In another restraint of trade case, seven Mike Pero Mortgages franchisees are taking High Court action over obligations in their franchise agreements that prevent them from competing with the franchisor for two years after their franchise agreements expired. They are claiming that the terms which they signed up to can't be enforced. One franchisee, who chose not to renew his franchise agreement earlier this year, instead wants to set up as an independent broker. Mike Pero (New Zealand) has got interim orders against all seven franchisees preventing them competing with the firm as mortgage brokers.

This is the second restraint of trade case to hit the news this week after a former multiple franchisee of Video Ezy was forced to re-brand back to the franchise by the High Court.

Strangely, the New Zealand Herald has chosen to headline its article about the mortgage broking case with a photo of Mike Pero, despite admitting in the article that Mike Pero no longer has any part in the business.