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Australian franchisor Refund Home Loans joins the growing list of franchisors entering voluntary administration (bankruptcy). However, many of its disappointed franchisees can not wait to take their chances with a new franchisor, whomever that might be.
With the flamboyant and controversial Wayne Ormond at the helm the brand won numerous awards amidst a growing chorus of franchisee complaints and ACCC intervention. Refund Home Loans comes with the Franchise Council of Australia seal of approval.
The announcement comes just 18 months after the Australian Competition and Consumer Commission slammed the company and Ormond, after he admitted making false and misleading statements to franchisees about an agreement with the ACCC itself. SmartCompany
While competitors will be interested in the brand franchisees are being asked to build the value of the brand again by joining in the bidding.
Refund Home Loans announced to franchisees on Wednesday that it had entered voluntary administration due to $2.5m in debt. The company's communications consultant Peter Sawyer has told Australian BrokerNewsthat franchisees may launch a bid to buy the business. Australian Broker News
Franchisor Wayne Ormond in a media release to BMM considered himself invincible on the opening of his 300th franchise;
We have come a long way in a little over five years in what is a very competitive market and we do not intend to relax our efforts in the next five years. Blue MauMau
The most likely result is that a competitor will take over the brand. Franchisees will be looking at the unknown of possible reimage and upgrade expenses as they head into a new 'take it or take it' franchise contract.