A Hotondo Homes franchisee has gone into liquidation and had its franchise agreement terminated.

The collapse of the construction company has left six homes unfinished.  The franchisee, Seachange Caloundra, owes about $850,000 and has 115 unsecured creditors.

The business apparently turned over $2.7m in 2014 but had not prepared accounts for the last year, the liquidator told Smart Company.

Glen Oldham of Oldham Liquidators said the cause of liquidation is likely to be poor financial advice.

“We’re looking at poor professional advice in the past, accounting and bookkeeping,” he said.

The CEO of Hotondo Homes, Caroline Kennedy, said the franchise had contacted affected customers directly.

“All customers are protected by Home Warranty Insurance. We are working closely with the administrator to understand the potential impacts and assist where we can.”

• You can also read: Franchise failure and the franchise agreement.