Five former Mr Video franchisees in KwaZulu-Natal want to stop the company from opening up more outlets, and they are preparing legal action in a bid to prove that the company’s franchise agreement is designed to make franchisees fail.
The group, which wishes to remain anonymous for now, identified 10 issues which it said had contributed to the collapse of the businesses. It said more than half of the 17 franchisees in KwaZulu-Natal had defranchised or closed shop, mostly within a year.
They said the franchise agreement did not protect the franchisee. Other concerns were market research, training, support and shop design.
Andre Grobler, Mr Video’s chief operating officer, said the firm was confident that its agreement was properly structured and would be able to address all the issues raised.
One entrepreneur said: “When you ask for a copy of the contract, you are always told to secure a bank loan and the lease agreement first. Since most of us are inexperienced when we start the businesses and are excited, we are never really suspicious because Mr Video looks like a reputable franchise.” Read more.
danakeith on July 4th, 2008 at 7:19 am
there’s a lot like it around here, people loves to sing with it, think this is a good business, it can entertain people.