ASX-listed RFG has brokered a settlement with the ACCC after being accused of not disclosing to some franchisees that the stores they were buying were duds.
Peter George,brought in to save Retail Food Group four years ago,has a big challenge on his hands with new role at Booktopia.
The competition watchdog alleges Retail Food Group's franchisees were misled over the viability of stores in the network that includes Donut King,Michel's Patisserie and Gloria Jeans.
With fines so small they are failing to act as a deterrent,restaurants are getting away with poor food safety,which potentially puts customers at risk.
Tony Alford,who led the franchise group behind chains such as Gloria Jeans and Donut King,has walked away from his Federal Court case against the mastheads.
The company blamed"intense competition and changing consumer trends"for the downturn in operations at the scandal-fraught company.
An issues paper on franchising released by the government on Friday flags increased fines and an industry ombudsman.
Troubled franchisor Retail Food Group's longest standing director has resigned and will take on a dedicated role consulting to the owner of the Gloria Jeans,Michel's Patisserie and Brumby's brands instead.
A director at the struggling franchisor Retail Food Group raised conflict of interest concerns when she started her own private food brand and tried to sell her products to RFG's struggling Gloria Jeans,Michele's Patisserie and Brumby's cafe chains.
Retail Food Group's poor continuous disclosure could attract a class action as it battles other fights.
Troubled cafe and bakery franchisor Retail Food Group has defended the timing of when it told investors about a proposed bail-out deal,which it confirmed after its shares jumped 70 per cent in three days.