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New Zealand Considers ' and Rejects ' Franchise Regulation

By Rupert M. Barkoff

While the United States shares a common language and common law background with the United Kingdom and New Zealand, those countries have gone in a different direction in regulation of franchising. A report by New Zealand's Ministry of Economic Development, issued in the past year, affirms the hands-off approach of New Zealand, modeled on the system in the United Kingdom, even as the country seeks to protect prospective franchisees.

The United Kingdom has no law that requires disclosure or registration of franchises being offered for sale, and to this author's knowledge, there have been no serious attempts to enact such legislation. Does this mean that franchising has not had its issues in the business community in that country? Certainly not.

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