When Gold Brands Investments, owner of the Chesa Nyama fast-food franchise, listed on AltX 11 months ago, the share price plummeted 45% to end the first day of trading at R1.12 a share. It has barely recovered since. But this is only part of the problems making life difficult for Gold Brands, which is facing legal action from some franchisees and is itself suing a former investor. David Roberts, a lawyer at Roberts Incorporated who represents nine Chesa Nyama franchise owners, said this week he is building a class action against Gold Brands because he believes the group has not been transparent in its business dealings. "They have not complied with Regulation 3 of the Consumer Protection Act, which says that you need to provide prospective franchisees with a disclosure document that explains in detail what your margins are, what your working capital is going to be, what investments you will acquire and what your gross profit and what your projections are going to be," said Roberts. ...
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