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Donut King, Gloria Jeans Owner Taken to Court for Allegedly Lying to Franchisees The troubled company behind Michel’s Patisserie, Brumby’s Bakery, Donut King and Gloria Jean’s Coffee, is being sued by the competition regulator for allegedly lying to franchisees over the financial viability of its stores. The Australian Competition and Consumer Commission (ACCC) alleges that between 2015 to 2019, the Retail Food Group misled franchisees when it sold or licensed 42 loss-making stores. The group could face tens of millions in fines if the Federal Court of Australia finds in favour of the A...

To print this article, all you need is to be registered or login on Mondaq.com. The federal government recently released an exposure draft proposing numerous changes to the Franchising Code of Conduct ( Code). The proposed changes are in response to the Parliamentary Joint Committee's Fairness in Franchising Report and seek to improve protections for, and information available to, franchisees. If enacted, the Code will rebalance franchise arrangements in favour of the franchisee and franchisors will face increased obligations and restrictions. Further, for breaches of ...