'I wouldn't buy Ormond a cup of coffee'

by Adam Smith05 Dec 2011

A Refund franchisee has said the company's brokers are not bitter about their situation, though they wouldn't "buy Wayne Ormond a cup of coffee".

The franchisee, who wished to remain anonymous, said the mood among the company's brokers is largely positive.

"Brokers are pretty positive people, so we're thinking that's behind us, let's go forward. Most are leaving Refund," he said.

The franchisee said most brokers are not holding out for a sale of the business, but are instead choosing to forge on elsewhere. He commented that the brokers who are "sitting around" as the administration process plays out are merely waiting for offers from potential buyers of the business.

"They've breached our contract, so we can get out whenever we want. Most people are looking for a new home," he said.

Trail commissions are not proving a major concern either, he said.

"It's gone. We're all pretty much sure of that. There are some who brought a book into the business and are looking to try to recover it. There are some with larger trails and they're looking at ways to get that back, but most of us have got smaller trails and it's not worth worrying about getting it back," the broker said.

Bitterness and negativity are also not a major factor in the franchise network. The franchisee commented that most brokers are merely looking to put the business behind them, rather than dwelling on negativity toward the business or founder Wayne Ormond.

"We're not going to give him the time of day or anything, but everyone is of the opinion that we need to get back on track and go forward," he said.

The broker also defended the Refund Home Loans business model, and claimed the client proposition could deliver brokers good business through referrals and satisfied clients. However, he commented that many franchisees would rather see the company put into liquidation than sold to another suitor.

"That would be the best outcome for us. If we turned around Monday morning and they said the company was being liquidated, that would be the best because then we could all just walk away."


  • by Dudded refunder 9/12/2011 12:30:13 PM

    Franchisees have to be proaactive, they need to do the sums and obtain real personal legal opinion for their individual situation, not just follow the loudest and most scared would be "leader" who is prepared to follow refund waiting for a sale and continue with their business hoping a new owner will ever recognise the terms of the current agreements.
    In all reality, the probability is that the change to agreements will be big if a buyer does come out of the thin air that seems to be the only type available in the office suits of SV Partners.
    I personally believe that someone will take over the trail book and manage it by offering a new agreement to brokers to come on board.
    It's time to think with you head , be brave and face up to what SV is doing to you behind your back, and get some real advice and move on. Sitting on your hands will not be helpful.

  • by Brian 9/12/2011 7:03:09 PM

    Refund brokers should just move & cut their losses. Unfortunately they have been dudded, especially those who brought afranchise in the past 18months, they were never going to get what they paid for.