Ex-franchisee wins legal aid to sue Panic Link by Rob
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Willock • An ex-franchisee of parcels firm Panic Link has won legal aid to sue the company for over £80,000 for non-payment of commission and lost profits. Two weeks ago CM reported ANC faces similar action from two of its former franchisees.
Linda Barksby bought the PL Sheffield franchise in November 1995 and built the business up from eight customers to 61.
"But then things dropped off," she says. "Panic Link promised us all the back-up we needed, but nothing was done to eliminate the bad franchisees—we're only as good as the people who deliver for us and I lost my customers."
Barksby's business folded the following September with debts of £40,000. She has since refused to accept an offer of £3,500 in full and final settlement. "I made my business, they crumbled it," she says.
She and her partner Steven are being backed by the Despatch Association: spokesman Colin Fenge says Panic Link's cashflow crisis is not over by any means (CM 20 Jan-4 Feb). "Panic Link is continuing to bullshit people," he says, adding that the company is "only weathering the storm" by squeezing existing franchisees and continuing to sell new franchises at high rates.
Panic Link has recently advertised in national newspapers for new franchisees, offering "support, training and ongoing assistance from Britain's favourite parcel carrier". Barksby intends to prove this support is not forthcoming.
111 Disgruntled Lynx franchisees are planning a meetingin Manchester on 30 May to discuss falling service levels in the parcels franchising business.
Contact: 0421 588423.