The consumer watchdog should be given new powers to police the franchising industry,according to a parliamentary inquiry which has also called on the corporate regulator to watch the scandal-prone sector more closely.
Robert Verni says he will never fully recover from buying a cafe from franchising giant Retail Food Group in 2006.
A powerful parliamentary inquiry found RFG's'high risk'business model relied on buying new brands,stripping out costs,'exploitative fee gouging'of franchisees and slashing services.
The report draws parallels between the $170 billion franchising sector and the behaviour uncovered in the banking royal commission.
A report into the $170 billion franchise industry is set for release days after a report into rampant wage fraud across the economy. Both reports are related.
A report into foreign worker exploitation has been backed by the federal government.
The troubled owned of Gloria Jeans and Donut King has fallen deeper into the red,after its retail sales fell further and it took a scalpel to the value of its brands.
The troubled franchising giant has been forced to talk down expectations of how much it can raise by offloading some of its brands,as it works to reduce its debt.
RFG will again have its covenants tested in March following its December,September and June waivers.
Former Retail Food Group chief Tony Alford and Alicia Atkinson have launched a new business based in Toowoomba which pasteurises eggs.
Retail Food Group's boss has resigned after less than a year with the struggling coffee,doughnut and pizza giant,as it goes through a"major restructuring"to stabilise itself.