A Harvey Norman franchisee bailed out at a cost of almost $8 million – dragging down Harvey Norman's Australian earnings and raising new questions about the independence of franchisees – had a troubled history.

Harvey Norman revealed at its full-year results it had paid $7.8 million in "tactical support" in the June quarter to restructure one of its franchisees, a B2B business selling computers and electronics to schools, corporates and government bodies.