ALLIED BRANDS ANNUAL PACK OF LIES SHOWS MANAGEMENT CONTINUES TO LIE EVEN FACED WITH FACTS

Late Tuesday, at the very end of their deadline, Allied Brands Ltd. (ABQ) has released the 2009-2010 PRELIMINARY FINAL REPORT as well as 2010 RESULTS ANNOUNCEMENT. We expect a professional review of this document presently, but a cursory look at these reports show no cause for optimism.

On a cash basis, with slightly increased sales, profits are down 397% (hint: no profits, massive losses) as the result of in part a massive over-doubling of expenses to run the company. Same company, double the expenses. Administration and Employee expenses have both over-doubled - this the proximate cause for the company's failure. Cash has been pumped into senior management, employee, and director pockets, stripping the company of cash. And the increase in issued capital from $30.6 to $36.5 million during the year validates again the observation that the company has been bleeding cash, with every dollar raised going to operations and not the expansion of the company that was promised to investors. Of course since these "operations" are in fact money for management and directors, it's clear shareholders have been duped.

The company is out of cash, and living only on drawdown of $641,000.00 overdraft - an overdraft that's almost exhausted (or may now be, two months later).

This statement is unaudited as noted earlier. The note says "the auditors are currently assessing whether the Director's going concern assumption is appropriate". Since Hacketts has signed off on other lies from the company it's unclear if they are going to sign this new, obvious manipulation despite the fact that, currently, the company cannot pay its debts including the costs of closing stores in New Zealand and Australia. Can't pay debts "as they come due" is operating while insolvent. Something chairman Lachlan McIntosh should be familiar with as director of insolvency firm KordaMentha.

The statement released acknowledges that stores have been closed, but since it's going to take $3,000,000 to complete this closure and pay off the debts incurred, money the company doesn't have, any attempt to capitalise the company will require the lender to flush this $3 million down this dunny.

We understand as a result Westfield and other dudded landlords are threatening to push the company into liquidation. This report should show them they are again being lied to by Allied Brands.

LIES, LIES, LIES!

The company again uses tricky language about the Baskin Robbins shops. The company says the brand has "store on store growth", and "projections are promising". The actual numbers however show Baskin Robbins DROPPING in revenue from $14.4 to $12.4 in revenue - a whopping 17.8% decline! Even if the company wanted to keep this brand, they've shown a massive loss on Baskin alone of $2.3 million. If the company gives away all the brands except Baskin Robins and Cookie Man, it STILL can't operate profitably!

One other note - the company is under legal attack by "several employees", which the company has mysteriously left undetailed. This is as previously reported. One of these suits is believed to be a serious sexual harassment suit against an as-yet undisciplined Baskin Robbins manager and the company that tolerates this behaviour. Another suit is said to be for "misleading and deceptive conduct". Suits alone that are likely to cost millions.

Allied Brands is known for "misleading and deceptive conduct", so this employee allegation is a hit for six. It's their key operation strategy. It's hard to believe a company can have massive operational failures, in-house sexual and employee abuse, revolving door personnel, stock shortages, angry franchisees, destroyed families, deported migrants, dudded investors and vendors - and just say "excuse me". How can this be anything but fraud?

MISSING ANNUAL REPORT AND RUMOURS OF ABQ BREAK-UP CONTINUE TO COME FROM GOLD COAST HEAD OFFICE STAFF

Like last year, auditor Hacketts is resisting signing off on the annual report, with senior partners believing that Allied Brands (ABQ) is, and has been, trading while insolvent. And like last year, Hacketts is being managed by the two chartered accountants running Allied Brands, Sean Corbin and chairman Lachlan McIntosh. Allied Brands annual statement last year turned out to be a pack of lies, with the company bleeding cash and still going thru the motions of paying a dividend like any good pyramid scheme.

And we all know the accountant's motto: "Figures don't lie, but liars can figure".

Hacketts needs to ask itself what cost they will bear by signing off on more untruthful statements by this close-to-collapse entity. Shareholders will be looking for a deep insured pocket to sue when the truth of Hacketts so-called audits is revealed in an ASIC investigation.

Management continue to desperately try to flog off parts of the company including the discredited and broken jewel, Baskin Robbins.

Talks are said to be underway with dairy producer Parmalat, (Paul's Milk) among others. All of the potential purchasers have indicated that the management that some say is incompetent or criminal, not be part of the sale. It's said however the previous sacked CEO Shane Radbone (who, along with wife Victoria, have not repaid the sweetheart loan extended to them) signed longterm contracts with some of these same corrupt managers.

SHANE AND VICTORIA, WHERE IS ALL THE MISSING SHAREHOLDER MONEY YOU OWE? WHERE'S THE MONEY, MATE???

GOLD COAST FRANCHISEES OBJECT TO "SKANKY ROBBINS" REBRANDING BY NEW ALLIED BRANDS MARKETING MANAGER

A story about Microsoft's Gold Coast Australia conference in today's media has reignited Allied Brands (ABQ) franchisee objections to paid sponsorship of "meter maids" to promote the family friendly ice cream brand.

