Franchise inquiry slams Retail Food Group

Gloria Jeans and Donut King operator Retail Food Group has been slammed by a parliamentary inquiry over its treatment of franchisees, with management accused of being either "unethical" or "incompetent".

The inquiry into franchising's inquiry's final report, released on Thursday, said Retail Food Group repeatedly refused to release documents that could have shown whether it knowingly sold failed franchise locations and opened others knowing they would severely hit nearby franchisees.

"RFG may not only have engaged in unethical business practices, but may also have misled parliament. The other possibility is that RFG, its board and management were incompetent," the report said.