The country's largest franchise business has rejected
accusations it's been heavy-handed in its treatment of an Auckland
man.
Green Acres has terminated a commercial cleaning agreement with
Rodrigo Calquin, after a dispute over unpaid royalties.
But his lawyer says the company's being bloody-minded.
Calquin came to New Zealand from Chile, looking for a better
life.
But he is regretting his decision - six months ago - to invest $27,000 in a Green Acres commercial cleaning franchise.
"He is stressed out of his tree, and it's a terrible situation to be in," says Stewart Germann, franchise lawyer.
Germann is a franchise lawyer engaged in a bitter and escalating dispute with Green Acres.
He got involved after Green Acres wrote to Calquin demanding unpaid royalties worth almost $3000.
The letter threatened Calquin with court action, a Baycorp credit listing, legal action to terminate the franchise agreement and a public notice in newspapers.
"You cant do that...That is like threatening with menaces," says Germann, "In my opinion that's going way too far and I've never ever seen that in a letter like this".
Calquin says he is distressed by the threat to his investment and his reputation and feels very bad and basically destroyed.
But Green Acres says the heavy letter reflects frustration over the unpaid debt.
"Rodrigo has breached the most fundamental of those obligations by not paying us a royalty for over five months. He's been supplied with the work, but he hasn't paid any royalties," says Andrew Chisholm, Green Acres chief executive.
Calquin says he did not pay royalties because he didn't get the guaranteed weekly turnover of a $1000.
He admits turning down some jobs, but says that was because of unsuitable hours or work outside the agreed zone.
Calquin says going outside Auckland meant for him paying extra fuel costs and extra time.
When Germann challenged the royalties demand, Green Acres responded by terminating Calquin's sub-franchise agreement and demanded a $10,000 termination fee.
"To the best of my knowledge, I've never seen a termination fee payable when a franchisor terminates," says Germann.
Green Acres says it's simply protecting its business.
"We spend a huge amount of money marketing the business, picking up the work, and then to have somebody that potentially just walks away with our clients is not a situation that we want to tolerate," says Chisholm
But one former cleaning client has expressed disgust at Green Acres' treatment of Calquin and both sides have now accused each other of unethical behaviour.
Germann says has a simple solution.
"Green Acres - great name, responsible brand I hope, they should just give his money back and let's get on with it".
If that doesn't happen, Calquin faces a potential loss of $40,000 for his failed Green Acres business.
