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BRISBANE, Australia - Further marketing developments in the troubled Lenard's Chicken franchise appears to offer no joy to existing franchisees.
The ‘Lenard's Extra' concept has been repeatedly touted and denied at various times since 2004 depending on who was in the audience. Existing and past franchisees are suggesting this concept has been developed with renewed vigor as a desperate response to difficulties in selling franchises after years of damaging media exposure, constant complaints to the Australian Competition and Consumer Commission and Federal and State franchising Inquiries; and of course, murder charges against one master franchisee for the state of Western Australia.
The development of the respected IGA brand and network has been virtually trouble free and highly successful with consistent growth against trends not normally associated with independent operations.
With this marriage between Lenard's and IGA we see the door open for Lenard's to an entire nation of independent and existing operators who it is hoped will perform, individually, much greater due diligence than it appears was undertaken by Harry Rumpler, CEO of IGA Fresh.
Lenard's franchisees are suggesting that the IGA independent operators are considering a naive entry into a new world of behaviours in any franchise contract with Lenard Poulter [Lenard's Chicken]. Their primary concerns relate to both the IGA operators and to the existing network of franchisees where at least 30 are ‘available' now and usually for much less than the going price some years ago.
Will the focus on ‘Lenard's Extra' see a move away from anything resembling support of the ‘old' franchise model and deliver even greater financial burden to the existing franchisees?
Will Lenard's avoid disclosure requirements under the veil of a ‘new' franchise concept? They suggest that IGA operators will be in dire peril if they do not contact ex-Lenard's franchisees and undertake extreme due diligence as they are considering a marriage to the behaviours of Lenard Poulter.
If you believe the franchisees and the media; they claim this man is behind some of Australia's most brutal franchising and a long history of franchisee failure and turnover.
Could an IGA Fresh operator lose everything because a franchise within wasn't viable? If they were to read the contract they would appreciate that once Lenard's Extra is in, it won't be leaving no matter what level of financial pain it inflicts on the operation.
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