News What to for unethical business models, should we Boycott RFG stores and other unethical products?!

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TheSierBear

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I'm no businessman so not sure what a boycott does to the franchisees, but they are stuffed. It would seem that there's going to be a streamline of litigation against RFG group. I think we as a society need to be more aware of white collar criminals and white collar crime in general, and to live ethically, that is don't support business models in any way or form such what RFG has been exposed for.

http://www.smh.com.au/business/reta...ustralias-franchise-king-20171207-h00lbl.html

How do poeople feel that Tony Alford has wealth in the hundreds of millions? What do you believe is in store for him from here with all this publicity? Visits from bikies?

As the saying goes, live by the sword die by the sword, he started out by stealing Michael Hutchence assets and had associations with the Calabrian Mafia.

http://www.smh.com.au/business/reta...hind-a-franchise-fortune-20171208-h0180x.html
 
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Schraderbrau

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I'm no businessman so not sure what a boycott does to the franchisees, but they are stuffed. It would seem that there's going to be a streamline of litigation against RFG group. I think we as a society need to be more aware of white collar criminals and white collar crime in general, and to live ethically, that is don't support business models in any way or form such what RFG has been exposed for.

http://www.smh.com.au/business/reta...ustralias-franchise-king-20171207-h00lbl.html

How do poeople feel that Tony Alford has wealth in the hundreds of millions? What do you believe is in store for him from here with all this publicity? Visits from bikies?

As the saying goes, live by the sword die by the sword, he started out by stealing Michael Hutchence assets and had associations with the Calabrian Mafia.

http://www.smh.com.au/business/reta...hind-a-franchise-fortune-20171208-h0180x.html
yeah i'd guess that boycotting the franchisees does more damage to the victims than anything else.

problem with fraud is that the criminal standard of proof of beyond reasonable doubt makes them very difficult to successfully prosecute so often the police won't prosecute unless they have a case/ evidence handed to them on a silver platter. instead the preferred course is usually to go after them civilly because the standard of proof is probabilities and also wider variety of conduct captured, not just fraud.
 
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TheSierBear

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"
yeah i'd guess that boycotting the franchisees does more damage to the victims than anything else.

problem with fraud is that the criminal standard of proof of beyond reasonable doubt makes them very difficult to successfully prosecute so often the police won't prosecute unless they have a case/ evidence handed to them on a silver platter. instead the preferred course is usually to go after them civilly because the standard of proof is probabilities and also wider variety of conduct captured, not just fraud.

Yep, I agree with this. The bolded part what are some examples you can think of, I am getting sham contracting, but that won't get the big dogs at the top in this saga, I know nothing of the sharemarket but RFG did dodgy stuff there, price fixing? Hope so. I know the fines would be huge!
 

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I read that article on the weekend. It is certainly frightening to think how people can so easily get nutted for their life savings. I recall reading an article many years ago along similar lines, where the Franchisor (without naming names, lets call them "Pedders"), were accused of absolutely filthy behaviour. Selling the Franchisee the business, then systematically reaming the s**t of them until they were basically broke. Things like demanding over the top stock levels, unnecessarily "updating" computer systems costing thousands, refurishment of stores, etc. Also allegedly stocking stores with dodgy parts, which the Franchisee were forced to replace under warranty (included inherited warranties for previous owners). Once the poor buggers were bankrupted, they would buy the franchise back for bugger and then sell it to the next poor bunny, only for the process to repeat itself.

There are anough of these stories around however to wonder how people ever get lured in. Look at how many Jim's Franchises are for sale at any one time. Can't be coincidental. I don't know if the business practices of RFG and the like are fraudulent. They are not silly and I imagine they tow a very fine line. But they definately seem predatory and unethical.
 

Schraderbrau

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"


Yep, I agree with this. The bolded part what are some examples you can think of, I am getting sham contracting, but that won't get the big dogs at the top in this saga, I know nothing of the sharemarket but RFG did dodgy stuff there, price fixing? Hope so. I know the fines would be huge!
i don't really know much about franchises and companies either but i'm pretty sure there are a lot of ways they could be gotten civilly. There probably should be something in the franchise contract that prevents them from doing this though. They could also be breaching their duties as company directors I guess. The articles don't really provide any direct evidence of fraud, just a bunch of franchisees saying they've been screwed and some alleged past shady conduct in other businesses.
 

TheSierBear

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Due diligence....

Correct, and the franchisees are also buying into franchise businesses that does no good for the purchasers, only helps australians overall to reach to be the podium winners for diabeties and obesity.
Then there was the guy who was shocked he'd have to get up at 2am for the brumbys he bought. What an idiot!

But, that still doesnt mean the franchisors should bahaive in such a way if they can get away with it, and i know thats not what you said or how you think about it, who would?
 
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Pirtek have had many confidential settlements with franchisee's over the years
I know of one that cost them $150k and it was considered to be a small one at the time
 
Due diligence....

The problem with franchises, is that pretty much by definition the people who buy them don’t know what due diligence is. That’s why people buy a franchise, because they want to run a business, but they don’t know how to, so they need a leg up to run one. Franchisees are vulnerable.

There has been some calls for a senate inquiry into the industry. The article linked in the OP claims it is a $146 billion industry, so it’s serious business.
 
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Due diligence....
Except that after the business is purchased the franchiser moves the goal posts and start to enforce every little clause that most people would have never thought would be enforced.
Due diligence is fine when dealing with people who have morals. This company has shown they lack morals.
 

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