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The Australian Deputy Commissioner of Taxation issued winding up proceedings against Rushlyn Pty Ltd for unpaid taxes on 26 November 2012. The case is before the Federal Court in Brisbane today. Rushlyn is the franchisor for the James Home Services group.
If the Court website is accurate, Rushlyn hasn’t filed any documents to support an alternative to winding up.
With the James Home Services head office up for lease and no new address to be found, the Australian Tax Office and Rushlyn appear to have failed in reaching a payment schedule acceptable to the ATO. It seems the reputation of rogue franchising may have finally caught up with the James Home Services franchisor who is apparently having difficulties selling anything even close to the numbers of franchises he needs to sell.
James Home Services have been pushing franchises for house cleaning, pet grooming, mowing, window cleaning, carpet cleaning, car detailing and pest control. It is reported that most of these brands have very low numbers of franchisees. The brand has been plagued by angry franchisees seeking both compensation and revenge.