UFC Health club Australia goes below
By Max Aitchison For Each day Mail Australia
22:42 25 Jun 2023, up to date 00:44 26 Jun 2023
The guardian firms behind UFC Health club Australia have collapsed, following a damning court docket judgement which ordered the homeowners to pay over $5 million again to disgruntled franchisees.
A trio of guardian firms for UFC Health club Australia, a combined martial arts health club franchise based in 2009 with health centes in Sydney, Melbourne, Perth and the Gold Coastwent into voluntary administration on Could 23.
It comes only a day after the health club’s guardian firm was ordered to pay over $5 million to 3 franchise homeowners after a messy four-year authorized battle, in keeping with news.com.au.
A court docket discovered the corporate and its administrators had ‘engaged in deceptive and misleading conduct’ in the course of the means of promoting the franchises.
The decide discovered that the co-directors of UFC Health club Australia, Mazen Hagemrad and Samer Husseini, had claimed two of the franchises had been worthwhile and supplied revenue forecasts, when actuality they had been dropping cash.
Karim Girgis, the previous proprietor of UFC Balcatta in Perth — a co-owner of one of many three franchises that took the corporate to court docket and received — stated he feels ‘fairly soiled’ in regards to the saga.
‘The fee (of $5.2 million) was due on the twenty second. They went into administration on the twenty third,’ he instructed information.com.au.
Mr Girgis fears that he won’t be able to recoup the cash. Authorized charges alone price him and the opposite two enterprise homeowners $850,000.
A UFC Health club Australia spokesperson stated the corporate had appointed directors as a result of it was the ‘best choice out there’ to stabilise its monetary state of affairs and added ‘the corporate retains full confidence sooner or later’ of the model’s continued survival in Australia.
One of many administrators is reportedly interesting the court docket judgement.
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