Estella Yang is due to be produced next week, but she doesn't know what the future of the family will be. This month, Yang lost his job at Melbourne's Jamaica Blue Coffee Shop.
Yang, 33, and her husband said they had lost their financial resources. They already have one child, and another child is about to be born, and they can no longer work in the store for free.
Yang emigrated from China to Australia and bought a Jamaica Blue franchise for $ two hundred and seventy thousand two years ago.
Australia now has nearly 170 Jamaica Blue coffee shops, run by Foodco, an affiliate giant. Yang said the couple had been working in their shop for more than two years for free.
"if we don't work for free, we can't afford wages and rent. Foodco just wants to open a new store to make money. They don't care about anything else. We have to work for free all the time."
Yang says she can't go on like this anymore after having one child and having a second. "it was okay before, we didn't have children, but now I can't keep doing this."
It is reported that the coffee shop turnover is about five hundred thousand yuan a year, and they have to pay 11,999 yuan a month to the shopping center rent, and rent increases 5% a year.
"I'm pregnant, and next week is due," Yang said. I was still working until a few months ago. When I felt tired and unable to work again, I went to Foodco, to ask them for help, at least some rent cuts, but the company's consultants said, 'Sorry, we can't help,' and just found some reason to negotiate with the mall. If I don't work, I can't afford to pay the rent. "
Yang said she did not get any help from Foodco, but continued to pay for the franchise.
"the landlord urged me to pay, and a few months later I couldn't afford it, and they just took over the store," said Yang, who no longer expects to get money from Foodco. "they didn't offer anything. My husband is looking for a job. It's not easy to find a job now."
A Foodco spokesman said they strongly opposed Yang's statement, saying it was wrong.
Parliamentary franchisees are to prepare for the June hearing. Complaints against Foodco are also growing.
The affiliate sent a letter to franchisees warning about their submission of questioning comments. After the incident, the Foodco has begun to be reviewed.
Fairfax Media understands that nearly 20 Foodco franchisees have submitted reports, but most of the reports are confidential.
Alan Pearson was a former franchisee. In his submission, he said he had lost everything after running a Jamaica Blue franchise in Castle Hill, a new state.
Pearson bought franchises for five hundred and sixty thousand yuan in 2004, but he quickly found that Foodco overstated turnover. The company assured him that he could earn $18,000 a week, but he only had $12,500 a week. "for most of these 13 years, my wife and I have been in the store seven days a week, working an average of 60 hours and never going on vacation. Our physical condition has also deteriorated. We've told Foodco many times that the situation in the store is bad, but they don't care at all. "
When the Castle Hill mall was redeveloped, Foodco decided not to renew the contract because the rent was too high. "they abandoned us directly after 13 years, providing no other space, no compensation. For franchisees, there is no business without a lease. This is a disaster. "
Pearson closed the Jamaica Blue store on Feb. 28, 2018, but received a letter from Foodco demanding a payment of 67,999 yuan within 14 days. He had to sell his house to pay off his debts, but he was still in debt.
A Foodco spokesman said they provided a lot of support to franchisees. "but, like any other business or investment, we can't ensure success, and in the current retail environment, there is a lot of pressure on stores. Retail growth in shopping streets has slowed, rents have been high and operating costs have risen. "
The spokesman said Foodco is trying to minimize risk by signing a shared commitment with franchisees.
"our success also depends on the success of franchisees, it is definitely not our intention to close the franchise."
Parliamentary hearings on franchisees will be held this month.