Association unaware of franchisees going bust

They had asked Perbadanan Nasional to stop funding franchise businesses as it was not benefiting franchisees. They are worried they would go bust as they are being victimised and used as “baits” by franchisors to obtain government funding…The franchisees claimed they are in debt of between RM100,000 and RM450,000 as a result of being “victimised” by unfair practices of franchisors.

http://www.theedgemalaysia.com
September 11, 2009

Association unaware of franchisees going bust

KUALA LUMPUR: The Malaysian Franchise Association has not received any report or feedback on 30 franchisees which may go bankrupt as was reported in the media recently.

Chairman Datuk Mohd Nadzmi Mohd Salleh said the association was concerned about members and franchisees’ welfare.

“Nonetheless, we want to emphasise that the association did not receive any complaint from any franchisee who spoke at a media conference arranged by the Muslim Consumer Association of Malaysia recently,” he said in a statement.

The consumer association had said on Tuesday that the media conference was the last avenue to attract the attention of the authorities to look into the plight of the 30 former franchisees.

The franchisees are said to have reported their problems to their financier, Perbadanan Nasional Bhd, Malaysian Franchise Association and the ministry concerned but no action was taken.

One of the franchisees was told the Malaysian Franchise Association would help them only if they became members of the association.

Mohd Nadzmi said the association adopted an open door policy to be receptive to ideas, listen to problems and complaints from franchisees and franchisors, franchise consultants, franchise lawyers and would-be franchisees.

He said the association through its arbitration and welfare committee comprising qualified franchise lawyers are responsible for ensuring members’ welfare.

The committee would serve as an intermediary between franchisors and franchisees in helping to solve problems arising.

Currently, the association has 528 members comprising franchisors, franchisees, franchise consultants, franchise lawyers, would-be franchisees and related organisations.

On the call by franchisees to Perbadanan Nasional Bhd to stop financing franchise businesses, Mohd Nadzmi said it was too early to take such a decision.

They had asked Perbadanan Nasional to stop funding franchise businesses as it was not benefiting franchisees.

They are worried they would go bust as they are being victimised and used as “baits” by franchisors to obtain government funding.

Former franchisees of Marrybrown, Jukebox, Watershop, VV Shop, Camps Apparel, Sinma and Kwikstop hoped the authorities would look into their grouses and find an amicable solution.

The franchisees claimed they are in debt of between RM100,000 and RM450,000 as a result of being “victimised” by unfair practices of franchisors. — Bernama

http://www.theedgemalaysia.com/index.php?option=com_content&task=view&id=149113&Itemid=79


Brought to you by WikidFranchise.org

Risks: Bankruptcy, Call for franchise law, Churning (serial reselling), Debt traps, Don’t buy any franchise?, Forced ordering, Franchisor association public relations machine, Franchisor association still maintains fiction of representing franchisees, Franchisor association not trusted by franchisees, Franchisor association public relations machine, No franchisor support , Refuses to accept complaint, Government guaranteed loan program very attractive to fraud, Government guaranteed loans, No program evaluation being done by government, Trade association fronts and defends best and worst franchisors, Trade association membership a bogus "Good Housekeeping Seal of Approval", Predatory franchise lending, Sincerity, Malaysia, 200900911 Association unaware

Unless otherwise stated, the content of this page is licensed under Creative Commons Attribution-ShareAlike 3.0 License