If I was to be buying RFG I would be reading the article several times over. While all the holders are bleating about the sensationalism it also contains some very specific facts that would be very concerning to me if I was holding.
Not showing store financials until you sign on the dotted line? Geez i'm a big fan of buyer beware, but i'm guessing the buyers of these franchises aren't massively sophisticated. That's a disgrace for the amount of money some of these people are handing over.
"But don't forget business failure is normal whether it's a franchisee or not" - the point of the article is that RFG business practises are squeezing the life out of the businesses not that the owners can't be successful. The previous owner of Brumby's (who should know a little about business) kept 7 stores after he sold the business and reckons they went from profitable to non-profitable after the sale. Why is that?
You would have to be crazy to buy one of the businesses mentioned in the article given the allegations and I wouldn't be surprised if a class action doesn't follow if the allegations are proven to be accurate.
RFG Price at posting:
$3.08 Sentiment: Sell Disclosure: Not Held
