It's on.......7/11, Dominoes, Caltex, Donut King, Brumby's, Michel's Patisserie, Gloria Jeans, Crust Gourmet Pizza and Pizza Capershttps://www.brisbanetimes.com.au/business/calls-for-probe-into-donut-king-get-louder-20171212-h03b21.htmlexcerptsSince Fairfax broke the story on Retail Food Group at the weekend with revelations that showed many franchisees were going to the wall due to a brutal business model, many more have come forward with tales of woe... That is a good start but it doesn't go to the heart of the problem, which is the franchise model itself.A key issue is the power imbalance, which can and does get abused.Caltex is doing a wage compliance audit of its network of franchised stores. Under Caltex's franchise agreement, it can seize control of a station when there is even modest underpayment of wages without paying any money to the franchisee. So far it has taken over more than 100 stores and the franchisees have lost everything. Some franchisees paid more than $500,000 for a store.March 2016 - One of the Caltex suits, Bruce Rosengarten“Between Caltex and FFA, we touch many Australian lives across the nation and we look forward to celebrating Socceroo success with all the fans.
A key issue is the power imbalance, which can and does get abused.
Caltex is doing a wage compliance audit of its network of franchised stores. Under Caltex's franchise agreement, it can seize control of a station when there is even modest underpayment of wages without paying any money to the franchisee. So far it has taken over more than 100 stores and the franchisees have lost everything. Some franchisees paid more than $500,000 for a store.
The company blamed "unsustainable rent", "declining shopping centre performance" and a "sharp decline amongst domestic franchise sales and renewals" as the main reasons for its "disappointing performance".