RETAIL FOOD GROUP TO BUY ALLIED BRANDS???

Persistent rumours in the share market report that Retail Food Group Australia (ASX: RFG) are undertaking a hostile takeover of Allied Brands Ltd. (ASX: ABQ). What does this mean to current and former Baskin Robins franchisees?

RFG looks to be a well-managed company, unlike the current mob at ABQ.

Franchisees with Donut King and BBcafe seem to be fairly satisfied with the performance of their management, unlike the current mob at ABQ.

It would seem however that while some parts of Allied Brands would be a good "fit" for Retail Food Group, serious conflicts of interest exist between Baskin Robbins (and parent company Dunkin Brands) and RFG's operations.

Among other things, the Donut King operations in China would be a direct attack on Dunkin Brands expansion of Dunkin Donuts in China.

And you have to wonder if Retail Food Group managment Tony Alford is aware of the shaky viability of 1/3 or more of the Baskin 31 shops in Australia. Their due diligence has yet to examine any of the Baskin shop franchisees, and the as yet unpublicised litigation on foot.