[ad_1]
A federal parliamentary committee recommended opening an extensive investigation into allegations that Australia's largest franchise owner, the Retail Food Group, and its directors were engaged in financial transactions. insiders, short sales and tax avoidance.
The global food and beverage company, which operates the main franchise of brands such as Gloria Jean's, Brumby's Bakery, Crust Gourmet Pizza Bar and Donut King, was strongly criticized in the final report of l & # 39; investigation. "
The Franchise Inquiry Committee has recommended radical sector reforms, including more stringent disclosure requirements for franchisors, increased regulatory powers for the Australian Competition Commission and consumers, and whistleblower protections for franchisees.
The final report, released Thursday, revealed that the operation of small business owners by their main franchise operators was "systemic" and that the system had resulted in a salary theft.
"Many of the public and confidential contributions received by the committee highlighted the significant, and often shocking, damage that many franchisees have suffered as a result of franchisors' exploitation," the report said.
"On the basis of the evidence presented to the committee in public and with confidence, far too many franchisors abuse the power imbalance between themselves and their franchisees.
"The Committee notes that the theft of wages continues to occur in many franchises: in part because of the business model of franchisors and because of a range of socio-cultural issues. In some cases, the theft of wages has been encouraged by franchisors. "
Retail Food Group on Wednesday denied rumors that it was about to be administered.
The committee devoted an entire chapter of its report to the Retail Food Group, presenting a long list of claims from franchisees and others. He noted that the company's share price had plummeted and that there was "significant doubt" about its ability to continue.
"It appears that RFG has put in place a particularly unfair business model in which shareholders and executives have profited at the expense of franchisees," the committee said.
"While the ultimate market verdict is probably not a surprise to those who have watched and experienced RFG's operations closely, it offers little comfort to franchisees whose lives have been destroyed by RFG's business practices. nor to those who are still struggling locked into the RFG business model and would be negatively affected if RFG is unable to satisfy its lenders.
"The Committee notes that the ACCC, the Australian Tax Office and the Australian Securities and Investments Commission have not yet conducted exhaustive, systemic and judicial investigations into the actions and the operations of RFG and its current and former leaders. "
He recommended that these bodies open inquiries into matters "including, but not limited to, Australian consumer law, the code of conduct on franchising, insider trading, short selling, market information (including related party obligations), compliance with directors' duties, quality audit, valuation of badets (including goodwill) and tax evasion ".
Source link