Microsoft said it had no idea the downmarket promotion "meter maids" it hired for its TechEd conference would be half naked, skanky-looking women. Microsoft wisely and quickly apologised to both offended staff members as well as attendees including large numbers of computer-professional women. One is quoted as saying "It seems that there are still marketing and promotional folks who consider objectification of women to be OK".

Yes Kate, there are those neaderthals - alive and well and working as senior management at Baskin Robbins Australia and Allied Brands. Franchisees around the Gold Coast have repeatedly pointed out to Allied management that this promotion is contrary to the family-centric image that is the driving sales demographic for the brand. And since the Gold Coast council recently started a blitz on meter maid's selling their own promotional items, the maids hover near the Cavill Road Baskin Robbins shop where council allows them to hawk their softcore porn calendars.

Franchisees have been refused information about how much is being paid the meter maids, and who at Baskin Robbins approved this use of franchisee ad fund money.

VENDORS WRITE AND DESCRIBE SUPPLIER KICKBACKS AT BASKIN ROBBINS AND ALLIED BRANDS (ABQ)

Several Australian vendors of supplies and merchandise used by Baskin Robbins, Cookie Man, and Kenny's Cardiology have contacted us over the years to describe pricing "rebates" (kickbacks) they've been forced to agree with before products will be approved for sale to franchisees.

In the case of three different product lines, these kickbacks have been confirmed by vendor sources. In the most willfull case, franchisees for Baskin Robbins were switched from high-quality imported product to local supplies, said to be cheaper. But the "rebates" demanded by Baskin Robbins management has meant these local products can be sourced more cheaply thru other suppliers - at up to 20% less than the "Baskin Robbins" price. Therefore these suppliers are seeing volume business they were promised turning to other vendors and cheaper pricing.

Another vendor of a specialty product has refused to pay the "rebate" demanded by the employee, and has reported that this same employee demanded the same type of rebate when working at Wendy's. The "rebate" was refused by this vendor at that time, as well. Clearly someone with some honesty AND backbone. However they've seen other vindictive actions taken against their company in retaliation.

What is yet unclear is who's pocketing these rebates. While rebating itself isn't a violation of the Trade Practises Act, failure to disclose the rebating IS a violation. Franchise agreements for Baskin Robbins Australia list NO such rebates. Therefore this practice is illegal, and is considered Unconscionable Conduct by the ACCC. In any event IT'S CLEAR THEFT FROM THE FRANCHISEES, LOWERING PROFITS THAT BELONG TO THE SHOP OWNER!

It could be however that management employees, in business for themselves, are in someway involved in these transactions for their personal balance sheets.

The rebating is extremely damaging to the franchisees and more importantly to the concept of franchising. The "appeal" of a franchise is supposed to be in part lower operating costs driven by "group purchasing power". It's obvious that if products being forced on Baskin Robins franchisees are available cheaper on the open market, something in the process has been seriously corrupted.

It is also likely that the master franchise agreement between Baskin Robbins America and Allied Brands bans rebating, meaning that another part of the agreement is in breach.

VENTURE CAPITAL COMPANIES NOW ENGAGED IN ABUSE OF WENDY'S FRANCHISEES, TOO!

An offshore venture capital company (aka "The Vultures") is now engaging in the same kind of franchisee abuse rampant at Allied Brands Ltd. (ABQ). VC squeeze of Baskin Robbins Australia has been primary cause of the collapse of franchisor Allied Brands.

Many Wendy's employees and Baskin Robbins employees have been trained in the same corrupt practices by the recently sacked CEO Shane Radbone who's said to be mates with Wendy's CEO Rob Mckay.

WENDY'S BUSINESS MODEL BROKEN

There are reports of other shops in trouble for the same reasons.

DUDDED OWNER DIES OF HEART ATTACK,

48Y OLD WOMAN

HOW THE BASKIN ROBBINS SHOP SALE SCAM OPERATES - ANATOMY OF A CORRUPT COMPANY ENTERPRISE

Here's how several migrant and Australian families lose hundreds of thousands of $$$ to Baskin Robbins and franchisor Allied Brands. End up sleeping rough. And how the scam is self-perpetuating, bringing in new suckers and new money to replace the old.

2005 - Korean migrants contact Baskin Robbins Australia because of advertising in Korea. They are sold a shop at Westfield Bondi Junction with a huge rent in a deadend area of the centre. Shop is barely profitable but family working 60 hours a week with no letup.

2006 - Baskin Robbins Australia management offers owners a "great deal" on a new, additional shop in growing upscale area of Rouse Hill, Sydney. The "great deal" is a shop filled with used and abused equipment previous sold to another failed franchisee and reclaimed by Baskin Robbins. This shop on second floor of new but busy little shopping area starts to get a good group of local customers with hard work by family and good local advertising. Profits from this shop used to offset massive losses at Bondi Junction shop so family leaving in squalor. Migrant support groups and extended family help out with food, expenses.

