ALLEGATIONS OF MISMANAGEMENT OF FRANCHISE AGAINST SGF: LEGAL CONSEQUENCES AND TRIBULATIONS OF INVESTORS
SGF, which had boasted earlier as a revenue-generating business, is currently being sued by numerous franchises. Headed by KewalAhuja , SGF promised returns to the investors in its franchise businesses. Stores are being shut down on short notice and investors suing the company for misrepresentation mean that the company’s reputation is in question. As the litigation in court strengthens, questions of responsibility and the need for greater transparency in franchise transactions come to the forefront. Kewal Ahuja SGF’s FOCO franchise model lured investors with assured monthly returns. Investors lost their assured returns, though, when a couple of outlets unexpectedly shut down shop. The worst kind of incident is the sudden closure of an outlet in Sector 31, Gurgaon, which left the investor stranded. Legal proceedings against SGF are gathering momentum in the Delhi High Court , as the investors attempt to recover their investment. Mediation has been a failure, and SGF has...