A mooted class action against beleaguered franchise chain Retail Food Group has been dropped after Bannister Law, the law firm representing the franchisees, said it was unable to fund the case.
Retail Food Group controls major brands such as Gloria Jeans, Crust Pizza, Brumbies Bakeries and Donut King.
In a letter to applicants, Charles Bannister of Bannister Law, said the law firm had been continuing its investigations into a potential class action against Retail Food Group.
The investigation had looked at the disclosure provided to franchisees when they purchased a franchise, any representations made to franchisees, the operation of affairs under the franchise agreement, and any potential breaches in the franchise conduct of conduct, the Australia Consumer Law and the Corporations Law.
Bannister Law engaged franchisees and consultancy and research group Franchise Redress to provide assistance on the class action but the partnership is no longer continuing.
Michael Fraser of Franchise Redress said on a number of occasions Retail Food Group franchisees told him they attempted to make contact with Bannister Law.
"Franchise Redress has begun exploring other options for the hundreds of franchisees impacted by the practices of Retail Food Group in the hopes that they can be compensated and begin rebuilding their lives," Mr Fraser said.
A spokesperson for Retail Food Group declined to comment. Bannister law was contacted for comment.
Cara is the small business editor for The Age and The Sydney Morning Herald based in Melbourne