RFG is going to court over “unconscionable” conduct toward franchisees

The ACCC is taking Retail Food Group to federal court over “unconscionable and misleading conduct” toward its own franchisees.

The consumer group alleges RFG made false representations in its dealings with franchisees, in breach of Australian Consumer Law, when it sold or licensed 42 loss-making corporate stores to incoming franchisees between 2015 and 2019.

The franchising group, which operates Michel’s Patisserie, Brumby’s Bakery, Donut King and Gloria Jean’s Coffee, allegedly withheld critical profit and loss information and falsely represented the stores as profitable in order to sell or license the stores.

RFG has previously said it couldn’t estimate earnings for a particular franchise, even those it owned,…