'Immoral and illegal': Inquiry warns against threats to Muffin Break and Jamaica Blue franchisees

A leaked letter from Foodco Group, the franchisor behind Muffin Break and Jamaica Blue, has attracted the ire of the parliamentary inquiry into the Franchising Code of Conduct.

The letter was sent to all franchisees and claims Foodco welcomes the inquiry but then goes on to warn franchisees of "unsubstantiated allegations" against Foodco.

"I assure you we will be taking the appropriate legal action against any person who has made unsubstantiated defamatory claims against us," Foodco says in the letter.

"We will protect our reputation at all costs and in doing so, protect our brands and the businesses you have all worked so hard to establish. False allegations have also been made against the ACCC (Australian Competition and Consumer Commission) and the FCA (Franchise Council of Australia) and I expect that they will also act to protect their rights."

Potential criminal offence

Senator Deborah O'Neill, deputy chair of the parliamentary inquiry into franchising, says she is very concerned by the letter.

"Silencing, by implied or actual threat, those who want to speak up and inform the democratic processes of the nation is both immoral and illegal," she says.

Parliamentary resolutions forbid interference with witnesses "by fraud, intimidation, force or threat of any kind" or any influence in respect of any evidence to be given or to induce someone not to give the evidence. Read more

Cara Waters - Brisbane Times - 20 May 2018