Franchisees spur Taste probe
National Consumer Commission to investigate firm after complaints of failing to honour contractual obligations
The National Consumer Commission (NCC) is investigating franchise manager Taste for breaches of its agreements with franchisees across the country. The commission had sent the Starbucks and Domino’s Pizza franchisor a notice that it was being investigated signed by NCC commissioner, Ebrahim Mohamed on May 26. At the time, the company’s share went into freefall of 29.4%. On Monday, it settled at R1.45. The notice did not provide any details. "The NCC is investigating Taste Holdings as a franchisor," said spokesman Trevor Hattingh. "We have received about seven complaints from different franchisees, alleging the franchisor is not honouring its contractual obligations in terms of their franchise agreement." Among the complaints the NCC had received was that Taste had negotiated franchise agreements that were valid for 10 years, but neglected to negotiate property leases for the same period, leaving franchisees without trading premises when leases expired. "[Franchisees] are [still] exp...
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