John Cargnello,the owner of the Step Into Life franchise,has been charged by police.Credit:Paul Jeffers
The national outdoor fitness franchise,which Mr Cargnello bought in 2018,has been hard hit,with franchisees leaving in droves after being alerted to the claims against Mr Cargnello when the Step Into Life head office was raided by police at the end of 2018.
At the peak,there were 165 Step Into Life franchises operating across Victoria,NSW and Queensland,but the number has now dropped to less than 50.
Ron Roszczyk bought a Step Into Life franchise in the Melbourne suburb of Wantirna in 2015 for $50,000,but when his contract finished last year he made the decision to walk away with nothing.
"Business started solidly but deteriorated rapidly over the four years,"he said.
"Everything stopped,all the support you would expect as a franchisee stopped."
The charges against Mr Cargnello were the final straw for Mr Roszcyzk.
"It's been very stressful,"he said.