STATEMENT FROM INTEGRITY FRANCHISING PTY LTD REGARDING SANTECH PTY LTD– FORMERLY INTEGRITY NEW HOMES COFFS COAST PTY LTD

Integrity Franchising Pty Ltd (Integrity Franchising) is the former franchisor for Santech Pty Ltd (Santech) which was at one time trading as Integrity New Homes Coffs Coast.

We are deeply concerned by the failure of Santech not to complete homes for some clients and also not to pay outstanding creditors (noting we are also owed a substantial sum). Integrity Franchising worked with Santech for some time to provide suggestions for operations but ultimately had no alternative but to terminate the franchise agreement on 16.7.2018 (after first issuing a breach notice to rectify). Despite this termination a franchisor company director continued to support the Santech directors after the termination, by meeting with them and trying to guide them with addressing issues their business faced. We have moved to appoint a new franchisee to take over several sales to ensure a good outcome for some of the existing clients and have waived royalties on a job.

It is relevant to note that the Santech directors are experienced in the building industry. One of the directors has previously owned and operated a building company and another director was a successful new home sales consultant in Coffs Harbour for around three years before acquiring the franchise.

The franchisor has made every effort allowed for under the Franchise Agreement, and by Santech’s directors, to assist Santech but the day-to-day running, management and decisions surrounding the business rest solely with the Santech’s directors. We did point out areas of concern in business operations when we became aware of them but we did/do not have the contractual/legal nor building licensing regulations ability, to become directly involved in addressing matters for Santech in a “hands-on” fashion. The franchisor’s role is more that of a consultant, providing training, support, software systems and suggestions for business but does not enact nor make decisions for the franchisee. It is a bit like a new car. The manufacturer builds the vehicle but the owner is responsible for how the car is driven. The franchisee remains an independent company using its own building licence to build new homes. 

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