FIRST Choice’s latest franchise partner TravelPlan was threatened with being shut down by consortium Worldchoice for failing to pay suppliers.
Travel Weekly can reveal the north-west miniple, which has become First Choice’s second franchise, was threatened with winding up proceedings by Worldchoice in March because of a dispute over a debt of £27,000.
Worldchoice chairman Colin Heal said it was the first time the consortium had taken such action against a member. “We could have shut them down. TravelPlan were the worst members we have ever had.
“They begged us for mercy so we allowed them to pay in instalments,” he added.
An out of court settlement was reached and the debt was cleared in March but the agency and the consortium remain in dispute over outstanding membership fees now it has defected to First Choice.
TravelPlan owner Wayne Wyre admitted there was a “commercial disagreement” with Worldchoice but denied it was behind the decision to become a franchise, refuting suggestions the agency joined First Choice to safeguard its future. He claimed he plans to open three more shops this year.
TravelPlan’s area sales manager Natalie Loftus said the franchise deal offered long-term security. “Although being part of Worldchoice means that we are part of a big group, we do feel that we are lacking support and, maybe some guidance, which I know First Choice will provide.”
First Choice head of partners Doug Nye said TravelPlan was “paying upfront all costs associated with the rebrand”.
The company said a financial audit of the company was undertaken before the franchise deal was agreed, and it was aware of the situation with Worldchoice.