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Log In / Register | Jul 16, 2018

Home Loan Franchisees Lose Own Home

In Australia, the Wizard Home Loans franchise was once an FCA award winning pet contributor.

WizardHere we see the not so unusual franchising circumstance where broken franchisees claim misrepresentation but in this instance, only after they were being kicked out of their own homes.

Franchise network Wizard Home Loans was sold to another FCA award winning pet contributor Aussie Home Loans by GE Money Australia and New Zealand in early 2009 leaving Wizard’s existing loans to be serviced by GE Money while franchisees frothed.

Wizard franchisees signed new three-year and five-year agreements as recently as December last year, but last month they were told that they had until April 28 to sign up with Aussie, otherwise their agreements would be terminated.  Sunday Telegraph

Quentin Lawrence and Rosie Feery-Lawrence’s Wizard troubles worsened when GE opted out and claim that GE had made ‘false promises and assurance’ regarding their Rockhampton franchise.

It was only as a result of the bailiff acting on his instructions (in March) which has finally goaded the defendants into action and prompted them to make the application.   Justice McMeekin said in his judgement against the franchisees.

In franchising if you close your eyes on the way out, just click your heels together and you might not be surprised when you open them again, if absolutely nothing has improved.

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