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Category: Banking / Small Business

Mick Gatto called in to Bank of Queensland franchisee dispute

Friday, 18 Mar 2016 14:38:55 | Pat McGrath

Mick Gatto is helping franchisees in their dispute with the Bank of Queensland (AAP: Julian Smith)

Melbourne gangland figure Mick Gatto has been called in to help settle a dispute involving Bank of Queensland (BoQ) franchisees who say they were unfairly kicked out of their branches.

Key points:

  • Franchisees say Bank of Queensland not paying enough compensation for taking branches back
  • Mick Gatto called in to help negotiate
  • Claims bank is trying to walk away from unusual franchise model

Gatto Corporate Solutions, a company run my Mr Gatto's associate Anthony Swords, began negotiating on behalf of former BoQ franchisee Sean Van Cuylenberg last year.

Mr Van Cuylenberg says the bank did not properly compensate him when it took over his one of his two franchised BoQ branches in Melbourne's eastern suburbs in 2014.

BoQ refused to negotiate with Mr Swords and Mr Gatto, so Mr Van Cuylenberg sold a share of his second branch to Gatto Corporate Solutions in an effort to force the bank to the negotiating table.

The bank said that was a breach of its franchise agreement, and closed the branch down.

Mr Van Cuylenberg said the $265,000 the bank paid him in compensation was not enough to cover his outstanding debts to the bank.

He wants about $1.5 million in compensation.

"We were actually the pioneers that built the Bank of Queensland brand in Victoria," he said.

"And for us to be treated the way we have been is absolutely pathetic."

Do you know more about this story? Email 7.30syd@your.abc.net.au

Mr Swords has told 7.30 that since Mr Van Cuylenberg's fight with the bank became public, other former franchisees have turned to Gatto Corporate Solutions for help.

Mr Van Cuylenberg was one of the first franchisees to buy into the Bank of Queensland's aggressive interstate expansion last decade.

Many of the bank's branches around the country are run as franchises — an unusual model for the banking sector, under which the bank pays franchisees commissions on loans, deposits and other products.

Sean Van Cuylenberg Photo: Franchisee Sean Van Cuylenberg looks at a branch taken back by the Bank of Queensland (Pat McGrath)

The bank says it is committed to the model, but has been scaling down its franchise network since it posted a $17.1 million loss in 2011.

7.30 has spoken to seven Victorian former franchisees who say the bank has treated them unfairly.

Some franchises believe the bank is trying to pay as little compensation as possible as part of its plan to shrink its number of branches.

The bank had agreed to an interview with 7.30 this week to respond to the claims, but later pulled out.

In a statement, the Bank of Queensland said the franchisees 7.30 spoke to lost their branches because they broke the bank's risk and compliance rules.

"We are satisfied the actions we have taken in relation to this small minority of former owner managers leave our branch network in a far stronger position," the statement said.

AustraliaPlus


 

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