There were scenes of jubilation and tears of joy on the steps of the Cape High Court on Wednesday when a group of Seven-11 franchisees celebrated a judgement effectively holding the mother corporation liable for about R50-million in claims.
”The judge ruled that a referee must be appointed within 15 days to establish exactly how much is owed,” said the attorney for the franchisees, Jacques Theron.
He said about 70 franchisees in the Western Cape had sued Seven-11 Corporation SA in respect of rebates, kickbacks, discounts and other benefits that were promised but not delivered.
Theron described the case as a ”landmark case” for the franchise industry in South Africa.
”It is a victory for the small man, the investor who wants to make his own living by using a logo or brand,” said Theron on the steps of the court.
He said they would study the 29-page written judgement, which was handed down by Acting Judge Derek Mitchell, before possibly taking it up with Metro Cash and Carry, which had taken over the Seven-11 stable.
Theron said if the defendant, Seven-11’s George Hadjidakis, wanted to appeal the judgement, they would ask for security of costs of at least R500 000, given the fact that Seven-11 had been liquidated before.
Meanwhile, the plaintiff, Herman Fouche, said he was glad it was over.
”I’m glad, not just for myself, but for the guys out there that lost everything and are now on the streets … if we had lost this one [the case], it would have been a disaster for the franchisees,” he said.
Fouche said the case had been going on for the past three years.
He said he was considered a ”model” franchisee in the five years he had been with Seven-11, before becoming aware of ”irregularities” and joining the side of the ”rebels”.
He described Hadjidakis as a good businessman, but someone who had, somewhere along the line, let greed take over. — Sapa