Baskin Robbins Franchises Lodge ACCC Complaint for Unconscionable Conduct

We've received several reports from Baskin Robbins franchisees that their wholesale ice cream price paid to Allied Brands Ltd. is now "floating" with changes in the US$-AU$ exchange rate.

A prominent franchisee solicitor firm at Surfers has been hired to fight on behalf of a large (majority) group of franchisees.  

It is alleged in the complaint filed with ACCC that Allied Brands Ltd. has engaged in unconscionable conduct in this action, violation of ACCC laws on trade line forcing, and false disclosure to the franchisees.

Who in their right mind would sign an agreement for a franchise if the franchisor told them their price for their ice cream can change WEEKLY???

Have you ever seen McDonalds, Wendy's, or any other QSR franchise adjusting their pricing WEEKLY?  It's crazy!

And as one franchisee has pointed out, Allied Brands Ltd. (ABQ) made a promise to their shareholders in the original prospectus that the pricing on ice cream and other imported goods would be "currency hedged" - this means that the pricing stays the same no matter the rise and fall in the currency exchange.  Kinda like buying insurance.

Seems like ABQ hasn't done this, not just screwing their franchisees but also screwing their shareholders.  Shareholders obviously lose big when their businesses are forced to RAISE retail pricing in a deflationary environment - brands like Wendy's are lowering prices to expand market share.  Baskin Robbins Australia shops, forced to RAISE pricing because of Allied Brands incompetence, are LOSING market share.

Could be why Allied Brands Ltd. (ABQ) stock is now sitting at .18 a share, a massive collapse and far greater than other companies in this same business in Australia.  It isn't the sharemarket, it's Allied Brands!