April 22 - Bakers Delight has been cleared by the Australian Competition and Consumer Commission of allegations relating to complaints by a number of disgruntled former franchisees. The allegations were highlighted by Federal Member of Parliament Ms Joanna Gash, in March 2007.
The decision by the ACCC was made after “an in-depth investigation” spanning 12 months. As expected, Bakers Delight was cleared of any wrongdoing, the outcome of the investigation showing no evidence to support the allegations.
According to the ACCC, the evidence “…did not demonstrate that Bakers Delight had engaged in unconscionable conduct or breached the franchise code.”
The decision by the ACCC found that key allegations were unsubstantiated.
The ACCC “…concluded that there was no evidence of churning within the Bakers Delight system.”
In addition the ACCC “…did not find any evidence that there was inappropriate sharing of information or any wrongdoing on behalf of any of the banks or Bakers Delight in this regard.”
Bakers Delight has fully cooperated and assisted the ACCC throughout the investigation. The company welcomes the opportunity to have ongoing dialogue with the ACCC with a view to further strengthening its already well developed trade practices compliance systems and franchisee dispute resolution procedures.
It’s in our best interest to work with and support our franchisees, it’s pivotal to the success of the entire network,” said Richard Taylor, Bakers Delight Company Secretary.
“The company has not grown to what it is today without a strong network of franchises, their success is our success,” he said.
Over the past 28 years Bakers Delight has grown to become the world’s most successful retail bakery chain with 700 bakeries and 500 franchisees, employing 15,000 people, serving 2.5 million customers each week across four countries.
The strength, reputation and proven business formula that characterises the Bakers Delight franchise network contributes to a healthy business success rate of over 90%, compared to an independent small business with a 20% chance of success in its first five years of operation.