ALLIED BRANDS CONTINUE TO WASTE CASH ON COMPANY OWNED SHOPS KNOWN AS UNSALEABLE DOGS

Allied Brands (ABQ) staff continue to reveal where much of the cash raised by the extra 100 MILLION SHARES ISSUED has been going.

The Baskin Robins portion of ABQ is reported to be running over nine shops that have been repossessed or abandoned by their former franchisees as unprofitable dogs. Many of these shops are in regional areas and are run essentially unsupervised - with young teenage managers being (under?)paid, no marketing being done, while company sales staff attempt to find new suckers to take over these failed shops.

Why is Allied Brands so desperate to keep these failed shops on the books instead of just closing them?

Insiders report that these shops haven't been closed because the master franchisor agreement with the US arm of Baskin Robins that requires store numbers to grow. So instead Allied Brands continues to lose $100,000 or more per year on each location --- what may be over $1,000,000 per year on these failed operations!

It is said a breach of this franchisor agreement is being investigated by Baskin Robins USA.

The manager at the company-operated Oasis Shopping Centre location on the Gold Coast has reported the store doesn't even stay open the same hours as the centre despite being a lease violation. Takings at this once successful shop now are said to be unable to even cover the rent at this high-profile location, less than a km from Baskin Robins head office.

This issue is just one of the cash drains on Allied Brands that are burning cash now at what looks to be a record rate. The "free" Bayswiss stores dumped on ABQ by the smart people at Freedom Furniture are also costing big money. With few new franchisees believing the furphys that spew from Allied Brands, the handwriting is clearly now on the wall.