{"id":162034,"date":"2025-12-01T02:52:04","date_gmt":"2025-12-01T02:52:04","guid":{"rendered":"https:\/\/www.newsbeep.com\/nz\/162034\/"},"modified":"2025-12-01T02:52:04","modified_gmt":"2025-12-01T02:52:04","slug":"ponsonby-beauty-clinic-with-staff-at-centre-of-wage-dispute-owes-almost-500000","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/nz\/162034\/","title":{"rendered":"Ponsonby beauty clinic with staff at centre of wage dispute owes almost $500,000"},"content":{"rendered":"In their first report, the liquidators\u2019 said \u201cthe director has advised that the reason for insolvency is due to a flawed business model and industry restructuring by the head franchisor\u201d.<\/p>\n
The report said staff were owed $37,366 in wages and holiday pay.<\/p>\n
Inland Revenue is owed $12,290 while unsecured creditors are owed $444,070.<\/p>\n
The company has a book value of fixed assets of $297,373, according to the liquidator\u2019s report.<\/p>\n
The Herald previously reported that the clinic\u2019s four staff had been told their workplace was closing, but understood the franchise agreement would terminate on August 31.<\/p>\n
Frykberg claimed staff were \u201cupdated regularly\u201d regarding the closure and were advised as early as April.<\/p>\n
However, beauty therapist Behnoosh Bahmanpour said all updates were verbal and through Frykberg, and staff did not get any written letter or email about redundancy from LCNZ Operations. <\/p>\n
A dispute ensued around responsibility to pay the outstanding wages of staff.<\/p>\n
A Laser Clinics spokesperson told the Herald all Laser Clinics in New Zealand operate under a 50-50 ownership model. <\/p>\n
\u201cUnder this model, the franchisee is the employer of clinic staff and solely responsible for employees\u2019 entitlements and obligations.\u201d<\/p>\n
But Frykberg claims that the Ponsonby clinic \u201cwas a victim of the franchise business model\u201d. <\/p>\n
In an August 8 email, Frykberg told Laser Clinics he\u2019d need financial assistance to meet final payroll payments, saying \u201crevenue is pretty much non-existent\u201d.<\/p>\n
Frykberg further outlined the company\u2019s dire financial situation in an August 27 email to Laser Clinics\u2019 lawyers, the law firm Wynn Williams.<\/p>\n
In response, lawyers told Frykberg: \u201cYou are obliged to pay the franchisee\u2019s staff whether or not the franchisee is solvent (which it is not)\u201d.<\/p>\n
Laser Clinics said it made the decision to terminate the franchise agreement for the Ponsonby branch because of \u201crepeated and material unremedied breaches\u201d by the franchisee.<\/p>\n
\u201cOur actions were necessary to protect the wider Laser Clinics network and the integrity of our brand.\u201d<\/p>\n
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