence that at least 15% of their workforce are New Zealand citizens or residents in full time employment.