Allphones thanks franchisees for their support

Record sales despite withholding stock and income.

Allphones has thanked franchisees for their support during a period where the company was being sued by several of them.

The company yesterday settled a long-running case brought about by the Australian Competition and Consumer Commission (ACCC) over unconscionable conduct towards franchisees.

That included withholding income and stock from franchisees in an effort to have them quit their franchises.

"Allphones thanks its franchisees for their support during this period. Throughout this period, sales have continued at record levels," the company's statement read.

"Allphones remains Australia's largest independent mobile communications retailer and the company works hard so that its franchisees enjoy the benefits flowing from this."

When asked for clarification, a spokeswoman for the company declined to reveal specific examples of the support Allphones had received, again citing only the rise in sales as evidence.

She then declined to reveal any concrete figures on how much sales had increased and over what period.

Allphones said it understood "the seriousness of the matters and the impact of its behaviour on its franchisees.

"The board and management have worked hard over the last three years and have improved the way the company operates with particular reference to its systems and transparency," the statement said.

"Allphones recognises the severity of this matter and has respected the ACCC's processes throughout, however at all times it has been focussed [sic] on further developing and improving its business."