Mr Green boss ditches brother

The owner of the Mr Green franchise group has ditched his brother after numerous problems with franchisees.

Christchurch businessman Julian Smith, through his company Herbert Smith, owns the Mr Green franchise rights for New Zealand and granted his brother Dean Richard Smith the right to sell Mr Green cleaning franchises as a regional franchisee.

Dean Smith has been at the centre of allegations he let down franchisees in Christchurch, Wel- lington and Rotorua by taking money for franchises but not delivering on promised customers, training and business.

A Disputes Tribunal judgement in July last year ordered Dean Smith to pay $15,000 to franchise buyer A and Z Cleaners Ltd, owned by Wellington shopkeeper Luv Kumar Khattar.

In his latest foray in April, Dean Smith sold a Rotorua franchise to couple Savio and Franklin Laban for $15,000 without providing the promised customers.

Julian Smith, who in March was still standing by his brother, has ditched him in a letter on the Mr Green website.

In the letter, Julian Smith says his brother breached his obligations as a regional Mr Green franchise owner because he sold franchises outside the proper process and without paying him the required fees. He revealed Dean Smith sold five franchises to Christchurch residents last year.

‘‘Dean negotiated to purchase a cleaning company to provide work for the new franchisees but this deal never eventuated and he was unable to repay the money. I was first made aware of the sales late last year when I was contacted by one of these franchisees who had concerns.’’

Julian Smith said the Christchurch franchisees were repaid by him and he had also repaid the Labans.

‘‘Unfortunately, the unauthorised actions of [Dean] have caused damage to a well-known, wellrespected, and long-serving brand. We have been accused of being scammers and the media have unfairly painted a picture of a franchise system that is not what it purports to be.

‘‘This is far from the truth. We are all horrified with what Dean has done. No other owner would even consider doing this to any prospective franchisee who has entrusted Mr Green with providing them with an income to support themselves and their families.

‘‘Dean’s licence to operate as a Mr Green regional owner has been terminated and we hope that this incident has been closed.’’

Dean Smith said he did not know about the Disputes Tribunal matter because he was not notified and hoped to sort things out with his brother.