Franchise Scam in New Zealand Continues
The New Zealand Minister wades into $3m scam row
"Ethnic Affairs Minister Chris Carter says Green Acres has treated victims of a scam in a "devious" and "ruthless" way.Victims of a $3-$5 million ironing franchise scam are looking at taking legal action against Green Acres, the parent company involved. About 200 people bought non-existent ironing franchises from former "master franchisee" Keith Lapham.
The mainly Chinese and Indian immigrants paid up to $25,000 each for the bogus franchises, some getting into debt.
Seven members of Franchise Watch, the group set up to represent the victims, met Mr Carter at his Te Atatu electorate office on Saturday, The New Zealand Herald reported today."
Could Keith Lapham have sold some 200 franchises without the franchisor Green Acres being aware of it?
Hard to imagine in a world in which franchisees had to be given Disclosure Documents - could that be coming for New Zealand?
And what of the franchisor's response to this fraud?
"Green Acres chief executive Andrew Chisholm earlier this month ruled out financial compensation.However, the company offered a rescue package under which victims were offered a new franchise if they could meet the company's qualifying criteria.
But the offer would require those who took it up to pay for uniforms and a vehicle which would have to display the company's logo."
