O'BRIEN'S IRISH Sandwich Bars founder Brody Sweeney has rejected claims that the company is attempting to transfer leases to its franchisees on "onerous" terms.

The group, which has been in examinership since July, is attempting to have a series of leases on its outlets "repudiated".

The company leases the premises from which its franchisees operate and sublets the properties to them. As part of a proposed rescue plan, it is attempting to repudiate some of these leases, which means it would no longer be liable for them, and the franchisees would lease directly from the landlords.

A group of franchisees are objecting to the plan. They said this week they were financially unable to take on leases agreed by the company.

A statement from Mr Sweeney yesterday said franchisees already took on the commitment when they signed a sublease, and where they also took part in the negotiations and agreed the terms themselves.

The franchisees were also concerned they were being asked to give personal guarantees. The company statement said they would not be required to give further personal guarantees other than those they had already given.

The statement rejects franchisees' claims that the company was attempting to saddle them with its debts. "Any arrears on a premises are due by the franchisee to O'Brien's, and subsequently from O'Brien's to the superior landlord," the statement said.