The Franchise Owner's most trusted news source

Log In / Register | Jul 22, 2018

Just One of Australian Franchising's Dirty Little Secrets

Not many Australians have heard of Retail Food Group, however, in the world of Australian franchising it has a huge reputation as a leading scavenger of small to medium brands, mostly struggling, and today having twelve brands under its umbrella with aspirations to go global.

This detailed article, 'Cup of sorrow: the brutal reality of Australia's franchise king,' published by two of Australia's highly respected investigative journalists,  Adele Ferguson and Sarah Danckert, delivers a detailed account of failed franchising on what is a large scale while putting the Franchise Council of Australia on notice for a new era in Australian franchisee activism.  Ferguson and Danckert will now be inundated with complaints from hundreds of brands. Fallout for the franchising industry is guaranteed, unless FCA can shut down two multi-award winning journalists who have not been shut down previously.

"The Bankses are one of hundreds of franchisees who have been financially devastated after signing up to one of the high-profile franchise brands under the RFG umbrella."

"Julia Banks will never forget the panic attacks. She still finds herself waking up in the middle of the night, heart pounding and mind racing, from the stress of running a Donut King franchise in Marsden, Queensland. As debts and losses mounted, Banks and her husband John lost their savings and family home."

"The Bankses started their Donut King store in early 2015 under a franchise agreement with Retail Food Group (RFG).

Gold Coast-based RFG is the country's biggest food franchise operator, whose brands include Donut King, Brumby's, Gloria Jean's, Pizza Capers, Crust Gourmet Pizzas and Michel's Patisserie. It has a market capitalisation of about $800 million and claims to have more than 2500 stores."

No doubt the FCA members will set about attempts to use advertising leverage as they join forces to protect franchising's manufactured aura of respectability while the FCA legal firm foundation rubs their collective hands together reaching further into the pockets of its franchisors.

Australian franchising is about to become interesting. 

RFG published a response to Fairfax media's network publication HERE

Your rating: None Average: 5 (2 votes)

About Ray J Borradale

Ray J Borradale's picture

Area of Interest
Franchise Operations