RFG franchisee lawsuit dropped

gloria-jeansA class action lawsuit against Retail Food Group has been dropped by Bannister Law, the firm representing dissatisfied franchisees.

A statement put out by consultancy and research group Franchise Redress noted that the law firm announced on Monday it would not continue the investigation based on the merits of the case.

The statement also goes on to state that multiple franchisees had attempted to submit evidence to Bannister Law, but never received a response.

“[This] experience is consistent with our own attempts to set meetings with Bannister Law to put them in front of key people who could provide crucial evidence, to which we received no response,” reads the statement.

“A number of franchisees have expressed concern that Bannister Law came to a conclusion without viewing much of the evidence.

Michael Fraiser, co-founder of Franchise Redress, noted on twitter that “we are in the process of setting new meetings about a proposed class action for hundreds of Retail Food Group franchisees.

“There is strong evidence that has yet to be seen by lawyers.”

The dropped lawsuit is good news for RFG’s new CEO Richard Hinson who recently said the scandal-plagued franchise sector needs to “get ahead of the curve” on public sentiment.

“We are focused very heavily on rebuilding trust within our network. It’s trust and transparency as much as anything else,” Hinson said at a recent QSR industry forum.

“Disclosure documents and the level of information provided is critical, but equally it’s about the support we provide those franchisees, so there’s a need for an increased level of support in this particularly tough retail environment.”

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