Dividend yield, page-12

Good points and the price collapse indicates many agree with you. There is always risk and at $2.61 i doubled-up. Time will tell.

There are countless negative posts and here are some positive points. As i wrote many times 30 months ago when i spoke with several store owners... the RFG franchise agreement is very one sided in favour of franchisor. It needs to be softened and more leniency granted to franchisees even if agreement contains nothing illegal. Too many people's lofe savings have turned to ashes.

Undoubtedly the bad publicity will make it very hard for franchisees to sell theirbusiness. They will suffer far worse than RFG but firms will get hurt as businesses close. On the otherhand RFG keeps opening more stores. Focus over past 12+ months has been overseas esp in M.East via a JV with large local business. I expect this to reap significant revenue (and remeber the business model scoops in 8-9% revenue not a share of profits). Going fwd it may reduce to say 7-8% of total sales but the model ensures cash flow each and every week. Instead i expect RFG to lower other fees some of which are wicked. eg why charge anything for franchisee to renew the contract? just do it and be glad they are staying-on.

Many franchisees here in Oz will survive. Of the 11 stores i keep monitor here in Toowoomba (see prev post on other thread):
One has unfortunately closed (i suspected this when chatting with owner 30 months ago)
Six have renewed their leases.
Of remaining four i expect 2 will def renew, one too close to call and one will fold at end of lease.

On my visits its obvious that location plays a key role. DK's were the busiest. can't believe how many Aussies like donuts. However, RFG coffee is very good and i always try to buy at one of their outlets.

Nearest Gloria Jean is in Warwick and i'm not driving 120kms to check it out.

So not all doom and gloom. Still reckon SP is oversold. I waited for ages and was surprised SP went as low as $2.60. It may go through that mark later this week. Nothing is without risk.