CTM RETURNS TO ESWATINI FOLLOWING PROLONGED LEGAL BATTLE

MATSAPHA – After a lengthy legal battle, CTM has officially returned to its rightful premises in Matsapha, signalling the end of a drawn-out franchise dispute.

The return of the well-known tile and sanitaryware retailer follows the conclusion of court proceedings involving Italtile Franchising (Pty) Ltd and F.E.Z.S (Pty) Ltd, the company previously operating the CTM franchise in Eswatini. The Italtile Group’s retail brands are CTM, Italtile Retail and TopT, represented through a network of stores, including online webstores, in Southern and East Africa.  

The legal wrangle stemmed from what Italtile described as a flagrant breach of franchise agreements by F.E.Z.S.

According to court documents, F.E.Z.S had failed to comply with critical terms of the CTM franchise agreement, including refusing or neglecting to trade in goods agreed upon by both parties. Furthermore, F.E.Z.S reportedly removed all CTM and Italtile signage from the premises and replaced it with branding for a new entity, JTM—effectively severing visible ties with the franchise.

The franchisor, Italtile Franchising, and Allmuss Properties—referred to in court as the second and first applicants respectively—sought legal relief, leading to the eventual ejection of F.E.Z.S from the premises located on King Sobhuza II Avenue in Matsapha.

In a significant development, F.E.Z.S vacated the premises on January 31, 2025, with the respondents’ attorneys notifying the appellant’s legal representatives in early February that, in light of the compliance with the court order, the matter had become moot.

Declaration

It remains unclear whether the appellants responded to that correspondence.

However, the matter reached a definitive turning point when, on May 6, 2024, the respondents filed a Notice of Motion seeking the formal declaration of the termination of the franchise agreement, the ejection of F.E.Z.S from the premises and an order for costs on an attorney-client scale.

The High Court granted the application, affirming that:

1. The franchise agreement between F.E.Z.S and Italtile Franchising had been lawfully terminated;

2. F.E.Z.S was to be ejected from the premises.

With JTM signage now removed and CTM branding reinstated, the return of CTM marks a fresh chapter for the brand in Eswatini. Industry observers note that this move is expected to revitalise customer confidence and restore the company’s market position.

The return also underscores the importance of compliance within franchise partnerships and reaffirms the legal protections afforded to franchisors in instances of contract breaches.

CTM’s comeback is poised to bring renewed competition and improved customer service offerings to the home improvement and construction retail sector in the country.

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