Retail Food Group responds to class action from former, current Michel’s franchisees
Read the operator’s full statement here.
Retail Food Group has issued the following statement in response to allegations made by a former Michel’s Patisserie franchisee in a class action before Federal Court:
Retail Food Group Limited (RFG or the Company) advises that it has accepted service of representative proceedings brought in the Federal Court of Australia, commenced against the Company and two of its related entities, by a former franchisee of the Michel’s Patisserie brand system on behalf of itself and certain other Michel’s Patisserie franchisees, former franchisees and their related parties.
No allegations have been made in the proceedings in respect of the other brand systems operated by RFG.
The proceedings, the possibility of which was disclosed in the Company’s past accounts, relate to the historical conduct and operation of the Michel’s Patisserie brand system under former RFG leadership, including changes implemented to the supply chain during the period 2015 – 2016 (the ‘fresh to frozen’ model), and alleges breach of Franchise Agreement, contraventions of the Australian Consumer Law and the Franchising Code of Conduct.
The representative applicant is seeking damages, declarations, interest and costs on behalf of the representative group. It is not currently possible for RFG to quantify the financial implications of the outcomes being sought against it in the proceedings.
RFG is currently reviewing the allegations made in the proceedings, which have been commenced by way of Originating Application and Concise Statement and not by way of a fully particularised Statement of Claim.
That said, the Company denies the allegations raised against it and its related entities, and will be defending the proceedings.
This announcement has been authorised by the Chairman of the Board.
