A group of Aussie home loans franchisees are disputing the franchisor’s collection and distribution of inbound customer leads, suggesting it has breached the franchise agreement, according to The Australian.
The masthead claims it has seen an email sent by the Aussie Franchisee Association to its members in which the association points to a failure by the Lendi Group, which merged with Aussie in 2021, to collect postcode information from customers. This has led to a discretionary distribution of leads to franchisees rather than geographical allocation, it said.
However, in a statement issued to Franchise Executives, an Aussie spokesperson rejected the claims. “Postcodes have not been removed, this is false. Our extensive investment in technology in consultation with all brokers means our booking system is now easier to generate more leads.
“This positive change for our broker network has resulted in a 3x increase in company generated leads.”
The Australian reported the franchisee association, which represents at least half of the 230 stores, has approached Lendi CEO David Hyman over the issue.
The association was reportedly told by Lendi its members faced breach notices if they continued to discuss the issue.
Franchise Executives contacted Aussie for comment on this allegation and received a general response.
Aussie’s spokesperson emphasised that franchisee group discussions needed to be “constructive”.
“We encourage open feedback in forums, including actively engaging in business forums, including the Aussie Franchise Council, Signature Diamond Brokers, and Aussie Franchise Association, which encourages constructive ongoing dialogue and improvement.”
The business said it is investing heavily in supporting the Aussie brand as the face of the company.
“However, we expect franchisees to continue to meet their ongoing professional and contractual obligations and use the extensive forums available across our network,” the statement concluded.
