If I were the PR agency for RFG, what I would propose to them is to commission a news reporter to do a pro-RFG story where the successful businesses are profiled and interviewed. Get a significant number of franchisees to say how RFG has allowed them to be successful and to fulfill a dream. Then in the same story start to counter the facts in the original story:
1) Show what percentage of businesses fail no matter what a franchisor does, and then show that the RFG failure rate is in line with that.
2) Show the steps that are being taken to correct the problems.
I think this would largely neutralize the entire crisis, and then the remaining liability is the class action, which RFG should start to allocate for in advance.
RFG Price at posting:
$1.97 Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)