ACCC chair Rod Sims. Disgraced franchising giant Retail Food Group is facing legal action for allegedly misleading its franchisees when selling them loss-making stores. On Tuesday, the Australian Competition and Consumer Commission (ACCC) commenced proceedings in the Federal Court against Retail Food Group (RFG), which manages and operates Michel’s Patisserie, Brumby’s Bakery, Donut King and Gloria Jean’s. The competition and consumer watchdog alleges RFG acted “unconscionably” and engaged in “false, misleading and deceptive conduct” when it sold or licensed 42 unprofitable stores to franchisees between 2015 and 2019. During these sales, the ACCC alleges the group withheld crucial financial information from incoming franchisees and made false or misleading claims about the profitability of the stores.