Small Business Focus

Wanna be your own boss? Considering franchising? You may want to check this out…

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Many would-be entrepreneurs find the idea of franchising alluring.

Someone with a proven business concept creates a system and that can be sold to - and replicated by - multiple individuals.

Sounds great, but sometimes things go wrong.

The Money Show’s Bruce Whitfield interviewed franchisee Alicia Steyn, who made a number of allegations, for his small business feature.

Whitfield gave Nkukhubox (the franchisor) Managing Director Itumeleng Mpatlanyana a chance to respond to Steyn.

Whitfield also asked Phitidis to weigh in and to talk about franchising in general.

For more detail; listen to the interviews in the audio below (and/or scroll down for quotes from it).

I bought a franchise from Nkukhubox about a year ago. I paid the full amount of R741 200, and I never received a store. They just started avoiding us, never signed contracts and refused to refund us. We’ve exhausted all our funds with lawyers and we’re desperate for some help. They refuse to settle.

Alicia Steyn

Yes, we did receive the money… The contractor we initially had – Global Container Project – we paid them for three containers… he disappeared on us… that’s what caused the delay… In April Alicia’s store was 90% complete… that’s when we received a lawyer’s letter from her stating they’re cancelling the agreement…

Itumeleng Mpatlanyana, Nkukhubox

I dispute the assertion that we’re not communicating.

Itumeleng Mpatlanyana, Nkukhubox

When Alicia cancelled the contract we sent her a settlement offer… She refused…

Itumeleng Mpatlanyana, Nkukhubox

She’s had people threatening my life and my family!

Itumeleng Mpatlanyana, Nkukhubox

It sounds to me that he has been overambitious in how he went to market.

Pavlo Phitids, Aurik Business Accelerator

Don’t believe anything a franchisor tells you!

Pavlo Phitids, Aurik Business Accelerator

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