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'I’m still in the pit trying to get out': Franchisees need more than RFG's shallow words



" Meanwhile, its franchisees and ex-franchisees continue to suffer.

Wing Chan still has a lump in his throat when he talks about RFG.

"The wound is so deep down," he says. "I jumped into this RFG pit and I still can’t see a way out."

Chan spent his retirement savings of $600,000 on two Michel’s Patisserie stores in Cessnock and Newcastle in 2011 after he couldn’t find a job.

In his 60s, he saw it as a way to own his own business, build it up, and work towards his retirement.

Instead, he worked for free for seven years, lost his investment and is now being chased by RFG, suppliers and the liquidators.

"I have a lot of angry bullets in my stomach but I don't know where to shoot at," he says.

Like many franchisees, Chan was squeezed by fees and rebates, leaving him struggling to pay the bills. He said the company didn’t support the brand, and the cakes supplied were expensive and regularly turned up in poor condition or late.

Now he is being chased by RFG, suppliers and liquidators. He said he sold one of his Michel’s Patisserie stores at a hefty loss for $50,000 just over a year ago, but the new owner couldn’t make it work and went bankrupt."

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