Meeting called as RFG action ‘close to’ proceeding
THE former RFG franchisee helping to instigate a class action against the embattled franchisor says they are close to obtaining the numbers needed to proceed with court action.
Last month law firm Corrs Chambers Westgarth announced it was investigating a possible class action against RFG on the basis it acted unlawfully when the company sold Michel’s Patisserie franchises.
The firm said former or current franchisees, who have suffered loss or damage, may be entitled to compensation as a result of the Gold Coast company’s actions.
It has scheduled a meeting at the Labrador Community Centre for August 14 and is asking franchisees to register their interest in the class action.
The action needs “a minimum number of franchisees and a minimum collective claim value” to proceed.
Robert Verni, who ran the Michel’s Patisserie store at Robina Town Centre before shutting shop in 2017 alleging RFG negligence, said the class action has been able to gather significant support in the past month.
“We are close to getting the numbers we need and that is very good,” he said.
“I am very happy that RFG has put its hand up to help people in dire straits but I know people that have not been helped.
“There is a lot of uncertainty for people because they are still in the system and they are scared.”
Mr Verni said franchisees can take confidence from the backing of Augusta Ventures – the UK’s largest litigation and dispute funding institution.
The Bulletin understands all Michel’s franchisees have been emailed by Corrs to gauge their interest in the meetings. Corrs says the sessions will be confidential.
An RFG spokeswoman said the company has not been approached by Corrs in relation to any potential class action.