Hi Cheapy, you have touched on a very interesting topic. The company has experienced a significant drop in store and franchisee numbers. Yes many closed due to unfavourable financial conditions, rents etc etc. Many would have closed due to wanting to get out of a franchise business when there agreements expired. Many people will say they expanded to quickly and opened stores for the sake of it. Many will be quick to point out that a large percentage of all small businesses fail in the first few years. Bottom line is store numbers have shrunk dramatically.
The real point is RFG has failed to get any new stores open and no new franchisees. Yes brand damage has something to do with and so to has the bad image the franchise sector has as a whole.
To answer your question, RGF will never disclose what there franchisee expiry profile looks like. Because in general terms a franchise agreement has a 5 year term. If RGF has failed to sign up any new franchisee in the last 2 years, we'll that would mean most of there franchise agreements will expire in less than 3 years.
All the store currently open are old and dated. Meaning when a agreement comes up, RFG will require the franchisee to do a store refurbishment at there expense. Another reason to leave.
As I have said all along, I would not even think about buying this until you start to see the store numbers start to increase.
RFG Price at posting:
14.5¢ Sentiment: Sell Disclosure: Not Held
