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Cash Crusaders faces sword after a franchisee revolt

30 January 2024

Cash Crusaders is in a precarious financial position after franchisees responsible for 40% of its royalty fees broke away from the group and formed a rival outfit, ‘Cash Xchange’. The crux of the dispute are new loan initiation fees the stores charge consumers every time they extend monthly loans, a practice that Cash Crusaders had halted in 2022 after taking legal advice. In addition to litigation, an arbitration process, which could take as long as six months, is set to take place later this year to try to resolve the impasse, according to legal documents.

 

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