Dozens caught in franchise scam 

Dozens of New Zealanders face a bleak Christmas after being caught up in what appears to be a multi-million dollar fraud.

New Zealand's biggest franchise business, Green Acres, has gone to the police after one of its master franchisees signed up people for ironing work that does not exist.

Emotions overflowed as dozens of bewildered migrants met in downtown Auckland to discover why their dream business opportunity has gone up in smoke.

Many have borrowed money to pay up to $40,000 for a Green Acres ironing franchise that doesn't legally exist.

Green Acres has been mobbed by frustrated subcontractors and the company says it has got no idea how many people have possibly been duped.

"It's a wake-up call for us and certainly we will be investigating with all of our other master franchisees to ensure that this sort of thing can't happen again," says chief executive Andrew Chisholm, adding that they believe this is an isolated case.

The man behind the alleged scam is Keith Lapham who is no longer at his Auckland address in Mt Albert. His voice mail is not accepting any more messages because it is full. The message on his home office refers all inquiries to Green Acres head office.

Up to 200 unauthorised franchises may have been signed up over the past six months, raking in fees worth millions of dollars. Many believe Green Acres should have been doing more.

"We believe they had a responsibility on their part to be monitoring his activities more closely," one man told ONE News.

Documents seen by ONE News include letters pleading for payment of debts.

Subcontractors have formed an action group to pressure Green Acres and spokesman Ketan Trivedi says they want Green Acres to take responsibility.