The really awful news!
Have you been reading about the chaos surrounding the demise of Allied Brands? Franchisingplus believes that this debacle is a blight on the franchising sector.
The company's shares remain suspended from trade on the Australian Securities Exchange, its Cookie Man chain is in the hands of liquidators and reports from disgruntled creditors are growing.
The company is also locked in a dispute with the global owner of the Baskin Robbins brand, US company Dunkin Brands.
To add to the chaos The Department of Immigration & Citizenship has accused Allied Brands of breaching immigration laws by running an elaborate immigration rort where it sponsored a group of Korean nationals to work in administrative roles under 457 visas, put them to work in Baskin Robbins stores and in some cases sold Baskin Robbins stores and in some cases sold Baskin Robbins franchises to their family members.
To add to the bad press, the CEO admitted last week that the company has fallen behind on some employee's superannuation payments with employees acknowledging they have little hope of being recouped for their losses.
Any prominent negative media story like this affects all franchising personnel:
These bad news stories only reinforce why creating and then maintaining responsible, sustainable franchise systems is so vital for the benefit of the reputation of franchising and all involved in the franchising sector.
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