A review of New Zealand’s franchising regulations has found that the system is robust and adequately meets the demands of the industry, Commerce Minister Simon Power said today.

"The Review of Franchising Regulation found that the current arrangement of generic business law and the voluntary self-regulation of the sector by the Franchise Association of New Zealand (FANZ) is the most appropriate for New Zealand," Mr Power says.

"We have robust and effective business legal frameworks, and the activities of FANZ can add an extra level of protection for those who want it.

"Given the small size of our economy, there is not enough evidence to indicate that specific regulation of franchise would result in significant benefits that outweigh additional compliance costs."

A review of franchising regulation was initiated last year after reports of alleged fraud involving franchises. The public was consulted and 33 submissions were received. 

The review highlighted the need for people contemplating owning a franchise to research the opportunities thoroughly, and to take appropriate professional advice.

The Cabinet paper outlining the findings, along with other documents associated with the review, can be found on the Ministry of Economic Development website:

http://www.med.govt.nz/templates/MultipageDocumentPage____40956.aspx