RFG = Corporate Black Widow?, page-9

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Cheapy

196 Posts.

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11/03/18

14:47

Post #: 31671001
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Originally posted by danbradster ↑

1) Instead of fulfilling a dream to own their own business, they were gouged every way they turned. Franchisee fees, royalties, training, marketing fund fees and paying top dollar to RFG for supplies left them with little or no money to pay themselves or their workers.

To me, that sounds like the ACA-style beat-up way of saying 'the economics didn't stack up for that store'. However, the economics could stack up for a normal proportion of franchisees, which would mean the fees are normal rather than 'gouging' etc.

If somebody shows that RFG's fees are higher than their competing franchisors, or that they have an abnormally high failure rate, then I'd believe it rather than being skeptical (as I am for every story run through ACA, and SMH is sounding awfully similar).

3. Potentially bad, potentially not. It depends if the store failed because of a weak franchisee, or an unsuitable location.

I am stating the reality, that there is another side to the story. SMH is writing one-sided beat-up articles to sell papers. I'd still like to know the true proportions though, to know if RFG has an abnormally high failure rate.

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So hard to know where the truth lies, with the plaintiff represented by SMH and ACA and the defendants represented by RFG management, who perhaps don't live up to the most ethical of standards.

If I wasn't a shareholder, I would say it's about as entertaining as an episode of Judge Judy.

RFG Price at posting: $1.19 Sentiment: None Disclosure: Held
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RFG = Corporate Black Widow?, page-9

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