Gilt wears thin for Gold Brands franchise holders
When Gold Brands Investments, owner of the Chesa Nyama fast-food franchise, listed on AltX 11 months ago, the share price plummeted 45% to end the first day of trading at R1.12 a share. It has barely recovered since.
Picture: Sunday Times
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But this is only part of the problems making life difficult for Gold Brands, which is facing legal action from some franchisees and is itself suing a former investor.
David Roberts, a lawyer at Roberts Incorporated who represents nine Chesa Nyama franchise owners, said this week he is building a class action against Gold Brands because he believes the group has not been transparent in its business dealings.
“They have not complied with Regulation 3 of the Consumer Protection Act, which says that you need to provide prospective franchisees with …