Heavy hitters look to leave Mike Pero Mortgages
Thirteen Mike Pero Mortgage franchisees have served notice on the company that they will not be renewing their contracts.
Thursday, April 2nd 2015, 6:00AM
The 13 mortgage advisers, reportedly, account for more than half of the business written by the group. They have been described as the "heavy hitters" in the group when it comes to business volumes.
The dispute revolves around contract negotiations and allegations that the franchisor, Liberty Financial, has adopted a “take-it-or-leave-it” approach.
It is understood the dispute will head to court as the franchisees want to overturn a two-year restraint of trade clause in their contracts.
They are also disappointed that the brand has lost some of its marketing nous because of another dispute between Liberty and Mike Pero’s marketing company.
Under the agreement company founder, Mike Pero, provided voice overs and other material to help generate leads for advisers.
Liberty originally bought a half stake in Mike Pero with joint venture partner NZ Finance in 2006. At that time the company was valued at more than $25 million. Liberty acquired the remaining 50% share from NZ Finance two years ago.
It paid NZF $2.5 million for its 50% stake.
The battle for control of the company was long and acrimonious involving a number of legal stoushes.
MPM national manager Simon Frost would not comment on the dispute. “I’m not going to enter into any comment around that,” he said.
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