Samanani represented the two brands through his company Hoggers Ltd. South Africa’s Famous Brands owns both Steers and Debonairs partnered with Hoggers Ltd in 1997 in a move that saw them dominate the fast food industry.
However, Mr Samanani’s 23-year-run came to an end after Justice David Majanja allowed Famous Brands to reclaim and run the operations of the Steers and Deboinairs fast food eateries across the country.
Hoggers had seven franchise agreements with Famous Brands and Hoggers Ltd to operate Steers and Debonairs fast food eateries until 28/2/24.
Hoggers Ltd has been facing financial woes for a couple of years now.
According to court papers, the company owed institutions like banks an excess of Ksh 67 million. The company has also reportedly failed to pay Famous Brands Ksh 6.1 million in royalties.
In June 2020, Famous Brands sent a letter terminating the franchising agreements for Debonairs and Steers Ngong Road.
Twenty days later, Famous Brands sent out another later terminating the franchise deal for Debonairs and Steers Kiambu road which was to expire in a month.
During an inspection in April 24, May 5 and June 1 last year,some Debonairs and Steers branches failed the requirements listed in the franchising contract.
There were claims that some branches were using faulty oven thermometers, walk-in freezers, refrigerators besides a general lack of stock. There were claims that some branches were using the wrong type of cheese and products not recommended by Famous Brands.
Hoggers is said to have terminated deals for four branches for not adhering to the laid down instructions in the franchising business which was deemed a breach of contract and agreement.
Famous Brands is also the parent company of Mugg & Bean, an eatery that has set shop in different Total Petrol.This happened after the two reached into a partnership agreement.
Famous Brands will run the businesses through its local subsidiary Fb Franchising Kenya.
Source: KENYAGIST.COM
