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Franchisee bid a prime Refund contender

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Australian Broker | 15 Mar 2012, 04:00 AM Agree 0
A favoured bid for Refund Home Loans under a newly-incorporated company, Independent Mortgage Professionals, has been revealed to be that of a franchisee group headed by Sydney-based Nico Wiering
  • ex-refund franchisee | 14 Mar 2012, 12:52 PM Agree 0
    I would like to add that this IMP is only set up to assist the Franchisee's that have trails, it in no way supports the many people whom purchased franchises in the months leading up to the administration. These franchisees are in effect out of pocket up to 75K, one would asumme there would not be many of the existing franchisee's that have trails adding upto that amount of money. Would have been nice to have rated a mention, from my understanding Nico Weiring was not one of RHL top mortgage writers, it would appear that he is looking to set himself up as CEO of a company with only two years experience.
  • ozboy | 14 Mar 2012, 01:52 PM Agree 0
    If you're a franchisee I think the writing has been on the wall from the start, you are more like a football getting kicked from post to post with no one really caring about you just what they can get. Feel sorry for you guys having to learn a business lesson the hard way and not sure that any of the solutions offered by the administrator will help you. Sounds like another GAL gone but not forgotten.
  • Refund Broker | 14 Mar 2012, 02:19 PM Agree 0
    What you've got to understand is that businesses looking to purchase Refund's Assets are making commercial decisions. There is no way there is going to be any commercial value in somehow compensating people for money spent on purchasing a franchise. That money is gone, whether we gave it to Refund 6 months ago or 6 years ago. Be thankful you have only lost $75k and not $75k plus the proceeds of many years hard work which is the risk established franchisees face if a sale does not eventuate.
    Back to the realities of the Sale, and why it benefits some more than others: The value of the business derives from taking over Refund's right to a share of commissions and it's agreements with active brokers. That is just the reality. There's no point blaming the buyer.
  • Positive Broker | 14 Mar 2012, 03:14 PM Agree 0
    I never agreed with the business model but it is such a shame to see hardworking brokers who no doubt had a dream to be part of a great industry have been well and truly screwed. They dont have any option other than to start again. Hopefully we are all a little wiser after this. I am certainly looking at my aggregator and wondering if they are safe. I think they are but how can I be sure!
  • Country Broker | 15 Mar 2012, 11:04 AM Agree 0
    All of this shows two things
    A; The refunds model was not viable, you cannot give away income and survive in the LONG term , it may need a change of name.
    B; If you are a broker DO NOT pay a franchise fee, and instead deal with an aggregator who is well established, with a healthy reputation and a history of paying up fronts and trailers on time every time , if this means dealing with an aggregator fully owned or partly owned by a big 4 bank so be it. There are othe suitable alternatives loke AFG as well , for the record i am a PLAN broker, and happy to be one.
  • Successful Broker | 15 Mar 2012, 11:07 AM Agree 0
    The model clearly undermines the value proposition of the broker and the industry. Do you see other professionals rebating their fees back to their clients like Financial Planners, Solicitors, Accountatns? Clearly a Franchise fee gathering model. I feel for the effected refund brokers placing their trust and hard earned in the hands of greed. I think its time brokers controlled their own destiny which I have a business model for!
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