ODC settles in mediation with franchisees

On Demand Communications (ODC) has come to a settlement over the legal claims made by its Kall Kwik and Prontaprint franchisees.

Following two days of mediation, the franchise owner said a number of franchisees will stay in the business, whilst up to 45 will be involved in a staggered exit.

This will take place over the next six months where departing centres will cease to use the Prontaprint and Kall Kwik branding.

For those franchisees who remain with ODC, a new franchise agreement will be negotiated and further benefits put in place for all.

ODC chief executive Sara Jamison said: "Clearly, there have been historical issues in this business which would have influenced some franchisees' decision making. I am sad to see them leave the network and wish them every success in the future.

"For all the centres that remain, we have pledged new investments into the marketing and operations of both brands by way of people and initiatives.

"We are now keen to move forward and demonstrate our commitment to our franchisees and the profitable development of their businesses at this time."

ODC was faced with alleged legal action over a lack of support for the two franchises in March last year.

A network of on-demand business design and print centres will now be retained, with a total of 158 Prontaprint and Kall Kwik Centres across the UK and Ireland.

When the ODC franchises were sold to owners Boundary Capital in 2007 there were 322 franchises.

A spokeswoman for franchise law specialist Field Fisher Waterhouse, which is representing the franchisees, confirmed that the mediation had been successful and an amicable deal had been agreed.

A new franchise agreement will now be negotiated with the remaining franchisees.