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Log In / Register | Jul 20, 2018

Crazy Franchisor Pays An Extra $17M

Earlier this year I had concluded that the management at RFG were smarter than most after announcing it would move away from ever increasing abusive rents in shopping malls. Now I have 41 million reasons to conclude otherwise.

Retail Food Group has the Brumby’s bakeries, Donut King and Michel’s franchise brands and recently announced the planned acquisition of Crust Pizza, with fifty gourmet pizza outlets, at $24M.

Having performed initial due diligence RFG have come back with a new offer; $41M. I’m just not so sure that management at RFG have gone completely bonkers. I suppose the genius in it will come out at some time in the future … or it won’t.

To fund this, Retail Food Group will conduct its first capital-raising since 2006. The company is in a trading halt until it figures out the details, which can't be thrilling for its shareholders, given the company announced a completely different price for Crust Pizza in August.  Leading Company

Did I mention that the Crust Pizza product is unbelievably good.

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About Ray Borradale

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Public Profile

Over forty years experience in Small Business and more than twenty-five years in franchising operations as a franchisee and employed by three franchisors, mostly in operations.

I have dedicated more than ten years and over 15,000 hours in the pursuit of quality franchising and exposing franchisor abuse of franchisees while advocating for the introduction of franchise relationship Law and the levelling of the dispute processes between bigger business and small business.


Area of Interest
Franchise Operations