Australian Government Acts against Franchisor Mailpost and Peter Kritas

[Franchise Sceptic]

This is a big story that is starting to break.

More than $20 million dollars has been taken. The business is on the verge of collapse - disgruntled franchisees and investors everywhere and now the Australian Govt is acting.

What makes this story potentially even bigger is that the Founder who is under investigation - Peter Kritas - has announced that he intends to expand "his successful concept" overseas.


The below is on Blue Mau Mau


Australian Government Goes After Mailpost


Member | Eyebalz | Dec 24 | legal
The Australian government has instituted proceedings against print franchisor Mailpost and its leader Peter Kritas for fraud and deception in selling franchises. The ACCC thinks Mailpost deceived print shop owners and buyers by claiming that they didn't need franchise disclosure documents since they were just licensees, and not covered under franchise code.

[MailPost Postie]

Hundreds of small investors in this doggy business lost about A$15,000 ~ A$30,000 in average. MailPost lounched business on 28/04/2008 and went bankrupt on Jan 2010 with only A$23,000 cash in trust account. Millions of dollars disappeared. What a scam! ACCC & ASIC really should do something about it to recover our money. After 2 years, we've got nothing but tears & anger.

[franchiseinsider]

Agreed.  ACCC pursued Allphones and the Franchisees got $3 Million from it.  The story broke today - yet the Mailpost Franchisees seemingly were not involved in the action against Mailpost along with the ACCC? 

[rachel12]

Hi, I am new here and had no knowledge about ACCC and about its pursued Allphones. Thanks for sharing. I am gonna search about it and will publish in my magazine. Can you give me more information about it? I am working with an NGO and I always searching about such topics. Thanks in advance.

[AdamC]

I know this is somewhat of an old thread but I'm very interested in any follow up to this!

Has the ACCC made further legislative changes?

[FuwaFuwaUsagi]

If you go over to Bitch-Moan-Moan (BlueMauMau) they have several Aussie franchise types who are all into the Gubermint protecting idiots from their own stupidity.  Ask Ray Borradale, he is nice enough chap, even if he is from a penal colony  : )  My guess is he will know.  Michael Webster, who comes here on occasion, would also know, as the Good Barrister is an encyclopedia of knowledge about the state of franchising world wide.   

Good luck...

[michael webster]

There has been a change in who is running the ACCC, but no legislative changes at the Federal level.  Some at the state level.