Optus could face court action for misleading and deceptive conduct in its negotiations with franchisees as it looks to bring stores under its own control to strengthen its retail brand experience, but denies accusations of wrong-doing.
The network has already bought back 103 franchise stores, which account for around 40% of franchise operations. Optus wants to bring its franchise stores back under its own control. Its stated reasoning is that by doing so it can ensure consistent customer experience.
The move is part of telco's ongoing transformation plan and began 12 months ago. Optus has hit a stumbling block with franchisee Stephan Cameron, who owns eight Optus franchise stores and is also a former senior marketer for the network.
Cameron is considering bringing court action alleging Optus is undercutting his franchise business by marketing directly to his customers and skimming retail commissions for customers signed up by the franchise, according to an affidavit seen by The Australian.
Optus has made a number of offers to buy back Cameron’s franchise stores, which have been rejected on the grounds that the offers undervalue the businesses. The network denies it has acted deceptively and is awaiting the judges decision on its next move.
An Optus spokesperson said: “Over the last 18 months, Optus has restructured its retail footprint to create a better experience for its customers. As part of this process we’ve successfully negotiated buy-back agreements with franchisees for more than 100 ‘yes’ Optus stores. Optus denies claims of any wrong doing during its relationship with this franchisee.”
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