Bitter End to Crackit Partnership with EMS

EMS ditches CRACKiT franchise “at short notice” Assures parents of students it will run under a different brand CRACKiT accepts termination but calls it a breach of contract The partnership between tuition services outfit CRACKiT Botswana and Energetic Market Solutions (EMS) that had franchised some CRACKiT centres has ended badly and morphed into a war of words between the two entities. CRACKiT has worked with EMS since 2021 with the latter running centres in Phakalane, Francistown, Palapye, Lobatse and [ihc-hide-content ihc_mb_type="show" ihc_mb_who="1,2,3,4" ihc_mb_template="3" ] Maun as a franchisee in an arrangement that was to last for 18 years. However, the relationship came to an abrupt end this week when EMS terminated its contract with CRACKiT effective 30 June 2023. In a letter addressed to parents, the CEO of CRACKiT, Moemedi Senwelo, said EMS decided to terminate its contract prematurely by a letter dated 23 June 2023. Hostile takeover He described the termination as “a very short notice of seven days” and a breach of their contractual agreement regarding termination and notice period. “However, we established that their plan was to carry out a hostile takeover of the said CRACKiT centres with the intention of rebranding them and forcing our clients to come with them,” Senwelo wrote to parents of their students. “This goes contrary to our franchise contractual agreement according to which this intention must have been communicated well in advance so that you, our valued stakeholders, were given ample time to make informed decisions about your children’s education, and for CRACKiT, the franchisor and owners of the business, to make the required adjustments for continued service excellence to you.” Disturbing period Senwelo stated that meetings between EMS and parents on the day EMS sent its termination letter to CRACKiT were done without the knowledge of CRACKiT, saying this confirms the idea of a hostile takeover of the franchised business. He added that this followed a disturbing period of time during which EMS was not complying with CRACKiT franchising standards. In a media statement, Senwelo stated that they have accepted the termination of the contract inspite of the short notice and that the company will continue to provide services at the affected areas from new locations. Ex-wife Meanwhile, the CEO of EMS, Thelma Senwelo - who was formerly married to the CEO of CRACKiT - has told parents by letter that EMS is not exiting the industry but will continue to offer the same services under the Dream World Academy brand. She describes the termination of their contract with CRACKiT as a part of the growth and expansion plans of EMS. Her company, she asserts, is taking a leap to become an independent entity under a newly established brand and will be operating in five different towns, namely Francistown, Phakalane, Maun, Palapye, and Lobatse. Centre Manager Thelma is said to have started her career with CRACKiT as a tutor in 2017 before being promoted to the position of Centre Manager towards the end of the same year. She became a director of EMS, which was responsible for managing some centres across the country, in 2019. The following year she assumed the role of CEO at CRACKiT Tuition Botswana for a year before officially becoming the franchise director under EMS in 2021 in an 18-year contract. The contract was for centres in Francistown, Maun, Kasane, Molepolole, Lobatse and Palapye with Phakalane added later. In a media statement, Moemedi Senwelo stated that they have accepted the termination of the contract despite the short notice. He noted the company will continue providing services to the affected areas from new locations. [/ihc-hide-content]

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Bitter End to Crackit Partnership with EMS

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