Leading Australian retail food brand manager and franchisor Retail Food Group Limited (RFG) today announced that it had reached agreements by which the Brumby’s Bakeries master franchise territories for North Queensland and New Zealand will be reacquired and the Donuts Coffee & Muffins franchise system would be acquired.
“The Brumby’s North Queensland master franchise territory represents the best performing Brumby’s territory in Australia”, RFG CEO Tony Alford said during the Company’s AGM today, “further, acquisition of the New Zealand master territory completes the re-acquisition of all master rights in that country so that the whole of the network therein is now ‘company managed’”.
There are presently 37 outlets within the Brumby’s North Queensland territory and a further 19 outlets in New Zealand. “The transaction will deliver the equivalent in terms of EBIT contribution of an additional 26 new Brumby’s Bakeries outlets”, Mr Alford said. “Given the outlets forming part of the North Queensland and New Zealand master franchise territories already form part of the Brumby’s Bakeries system, integration of subfranchised outlets under RFG’s franchise service and operational support systems will be seamless in comparison to that which would apply if an independent network had been acquired”.
Mr Alford noted that the Company’s Donut King, Michel’s Patisserie, Brumby’s Bakeries and bb’s café franchise systems had continued to achieve positive growth in terms of weighted average weekly sales (2% YTD) and weighted average transaction values (3% YTD).