Alleged franchise fraud surfaces in Auckland

As a result of preliminary investigations, the government now intends to work with the New Zealand Franchise Association to ascertain whether there is a need to tighten the legal framework around franchising to minimise risks involved in franchise arrange

www.insideretailing.com.au
January 8, 2008

Alleged franchise fraud surfaces in Auckland

The Commerce Minister, Lianne Dalziel, has heard directly from victims of the alleged fraud involving the selling of bogus ironing franchises in the city.

As a result of preliminary investigations, the government now intends to work with the New Zealand Franchise Association to ascertain whether there is a need to tighten the legal framework around franchising to minimise risks involved in franchise arrangements.

Dalziel said the current case was a distressing issue for the victims.

"It would appear that most of the victims in this case are migrants, some with limited English and some who have used up all their savings to buy into the franchise.

"I have advised everyone involved to write down everything they can remember about their dealings with Keith Lapham and Green Acres and to gather all phone and email records as well as receipt books and other material," Dalziel said.

The alleged fraud, which came to light just before Christmas, is also being investigated by the Serious Fraud Office.


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