Haven't heard what law RFG have broken yet?. Unfair Contract Terms in their Franchise Agreement maybe? This makes an agreement potentially unenforceable but that could be the same with Dominoes or any other franchise system? I think what this story shows is how hard food retailing is and how franchise systems don't make it a sure bet. Franchisees have a much better chance of survival though (franchise council 'FCA' stats). Have some friends who have operated multiple Donut Kings and they say RFG is no better or worse than Other franchise systems. Their not happy with RFG but not upset with them either? They are more disgruntled at Westfield and Corporate landlords. One had their Donut King shop location forcibly relocated to an inferior position in the centre and their turnover dropped by 20%. They said RFG helped them throughout this difficult period though? My donut king friends mentioned there are some franchisees who simply have no idea how to run a business. They thought it was a passive investment rather than one they would have to work hard in and actually work themselves! And they blame RFG, Landlord and their staff to anyone who will listen. Interestingly I heard Dominoes franchisees are the most disgruntled of any franchise system.
RFG Price at posting:
$3.08 Sentiment: Hold Disclosure: Held
