Wizard Franchisees To Sue Aussie Home Loans And GE Money


Angry Wizard franchisees are gearing up for legal action against their new owner, Aussie Home Loans, and GE Money, the finance giant that sold them to Aussie last year.

At least 35 Wizard branches are consulting top law firm Maurice Blackburn for advice on suing GE and/or Aussie for compensation and to overturn what they regard as unfair terms forced on them during the sale.

Wizard franchisees signed new three-year and five-year agreements as recently as December last year, but last month they were told that they had until April 28 to sign up with Aussie, otherwise their agreements would be terminated.

They were also told that unless they signed with Aussie, they would be subject to a “non-compete” clause that would stop them from doing any business for 12 months.

“We have not had enough time to make other arrangements,” said one franchisee.

“I could have tried to get another franchise up and running with, say, Mortgage Choice or another large broker. But now I’m being told I can’t do any business for 12 months, anyway.”

Continue reading.

Leave a Comment

Your email address will not be published. Required fields are marked *