Oz FCA franchisor and bank Linked in a Conspiracy?

September 2, 2008

In yesterday’s House of Representatives, Australian member of parliament Joanna Nash (Lib, Gilmore) read the following statement into the record:

In closing I would like to read into the record three succinct extracts from emails in regard to Baker’s Delight, and these can be produced.

The first is from Richard Taylor, Chief Financial Officer of Bakers Delight, to Simon Brookhouse, the Victorian and Tasmanian franchise manager for the ANZ Bank, dated 22 February 2005 in regard to Ms Deanne DeLeeuw who was still an active franchisee at the time. It read:

The South Coast bakeries group heads closer and closer to oblivion.
Is that not evidence that suggests plans had been conspired to terminate Ms DeLeeuw’s franchise well ahead of time?

The second email is from Jurgen Schnabel, Senior Manager of the ANZ Bank, in an email dated 10 March 2005. He wrote:
… we will accept whatever Bakers Delight decides to give us from the sale of Kiama and Vincentia, without question.
Does this not constitute some degree of collusion towards the premature but planned demise of this franchisee?

And finally:
… we have to consider the greater relationship with Bakers Delight given our overall exposure to this group within PM.
That was in an email from Simon Brookhouse of the ANZ Bank dated 10 March 2005. This was when the ANZ agreed to accept a nil return from Bakers Delight for the Shellharbour franchise.

These allegations have not been proven in a court of law.

  • Baker’s Delight is a member of the Franchise Council of Australia, FCA.
  • ANZ Bank is a member of the Franchise Council of Australia, FCA.

There is a very close relationship between franchisors and lending institutions in Canada (see Big Franchising, Red Flags: Predatory franchise lending, Suing a Bank (2)).


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