The Kiwikrane business model requires that high quality stock is used in our machines. We have an obligation to provide a suitable range of prizes for you. We require you to only purchase your prizes through us off the official website. Franchisees purchasing off other suppliers undermine our revenue base which supports you, and any discovery of this may result in immediate termination.

All stock, machines including lollies and chocolates must be purchased via the Kiwikrane website. You should have a personalized login and password. If you require assistance with your login send an email office@kiwikrane.co.nz

The reasons for purchasing off the franchisor are:

1. Firstly it ensures high standards among the group are maintained. We require only quality approved products to be used in Kiwikrane machines. Unless we have direct control over this, not only could cheap and unattractive prizes be used, but also prizes that are entirely unsuitable for the claw to pick up may find their way into machines.
2. Secondly it means the group buying power is maintained and grows – this allows us to get great deals with suppliers and licensors that single operators can't. The strength of the group is only maintained by everyone purchasing centrally. That is a huge advantage for us all.
3. Thirdly it is part of our business model by providing income to the franchisor. This is primarily how we pay for all the support and service we give – the franchise fee contributes but does not come close to covering our costs. Profit from prize sales pays for staff wages, product development, graphics design, software, management, franchise association fees, etc. This income allows us to keep organizing, researching and developing new and exciting products. This is how we make a living – by supporting franchisees and being paid in franchise fees and profit on prize sales. If franchisees didn’t purchase from the website it wouldn’t be possible for us to do what we do. Time and effort is required to develop products for Kiwikraners. Money is required to buy, warehouse, pack and dispatch them - and give credit accounts.

Therefore we do require you as part of your franchise agreement to purchase off us. If we find that you aren’t doing this it is considered a serious breach of the franchise agreement and it will be acted on.

While everyone has agreed to this in their franchise agreement I would like to address a couple of common possible concerns that you may have:

Firstly price - if you think you can find the same item in commercially viable, suitably varied and long term supply – not a one off discount or end of line in small quantities - please let us know privately and we will research it and address it – we must remain commercially competitive if we are to ask you to buy off us exclusively. Remember that the price of a prize only makes a difference to your desired win frequency not your percentage profit. What drives revenue and consequently profit on crane machines is having something desirable that people want to win – so within reason it’s about what you put in machines, not how cheaply you can get it. Your focus should be on getting great sites and putting the attractive prizes you can get into them – while we focus on developing and supplying the prizes. That’s the synergy of the system. We ask that you don't begrudge us making a profit on prizes as our ability to stay in business maintains the value of your business. If we were to go out of business you would not have a franchise you could sell.

Secondly your opinion on the job we do - If you are concerned with the stock not being good enough or varied enough, or running out – this is a constantly changing situation which is open to interpretation by different people. One person might think the range is great – another will disagree. If you are unhappy please contact us privately and discuss and we will try to help or make suggestions – we do try our hardest but it is very difficult to satisfy everyone’s expectations all of the time. We need to make buying decisions based on a lot of commercial factors which you may not be aware of. However - If you remain unhappy for long periods of time with the prize supply and the obligation to buy it off us – then you are unhappy with the franchise at its most basic level and we may not have a solution. This may sound harsh but the best option to save long term unhappiness may be that you sell your business and do something else. Having said that we do hope that you enjoy being part of Kiwikrane, and now have a better understanding of the importance of buying stock via the website only.