Mediation between the businesses took place last week, after it was announced in March last year that ODC could face legal action over an alleged lack of support for the two franchises.

Chris Land, Independent Kall Kwik Franchise Owners Association secretary, said: "I understand that there was mediation that took place last week on Wednesday and Friday and that they are currently putting something together. I hope there has been a settlement."

An industry insider said: "Both of the franchises and their outlets will be considerably smaller in the near future.

"For many years, the franchise has been run in the interests of venture capitalists, and not the owners of the print businesses involved."

He added that initially there were 300 Prontaprint outlets and 250 Kall Kwik centres, and that now there was a total of around 200.

Franchise law specialist Field Fisher Waterhouse, which is representing the franchisees, and ODC Group chief executive Sara Jamison, were unavailable for comment at the time of writing.