Public Discussion on David Reid Homes Franchise
I’ve been approached by a large group of David Reid Homes franchisees that allege the system is a disaster here in Australia as the franchisor expands into the US market. David Reid Homes Crumble
There seems to be no argument that the homes themselves are a brilliant product. But the Return On Investment appears to be a joke and the promised support is said to be non-existent. As you can imagine this is not a low cost entry franchise and my contacts to date would have to be considered to be astute business investors. The information already received suggests that the glitter of franchising a great product was confused with making money?
David Reid Homes has built a reputation that has earned building awards across the UK, New Zealand and Australia. However; reports of growing numbers of David Reid franchise collapses are not difficult to find.
One of the offshoots to franchise collapse in the building industry is that the poor little folk sub-contractors always get screwed. Builder Goes Bust
David Reid Homes is now looking for a new agent to operate its Hervey Bay business.
Donamic Enterprises director Mick Picton says the company went into voluntary administration because of a lack of support from David Reid Homes. Subbies Fuming
David Reid Homes franchise collapses and those on the verge are not limited to Queensland or Australia for that matter with research turning up similar disasters as far afield as New Zealand. South Auckland Franchise Collapses
Home investors, contractors and franchisees appear to be suffering in great numbers while David Reid Homes expands its operation. This seems to be just another franchise catastrophe that governments can and do ignore.
DRH Perth is now gone
The DRH saga captured here is a very interesting read. One that I wish I had seen prior to enagaging DRH Perth to build our new home in March 2012.
They went down in May 2013 and have walked away completely free of all responsibility leaving us (and possibly 10 other clients from what I have heard) out of pocket and struggling to get the project back on track, not to mention the dozens of subbies that have suffered as well
Clearly the DRH business model does not work and in our case the quality of the work was also a problem with ongoing short cuts and deviations from the design dwgs and several poor construction decisions
The word from the subbies was that they needed more competent supervison on the ground managing the contracts and less people in the Office
Potential Lawsuit or Group Class Action against DRH
Like so many other poor individuals out there I am an Ex DRH Franchisor. I am one of those poor bastards that got lied to and ripped off for hundreds of thousands of dollars!!!
I have just read the entire thread and it makes me speechless that some people can come on here and defend DRH and David Reid plus the two Australian Directors... They are ALL to blame.
What blows me away is I know all these people and dealt with them during my time with DRH. They are just as low as the man himself when they try to re-right a wrong or try to explain themselves or the DRH company!!!
I personally know some of the Franchisors that were let go and know about the one's that were pushed to save the Aust Directors asses and DR when they were all good buddies.
Why hasn't a mass class action law suit been brought against these people??? I would be more then happy to put my hand up and join in.
Why hasn't a lawyer got hold of this case and contacted all the old Ex DRH Franchisors about a law suit against the Directors and DRH... you can also included some Territory Directors for all the lies and BS they said as well!!!
Keeping it inline with the above I quote:
Erin Brockovich: Look, I don't know shit about shit but I know right from wrong!
Greetings from Ireland. I would happily join a class action but a word of warning. DR held his trust in the Cook Islands. I would imagine that this was done to keep any chance of litigation away from him personally. I have met Roy and Russ. In my opinion, good guys, like me and others that believed in a man that only thinks of himself and who unfortunately is a great, great salesman. When David Gried was in Ireland he tried to involve me in setting up a company/trust to enable him to pay zero tax.
Smart guy with smart advisors. Best way to deal with him is the old fashioned way.
Still happy to join a class action and I reckon Martin Pick in the UK, woyld joun up. A gentleman who was royally f**ked over and the last time I spoke to him...broke and broken.