![]() Similar representations were made to the two other gyms. They also said the Balcatta gym’s cost of starting up a franchise inclusive of the $60,000 franchising fee would be a maximum of $800,000, according to the judgment, when this cost ended up being a lot higher. The judge found that the co-directors of UFC Gym Australia, Mazen Hagemrad and Samer Husseini, had misrepresented the gym’s financial position in order to sell franchises.Īmong other things, the court found the directors claimed two of the franchises were profitable and provided profit forecasts, when in actuality they were losing money. The Blacktown one’s total payout came to $1,955,996 while for Castle Hill it was $1,485,643. The Balcatta gym was awarded total damages of $1,789,848. Karim Girgis says he regrets the day he ever heard of the UFC Gym chain.Īt the beginning of last month, Justice Tom Thawley from the Federal Court of Australia ruled in favour of the three franchises - UFC Balcatta in Perth, and also UFC Castle Hill and UFC Blacktown, both from Sydney - after a four-year legal battle. They went into administration on the 23rd,” the 36-year-old told, adding that the legal fees alone cost him and the other two business owners $850,000. “The payment (of $5.2 million) was due on the 22nd. Karim Girgis, the former owner of UFC Balcatta in Perth - a co-owner of one of the three franchises that took the company to court and won - feels “quite dirty” about the whole process. The voluntary administration means those three franchise owners may struggle to get a cent of that money. The administration came a day after two companies behind UFC Gym were ordered to pay $5.2 million to three franchisees when a court found the company and its directors had “engaged in misleading and deceptive conduct” during the process of selling said franchises to them. These companies held the master franchise agreement for UFC Gym Australia. ![]() ![]() UFC Gym Australia, which at its peak had more than 10 fitness centres in Sydney, Melbourne, Perth and the Gold Coast, is a mixed martial arts gym franchise founded in 2009.īut late last month, on May 23, Ultimate Franchising Group Pty Ltd, UFC Gym Prospect Pty Ltd and Ultimate Franchising Group Properties Pty Ltd all went into voluntary administration. The parent companies behind a major Australian gym chain have quietly collapsed into administration after becoming embroiled in a messy $5 million court case with several disgruntled franchisee owners.
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