More Kiwi Franchise Fraud

20080225-green-power-nz.jpgMigrants cry foul over new franchise deal, Lincoln Tan

Green Power’s locked and unstaffed Birkenhead headquarters. Photo / Paul Estcourt

Police are investigating an alleged scam in which people, mainly Chinese immigrants, claim to have been sold non-existent franchise businesses.

It is believed as many as 30 people may have been conned in the latest case, involving commercial cleaning franchise company Green Power.

The Herald has spoken to six Chinese immigrants who each paid $20,000 or more to Green Power for their franchises, which guaranteed a weekly income of $1000.

Only a franchisor association could believe that registering systems and franchisees, mandatory mediation and voluntary disclosure is going to redeem their reputation.

It’s not that I mind corporations asking for what they want: That’s their job. Don’t get me wrong. I would do the same.

What makes even a fool despair is the regularity that governments “drop their drawers”, no matter how short-sighted and reckless the consequences.

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