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Franchise scheme folds

5th October 1989, Page 14
5th October 1989
Page 14
Page 14, 5th October 1989 — Franchise scheme folds
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Which of the following most accurately describes the problem?

• A Coventry-based company which advertised for hauliers and parcel firms to set up a nationwide distribution network based on franchises (CM 17-23 August) has folded.

Distribution 2000, part of the Ringway Group which includes contract hire and leasing firm Truck 2000, said it was interested in recruiting franchisees in Wales, East Anglia, Lincolnshire and the Scottish Highlands. Franchise manager Michael Davies told CM that the firm intended to offer "a total distribution operation from

general haulage to overnight parcels delivery".

But Davies has since resigned from the company and Distribution 2000's James O'Connell says a management decision was never taken to launch a franchise network.

"The idea was entirely Michael Davies'," he says, "and he placed the advertisements on his own volition. He was interested in a franchise operation, but when he resigned and the company was reorganised it was decided not to continue with it." O'Connell says that replies from interested hauliers had begun to filter in, but stresses that he has been in touch with these people to explain the situation.