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RFG Acquires Big Dad’s

Australian franchise, Big Dad’s Pies has its future on the line following the announcement of its acquisition by Retail Food Group Limited.  While the Big Dad’s concept wasn’t exactly setting the world on fire it is difficult to work out why other than poor selection processes, maybe even low franchisor expectations or lack of franchisor funding were the issues?  Rent would mostly be considered peanuts.

Retail Food Group Limited [RFG] is the intellectual property owner and manager of the flourishing Donut King, Michel’s Patisserie, Brumby’s Bakeries and bb’s cafe franchise brands.  It is difficult to find criticism of RFG.  There appears to be no whinging from franchisees from any brand and following the acquisition of Michel’s, RFG were quick to remodel the financial structure that had previously caused much conflict.  RFG obviously knew what the problems were going in.

Depending on the proposed alignment strategy, Big Dad’s may now get the boost it needs to expand and that may in turn produce a serious boost for existing franchise investments.

Big Dad's Pies will be aligned to and be developed under the umbrella of the Brumby's system, and represents a further opportunity to add a successful, value accretive business capable of providing additional scale, revenues, synergies and intellectual property expansion to the company's retail food franchise system portfolio, Franchise.net.au

Big Dad’s seems to be have previously been an under-achiever franchise with a potentially healthy future.  As a lover of great pies and manageable rents I can be swayed into seeing this acquisition as potentially a great new start. 

RFG acquisitions can best be described as thoughtfully aggressive with 4 recent takeovers. In line with a common thread amongst the best of Australian franchisors, RFG appears to have no links to the Franchise Council of Australia.

RFG mission:

continue to develop the organisation as a leader and innovator in retail food systems management in order to provide benefits to all stakeholders by maximising complimentary opportunities and delivering real value for our customers

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