Mortgage Choice 'consulting' with franchisees
In a statement yesterday, building on the one sent out via the ASX two days earlier, listed mortgage broker firm Mortgage Choice said once more that it has been "consulting with its franchisees with a view to updating its remuneration model to increase franchisee remuneration and reduce franchisee income volatility."The company said that it "works closely with its franchisees to assist them in growing successful businesses ... [and] has policies in place to support any franchisee that requires additional support."This was in response to media reports of a building franchisee revolt, with talk of class action over allegations of business owners being locked into seven-day-working weeks for reduced commissions.Several paragraphs into its statement, Mortgage Choice said it "strongly refutes allegations in the media that its current model encourages poor behaviour or practices. The company has robust compliance processes and credit policy controls in place that franchisees are required to adhere to."Susan Mitchell, CEO of Mortgage Choice said: "Our franchisees are very diligent and want to do the right thing for their customers. We take any allegation of fraudulent behaviour extremely seriously and we have a very thorough and structured compliance regime in place. Mortgage Choice acknowledged "that the balance between services offered and remuneration provided needs adjusting .... [and], some months ago the company commenced a confidential and collaborative process to update the remuneration model, which has included numerous workshops across Australia with franchisees to consult on a new model, including reviewing more than 30 different remuneration structures, many submitted by franchisees."The company did not explain why this last point was not disclosed several months ago, nor why John Flavell, its previous CEO left so suddenly, effective 3 April, to be replaced by his (recalled) CFO.Mortgage Choice signed off by stating it is not subject to any legal action.