Deanne de Leeuw's blog

MELBOURNE, Australia (Blue MauMau) - In an attempt to gain control of the Bakersdelightlies.com website, Bakers Delight laid a complaint on January 2, 2008 with the World Intellectual Property Organisation (WIPO), seeking an order that the domain name be transferred to Bakers Delight control.

The WIPO has investigated the Bakers Delight complaint and returned its decision in favour of the respondent.

Franchise Council of Australia Raising Money for Franchisor Members to Contest Court Ruling 

The self proclaimed peak Australian franchising body, the Franchise Council of Australia, purports to represent both sides of franchising. But its actions speak louder than words.

The Franchise Council of Australia is attempting to raise money from franchisor members to fund a High Court appeal against a significant court decision in favour of franchisees’ rights.

Attributes Downturn of Franchise Purchases to Public Internet Site

MELBOURNE, Australia (Blue MauMau) In an attempt to gain control of the Bakersdelightlies.com website Bakers Delight has laid a complaint with the World Intellectual Property Organisation (WIPO) seeking an order that the domain name be transferred to Bakers Delight

This move by Bakers Delight coincides with the website encouraging its readers to make submissions to two Australian State Government inquiries into franchising. Already the subject of an ongoing investigation by the Australian Competition and Consumer Commission (ACCC) into its conduct towards its franchisees and breaches of the Trade Practices Act, as well as numerous cases of negative media attention, Bakers Delight would be seeking to minimise any further negative exposure in the public arena into its conduct.

Australian Competition and Consumer Commission Takes Unusual Step to Publicly Confirm Investigation of Franchisor

CANBERRA, Australia (Blue MauMau) - In an unusual move the Australian Competition and Consumer Commision (ACCC) has posted a statement on their website, confirming that they are investigating the conduct of franchisor Bakers Delight. Normally the ACCC remains non-committal about investigations that they are undertaking and refrains from confirming that investigations are underway.

Bakers Delight, which trades as COBs Bread in the USA and Canada, continues to receive regular media attention with respect to their business practices. Following the ACCC statement (below) it is expected that more former and current Bakers Delight franchisees will be emboldened to relate to the ACCC their experiences with this franchisor. Other angry franchisees have already made their experiences public on the site bakersdelightlies.com.

Author's note: Below is an open letter to the Honourable Peter Costello MP, the Treasurer in the Australian Government. Mr Costello has amongst his portfolio responsibilities the administering of the Franchising Code of Conduct. This Call for a Parliamentary Committee of Enquiry has been made due to the disturbing number of similiar stories that I have received following the mentioning of the conduct of Bakers Delight in the Australian Parliament by the Honourable Joanna Gash, MP.

The Australian media has recognised that there is an imbalance in the franchise relationship with franchisors and financial institutions colluding and profiting from the franchisee. As one Australian jounalist recently said to me "where there is smoke, there is fire - we are all watching the issue closely" An Enquiry will encourage open discussion of these issues enabling informed decisions on future legislation to be made.

Australia's ACCC: "Yes, we have discovered that it (churning) does exist in some cases and we will take steps..."

SYDNEY, Australia (Blue MauMau) - Whilst being interviewed by radio 2UE about franchising issues and in particular churning, Mr Graeme Samuel, the Chairman of the Australian Competition and Consumer Commission (ACCC) stated “Yes, we have discovered that it does exist in some cases and we will take steps if we can to deal with that.”

The host, Glenn Wheeler, then stated “Interestingly though that the FCA (Franchise Council of Australia) says that it doesn’t exist”. To which Mr Samuel replied “I don’t think we can deny, I don’t think anyone can realistically deny that there are some rogue operators out there in the franchising world. It would be silly, it would be putting your head in the sand to suggest there are no rogue operators, of course there are.”

Radio Show Airs Call-Ins from Displeased Franchisees; Tales of Bank Collusion, Franchise Churning, Loss of Homes, Divorce and Mental Break-down

MELBOURNE, Australia (Blue MauMau) - An Australian radio station, 2UE, has taken up the investigation into the conduct of Bakers Delight of "churning", which was recently exposed by the national television program Today Tonight.

The radio segment lasted nearly an hour, interviewing two former franchisees, a happy franchisee, and the CFO of Bakers Delight, Richard Taylor. The segment concluded with phone-ins from other former Bakers Delight franchisees who had also suffered as a result of this franchisors conduct.

2UE intends to do further follow-ups of this story over the coming weeks.

The Australian Competition and Consumer Commisssion is investigating Bakers Delight and will shortly be making an announcement on its findings.

This company trades in Australia and New Zealand as Bakers Delight, whilst it uses the name COBs Bread in Canada and the USA.