NZ Post Revises Kiwibank Offer For Franchisees

New Zealand Post Revises Kiwibank Offer For Franchisees

New Zealand Post announced today it had revised its offer to franchisees by covering the capital costs of fitting out shops to include a Kiwibank branch into their existing business.

Chief Executive Elmar Toime said the revised offer would retain the logistical and financial benefits for New Zealand Post of a continuous rollout of branches and at the same time eliminate uncertainty for franchisees over the investment of capital.

Under the original offer New Zealand Post shared the cost of fitting out branches with franchisees by providing capital through a five-year interest free loan of up to $12,500 a franchise.

Mr Toime said the revised offer would cost up to $2.125 million and would be met from within the existing budget for Kiwibank without affecting the business case.

"In an ideal world, New Zealand Post would have had more time to work through issues with individual franchisees. But it is no small task to establish a retail bank for all New Zealanders. The logistics and timelines are challenging.

"While we have received strong support for the Kiwibank concept from virtually all franchisees, we have also had feedback that some are uncertain over the risk associated with committing capital to the venture.

"The revised offer is a good solution for both New Zealand Post and the franchisees. It addresses New Zealand Post's desire to capture the benefits of a continuous rollout of Kiwibank branches while at the same time reducing risk and uncertainty for franchisees.

"As it is tied to the opportunity for New Zealand Post to capture the benefits of a continuous rollout, the offer cannot remain open to franchisees indefinitely. The offer is open for the next few weeks, after which time the justification for New Zealand Post making the offer may no longer exist."

Under the revised offer, New Zealand Post will pay for all capital expenditure required for the installation of Kiwibank and grant a licence to franchisees to operate it. New Zealand Post will retain ownership of the Kiwibank fittings.

Franchisees were advised of the offer by mail this morning. The revised offer will also be available to franchisees who have already signed agreements.

ENDS

For further information: Simon Taylor, Acting National Communications Manager 04 496 4015

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