2008 - Despite the protest by this wonderful hardworking family, ABQ opens new Baskin Robbins - Cookieman shop at newly built Rouse Hill Town Centre - LESS THAN 1 KILOMETER FROM THE EXISTING ROUSE HILL SHOP! Company defence is "we don't have any duty to provide any protected area around any shop".

New Rouse Hill Town Centre Baskin Robbins / Cookieman sold to NEW family of suckers. Location is unsuitable for either daytime Cookieman customers or nighttime Baskin Robbins customers. Blind Freddie could see a place with eight branded coffee shops wouldn't be a good location.

Late 2008 - Migrant family loses both Rouse Hill and Bondi Junction Baskin Robbins shops. Allied Brands takes shop back (which has been resold as "almost new" to new suckers). Migrant family loses upwards of $400K thanks to the skill and success of Baskin Robbins Australia. Skill and success only at lying to potential new franchisees.

2010 - Rouse Hill Towne Centre now listed with Seek Commercial/Scan Business Brokers as "for sale" after current owners losing a thousands on this dud location. Seek Commercial is the agency, with the franchise division Scan Business Brokers headed up by someone named Paul Tiller, used to find new suckers for the failing shops that plague Allied Brands. This allows Baskin Robbins management to disavow anything that Seek Commercial tells prospective new suckers. In the Rouse Hill advert, Seek says "Looks and performs beautifully with huge potential to grow with a dedicated owner operator." Doubletalk that makes it seem like the first owners are lazy arseholes and all that's necessary is some REAL work. It's likely that this is just a dud location and will never perform despite who the franchisees are. Shop is listed for HALF of its new cost, losing the franchisees a cool $150K in two years.

AND DESPITE KNOWING THIS IS A DUD, OVERPRICED, AND UNABLE TO PERFORM LOCATION THEY'VE STILL ALLOWED SEEK COMMERCIAL TO FIND NEW FAMILIES TO RAPE AND PILLAGE!

So far, two families down $600K or more. Baskin Robbins and Cookieman make hundreds of thousands. And Allied Brands is hoping that Rouse Hill doesn't get sold again by Seek - because when they take it back, they can sell it for $300K again!

And keep in mind, this kind of damage has been inflicted on at least a 14 families that have contacted us already. It isn't a mistake, or a one-off. It's organised racketeering. And once families have been stripped of all their cash, they've got nothing left for legal action. A sweet racket, really.

And all of the criminals involved are still working for Allied Brands. . .or maybe on their way back to Wendy's. Unconscionable Conduct without question.

ABQ HAS ANOTHER BRAND MANAGER WHO WANTS HIS COMPANY BACK FROM THE VULTURES - MEET THE ELLIGETT'S

The latest victims in the Allied Brands (ABQ) debacle are Peter and Sharon Elligett, who were owners of the successful Cookie Man company prior to their decision to "cash out" and sell to ABQ.

The Elligett's were highly respected by their franchisees and operated under the mantra "our culture is supporting the franchisees". Peter and Sharon have seen their work and reputations destroyed at the hands of Allied Brands, who's corporate mantra is "our culture is screwing and gutting the franchisees". Before buying the successful Cookie Man chain in 1997, Elligett was a respected senior manager at McDonald's, and oversaw tremendous growth in the chain.

It was international growth that drew the Elligett's into the Allied Brands corporate web. They believed management when they were told Allied would underwrite massive international expansion of the brand. In fact nothing of the kind has occurred, but instead existing franchisees have been filleted for more cash to feed the ABQ cash-burn machine.

Now the Elligett's just want their company back from ABQ, and have told interim CEO Sean Corbin this in the last two weeks. They've seen their franchisees turn against them as Allied forced thru large and unwarranted pricing increases on everything from frozen cookie dough (you thought these biscuits were fresh? ha!) to basic supplies and other goods. Peter Elligett repeatedly warned Allied management in his role as director that these cost increases would serve to drive profitability down - both for the franchisees and the company. THIS HAS PROVEN TO BE CORRECT, and is the same situation that has so damaged the Baskin Robbins brand. With collapsed profitability, new shops are unsellable and existing franchisees have become demoralised and unmotivated. Existing shops are unsellable as they are showing little to no profit now. CEO Corbin claims they are planning to "reinvigorate" the brand - ABQ code words for "do nothing and let the franchisees rot".

The Elligett's have also seen their good name ruined, as managers with Baskin Robbins sold "dual brand name" shops that had no chance of success. Some Cookie Man locations are selling barely $50 per day in coffee and stale, overpriced biscuits.

The Elligett's also have seen their holding of ABQ shares collapse. As has everyone else.

Let's hope the Elligett's can get their shops back from this toxic company, Allied Brands Ltd.!