Food and beverage company Retail Food Group (RFG) has entered into a binding deed to settle the class action filed by some of its former franchisees.

The settlement, subject to court approval, involves a dismissal of the proceeding by the applicant without RFG making any admission or payment, the company said.

However, as part of the agreement, RFG will release applicable members of the class action from historical debts alleged in the proceeding. The company affirmed this move has no impact on its annual financial results.  

Headquartered in Queensland, RFG is a multi-brand retail food franchise manager, with brands including Gloria Jean’s, Donut King, Brumby’s Bakery, Michel’s Patisserie, Crust Gourmet Pizza and Beefy’s Pies.

In October 2021, certain franchisees and former franchisees of the Michel’s Patisserie brand commenced the class action lawsuit against RFG and two of its related entities. 

The proceedings were about changes implemented to the supply chain between 2015 and 2016, and alleged breach of the Franchise Agreement, contraventions of the Australian Consumer Law and the Franchising Code of Conduct, the company said in its previous statement. The class members were seeking damages, declarations, interest and costs.