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Franchise New Zealand | Spring 2026 | Year 35 Issue 03
All New Zealand businesses must comply with the Privacy Act 2020 (Act)
and the Information Privacy Principles (IPPs) when dealing with personal
information. An apparent failure to comply can prompt a complaint, which
may lead to legal consequences.
For franchisees, dealing with complaints can be complicated by the franchise
relationship. Responsibility may sit with the franchisee, the franchisor or
both. Mishandling a complaint can also damage the wider brand. Therefore,
knowing what to do in the event of a privacy complaint is crucial. Responsible
franchisors have a process in place and manuals or policies to deal with
privacy complaints.
Responding to privacy complaints
Most privacy complaints can be dealt with internally. While individuals can
bring their complaints to the Privacy Commissioner, they will normally be
referred back to the business in question. Therefore, franchisees should be
prepared to notify the franchisor and agree on how to respond to complaints.
The first step is to contact the complainant, acknowledge the concern and
establish the outcome sought. The business should then investigate whether
an IPP or another obligation has been breached. Finally, the business should
report back with the outcome and provide a response. Even where no
breach is discovered, an explanation, apology or other response may help to
preserve any customer relationship.
Complaint handling is especially important within a franchise network
because one incident can affect the reputation of the whole brand. A
franchise-wide policy, explaining how complaints are received, escalated,
investigated and resolved can support consistent responses across franchise
network locations. Careful documentation may also help to reveal recurring
issues across multiple franchisees that require attention.
Notifying privacy breaches
An investigation may reveal a notifiable privacy breach. A notifiable privacy
breach is a breach that has caused or is likely to cause serious harm to an
affected individual. If a breach is notifiable, the Privacy Commissioner and the
affected individuals (where they are not the complainant) must be notified.
The Act has specific obligations for notification, and failing to notify carries
a fine of up to $10,000. The Privacy Commissioner encourages notification
within 72 hours of identifying a notifiable privacy breach.
It may not always be clear whether the franchisee or franchisor bears
notification responsibility. If the information is held in a franchise-wide system
controlled by the franchisor, the franchisor may be responsible. However, if
franchisees maintain their own systems and hold the information that has
been breached, responsibility may rest with them, subject always to the
franchise agreement. In some cases, both entities may have obligations and
as the brand owner, the franchisor must always be aware.
Hot tips for franchisees
Key tips for franchise networks from Wynn Williams:
• understand your obligations under the Act and the IPPs;
• have a clear process for handling and escalating privacy complaints;
• promptly escalate any suspected privacy breach to the franchisor;
• check your franchise agreement, manual and policy for any specific
privacy, complaint handling
or breach notification
obligations;
• keep clear records of
complaints, investigations
and outcomes; and
• if you are unsure whether
a breach is notifiable or
who is responsible, seek
legal advice immediately
upon becoming aware of a
privacy breach.
Wynn Williams offers tips for franchisees
on dealing with privacy complaints
PRIVACY
COMPLAINTS
Running a Franchise
Wynn Williams
www.wynnwilliams.co.nz
Contact
Katrina Hammon
09 300 2647
021 221 8847
katrina.hammon@
wynnwilliams.co.nz
Advertiser Info
Craig.Steenson1@woolworths.co.nz
www.freshchoice.co.nz/about/franchise-opportunities/
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We’re FreshChoice—a proudly local bunch with a
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a major corporate brand to the heart of friendly Kiwi
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truly belong to the community. That’s why we’re
looking for passionate, driven entrepreneurs to join
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• MULTI-STORE OWNERSHIP: Scale your business with
our proven, multi-store operation systems.
• INTERGENERATIONAL SUCCESS: Create a lasting
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• GROWTH-FOCUSED BRAND: Stay ahead of the curve
with continuous retail innovation.
• LOCAL HEART, NATIONAL PRESENCE: Make a
community impact with the trust of a
household name.
• CUSTOMISED SUPPORT: Be in business for yourself,
but never by yourself.