Daybreak Lenskart's all set for its IPO but the franchisees behind its success want to drag it to court
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Jul 29, 2025 Lenskart is poised for a major IPO, aiming to raise ₹2,150 crore amid controversy. A group of former franchisees is accusing the company of unfair practices, including financial mismanagement and competition from new stores. They are pushing the Karnataka High Court to investigate alleged fraud and transparency issues. As Lenskart transitions to more company-owned outlets, the frustrations and struggles of these franchise owners are coming to light, raising questions about the company’s future and the integrity of its operations.
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Company-Owned Stores Undercut Franchisees
- Lenskart increasingly prioritizes company-owned stores over franchises, intensifying competition for franchisees.
- Company-owned stores often open near franchise outlets, hurting franchise businesses and leading to license terminations.
Shailesh Jain's Franchise Experience
- Shailesh Jain recounted frequent area manager replacements and neglect in supporting his franchise store.
- After delays in providing a store manager and charging above market rates, his franchise license was terminated.
Fortressing Strategy Explained
- Store clustering and 'fortressing' by mixing company-owned and franchise stores is common industry practice.
- This strategy aims to dominate profitable local markets, not unique to Lenskart.