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“We bought a waffle franchise as a way to make extra money. We were hoping that over time we could turn it into a full-time business,” says Sanet.
When Absa financial adviser Pieter Myburgh and Abigail Makhubele, Absa National Business Development Manager for FMCG and Consumer Services, looked at the business, it was clear the couple could not realistically meet the figures required. In the contract agreement the franchisor took no responsibility for the validity of the numbers they had provided. Furthermore, the contract limited them a specific area which included only one market where they could operate. There were simply not enough venues for them to sell their waffles.
Although the couple were committed to the contract for several years, Myburgh and Makhubele assisted in writing a letter to the franchisor raising the list of issues and broken promises. The franchisor agreed to release them from their franchise agreement and the R5 000 monthly franchise fee. The couple are now in the process of selling the food truck to help settle the loan. The couple are fortunate that the franchisor did not go the legal route and incur further expenses.
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