Another disgruntled franchisee took Melany and Peet Viljoen to court after paying thousands and not getting a Tammy Taylor nail salon.
Tammy Taylor Global Franchising and its owner, Melany Viljoen and her husband, Peet, got a hiding in the Pretoria High Court recently when a judge issued an order that includes paying back R600 000 to a prospective franchisee.
They must also immediately stop claiming that they have the legal authority and right to sell Tammy Taylor franchises in South Africa.
Judge Joseph Raulinga issued the order on 25 April after Lebohang Hlathuka, a woman from Johannesburg, sued Tammy Taylor Global Franchising and both the Viljoens to pay back the money she paid for a Tammy Taylor franchise.
She asked the court to declare the transaction to buy a Tammy Taylor franchise unconscionable, unjust and unreasonable in terms of the Consumer Protection Act (CPA) and refund her the R600 000 she paid.
In addition, Hlathuka asked the court to order Tammy Taylor Global Franchising and the Viljoens to immediately cease selling Tammy Taylor franchises in South Africa without first obtaining the necessary authorisation and/or license from the proprietor of the registered Tammy Taylor and associated trademarks in terms of the CPA.
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Viljoens did not comply with Consumer Protection Act and Companies Act
Hlathuka also argued that the way the Viljoens conduct the business is prohibited by the Companies Act as they were knowingly part of an act and omission calculated to defraud her. She also asked the court to refer the matter to the National Prosecuting Authority for investigation and prosecution in terms of sections 214 and 216 of the Companies Act.
In her court papers, Hlathuka says she became interested in buying a Tammy Taylor franchise after seeing a post on Instagram and asked for more information, which was sent to her. She arranged a meeting at the Tammy Taylor head office to discuss the offer.
At the meeting, she had to fill in a questionnaire and give them a copy of her ID. The employee she met, called Crystal, told her that only one spot was left for the franchise opportunity and said Hlathuka would get the keys to her salon seven weeks after signing the contract.
Peet Viljoen joined the meeting and introduced himself as the CEO and said he was an attorney before becoming the CEO. Hlathuka says she only found out later that he was struck from the roll as an attorney. Mel Viljoen also joined the meeting.
Peet Viljoen and Crystal confirmed the price of the Tammy Taymor franchise was R600 000 and what it would include. They said this amount would include the license fee and training for Hlathuka.
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No time to think first about buying Tammy Taylor nail salon
When Hlathuka asked for time to think this over, Peet Viljoen and Crystal told her it is not possible as another potential owner was waiting in the reception. They said Hlathuka must pay R150 000 immediately if she did not want to lose the opportunity.
Hlathuka’s bank could not release the funds immediately, and she returned to the head office to discuss that she would R150 000 as soon as possible, as well as another R150 000. However, Crystal said this is not possible and they require the full R600 000.
When she asked if there were no papers to sign, Crystal told her that she should not worry as she was in safe hands. She could pick the contract up later. When she wanted to pick up the contract, it was not ready.
She first called Crystal when she went to the bank to release the R600 000 and pay it over and told her that her husband cautioned her not to pay the money before getting the written contract. Again, Crystal told her that she must tell her husband she was in good hands.
They arranged to meet, and before the meeting, Hlathuka paid R600 000. At the Tammy Taylor head office, Crystal gave her a contract, and that night, Hlathuka and her husband perused the contract.
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Tammy Taylor contract not as discussed, with no company registration number
They found that there was no company registration number for the franchisor and that the contents were not the same as discussed. There was also an additional amount of R345 000 for a license fee which was not discussed with Hlathuka.
When she inquired about this, Crystal told her she received the wrong contract and that she was still working on it. However, Peet Viljoen called Hlathuka and said he would not change the contract because the deal was a special promotion.
Hlathuka took the contract back to the Tammy Taylor head office the next day, and although Crystal said she would discuss the matter with Peet Viljoen, she never received any further information about it.
When Hlathuka questioned Crystal and Peet Viljoen about the negative publicity around Tammy Taylor, Viljoen dismissed it as false accusations by people trying to destroy his company and his name due to his celebrity status.
She also told Viljoen that she would not sign the contract unless it was amended, and Viljoen encouraged her to find a location for her salon. She found a location and sent Crystal and Viljoen the details. When her contract was still not ready, Hlathuka told them she wanted to cancel because her husband was unhappy about how the transaction was conducted.
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Prospective Tammy Taylor franchise buyer told not to be a panic button
Peet Viljoen then called her and said she should stop shopping around for bad news and stop being a panic button. He promised not to fail her, and she proceeded with the transaction and went to the training.
While she was at the training, a production team from Carte Blanche arrived and wanted to question Viljoen. All the trainees were ushered out of the building, and Viljoen later told them the story was about a “crazy man” whose wife died, and he wanted to get the money for her salon back.
Hlathuka found another location and informed Peet Viljoen, and he said they contacted the centre, but when Hlathuka contacted the centre, she was told nobody from Tammy Taylor was in contact with them.
She says in her court papers that this was the last straw for her. She informed Viljoen that she wants to meet to cancel. When they met, she asked if Tammy Taylor Global Franchising had a refund policy and when she could expect to get her money back, but Viljoen did not answer her, instead escorting her and her husband out of the building and telling them not to return.
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Order against Tammy Taylor Global Franchising and Viljoens
Raulinga declared the transaction unconscionable, unjust and unreasonable, in terms of the CPA, and void. In addition, he ordered that Tammy Taylor Global Franchising must refund Hlathuka her R600 000 with interest.
He also ordered that Tammy Taylor Global Franchising, as well as both the Viljoens, immediately cease representing that they have the legal authority to sell Tammy Taylor nail franchises in South Africa without permission under the Trade Marks Act and without authorisation or a license.
In addition, he ordered that they remove all references to Tammy Taylor from their websites, stationery, forms, marketing material, salon products, and social media platforms within 30 days from 25 April.
Raulinga also ordered the registrar of the court to forward a copy of the order and all the papers to the National Prosecuting Authority, and that Tammy Taylor Global Franchising and the Viljoens must pay Hlathuka’s legal costs.
The lawyer acting for Tammy Taylor Global Franchising and the Viljoens informed Hlathuka’s lawyer that they will appeal the order.
The Viljoens did not respond to a request for comment.
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