That’s a war !

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poleć stronę: That’s a war !

2005-03-11

After August 4th, 2004 the brand hairdresser salon market in Poland will never be the same.

On the 4th of August the sign-board JLD of one of the flagship salons of Jean Louis David in the center of Krakow disappeared. The new franchisee installed a new sign-board of the competitive franchise company Camille Albane. Didn’t he exceed the limits of a fair competition? - That’s a war ! – says Jaromir Matonóg, general director of JLD.

There is no place for us

Wiesław Flis, the manager of CA, assumes that the reason for the slow market development of hairdresser salons is due to problems with localities – There are not many appropriate places for brand hairdresser salons – says Wiesław Flis. – He adds that good ones are these, where rich costumers come more often than once. Therefore, all franchise systems strongly compete in renting salesrooms.

In his opinion, brand salons are forced to competition by shopping malls which want to have one, at most two salons in different price categories. Customers rarely have the chance to see both salons, JLD and CA in one shopping mall. In the shopping mall “Galleria Mokotów” there is only JLD and in “Silesa Park” only CA.

This happened at Krakowskie Przedmieście

The drama of August 4th has at least 5 participants: the company Devil - the franchisee of JLD, the headquarters of JLD, the headquarters of CA and its franchisee – the company Dimension and as well the owner of the building.

The salon JLD operated at Krakowskie Przedmieście since 1998. In 2002, the salon was sold to the franchisee, who together with the premises committed to pay the rental fee. Rather quickly it was evident that the co-operation did not work out. – In the year 2003 the contract with this franchisee was terminated but after rehashing, the contract was re-signed once again – says Jaromir Matonóg.

JLD had to accept the concession because the leasee of the salesroom was the franchisee and JLD wanted to stay at Krakowskie Przedmieście at any price. Re-signing the new contract under new terms and conditions should be a warning for the franchisee. Nevertheless, the troubles persisted.

Unexpected change of place

The franchisee of Jean Louis David terminated the lease contract at Krakowskie Przedmieście. Afterwards it suspended its activities. In the meantime, the salon was rented by another company who is now the franchisee of Camille Albane.

JLD claims that this is an evasion of the contract. The former franchisee wanted to keep the salesroom and wanted to substitute the persons who will be able to sign a contract with CA. According to JLD, the management of the new leasee-franchisee consists of the same individuals who where the shareholders of Devil. The hairdresser salon employs the same staff. The legal council of JLD claims that the franchisee of JLD is still present in the salon.

The franchisee will be summoned to pay damages for breaching the non-competition close in the franchise contract. As of today, he was given a termination notice where JLD demands a payment of 56,000 zł of outstanding franchise fees including accrued interest and for breaking the contract for another 500,000 zł in lost profits. So far, similar disembarkations of the franchise system in Bytom and Piastów came up but without a chastisement for the franchisees of JLD.

Comment without comment

– Our aim is to return to the Krakowskie Przedmieście– says Jaromir Matonóg from JLD. – To the same premises and if that’s not possible, then close to it. CA takes away our localities. A war was declared. We will fight with them honestly. So far, we issue a summons – finishes Matonóg.

– I would like to avoid a comment, besides one fact that we are not a party of this conflict. We just executed an agreement with a new franchisee. – says Wiesław Flis from Camille Albane.

Read more in: Franchising Info, nr 10, 2004 r.