The Franchise Owner's most trusted news source

Log In / Register | Apr 26, 2018

Wesfarmers To Acquire Bakers Delight?

A rumour has been floating around for some time that Australia's Bakers Delight franchise is in financial trouble. That its business model does not work; too many of its franchisees were going broke.

Australian Government Fails Franchising

CANBERRA, Australia - Small Business Minister Craig Emerson has tabled his response to the Australian Franchising inquiry. His response lacks leadership on this issue and plays into the hands of rogue franchisors by allowing them to continue to get away with dishonest and unethical behaviour that is just not accepted in other areas of business.

Bakers Delight v New South Wales

SYDNEY - In November 2005 my husband and I commended proceedings against Bakers Delight Holdings Limited in the Industrial Relations Court of New South Wales using the 'Unfair Contracts' provision.

Australian Government Announces Inquiry into Franchising

On 25 June 2008 the Australian Federal Parliament Joint Standing Committee on Corporations and Financial Services resolved to inquire into the Franchising Code of Conduct and related matters.

Bakers Delight Censorship Attempt Denied

MELBOURNE, Australia (Blue MauMau) - In an attempt to gain control of the 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.

Bakers Delight Seeks Censorship Order

Attributes Downturn of Franchise Purchases to Public Internet Site

MELBOURNE, Australia (Blue MauMau) In an attempt to gain control of the 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.

Bakers Delight: The ACCC Investigation Confirmed

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

Call for Australian Parliament to Inquire Into Franchising

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.

ACCC Chairman: Franchise Churning Does Exist

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.”

Bakers Delight Back in the Australian Media

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.