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For years Bakers Delight has kept it's dirty secrets out of the spotlight leaving a pathway of destruction in it's wake. This website is a must read for anyone contemplating buying or working for a franchise like Bakers Delight. For over one hundred franchisees bankrupted over the last few years and hundreds of others still stuck in the system holding on to what is left of there investment it's too late. Don't be fooled by the glitter and glamour. Bakers Delight is a company that has it's roots deeply embedded in it's cult-like beginnings of control and deception.

Last week the Parliamentary Joint Standing Committee on Corporations and Financial Services announced they were conducting an inquiry into franchising. This is a federal level inquiry and is Australia wide.

Bakers Delight has attempted to censor the information contained within this website by filing a complaint with The World Intellectual Property Organization(WIPO) .

Bakers Delight Complaint

WIPO Decision against bakers delight

Any enquiries contact Andrew

Must read links

Franchise Fraud: Documents the tricks and traps of the franchise industry. How they use your money and risk to secure their future.

the FranchiseFool: Understanding franchising by Les Stewart MBA

The Blue Mau Mau Website: A reference point for anyone contemplating buying a franchise

Great Quotations

Timothy  Bates 

“Knowledgeable scholars who study franchising issues routinely express contempt for the failure rate statistics publicized by franchisors. Francine Lafontaine, for example, states ‘one of the major selling points of franchising to franchisees over the years has been the statistics vehiculated by the trade press on the very low failure rates of franchised businesses compared to independent operations. These statistics never had real scientific basis’ (p. 14, 1994). Such criticism does not deter the industry.”
Survival Patterns among Franchisee and Nonfranchised firms started in 1986 and 1987, U.S. Department of Commerce, p. 6. Professor Timothy Bates , Analysis of survival rates among franchise and independent small business startups, Journal of Small Business Management, Milwaukee: Apr 1995, Vol. 33, Iss. 2; pg. 26, 11 pgs

"Franchisees have it easy, right? Somebody else comes up with the idea, provides training, helps with site selection, and offers other advice and services. The fact is, on closer examination your future as a business owner will be a lot brighter if you run your own company" Look before you leap, The Center for Economic Studies, U.S. Bureau of the Census, Wayne State University, Detroit, Professor Timothy Bates.

What Bakers Delight say!

"The strength, reputation and proven business formula that characterises the Bakers Delight franchise network contributes to a healthy business success rate of over 90%, compared to an independent small business with a 20% chance of success in its first five years of operation". Bakers Delight press release 2008

Gillian K. Hadfield

For many chain builders franchisees serve as cannon fodder, foot soldiers to be expended in battle. If the company thinks there might be a market for a product in a certain area it can find operators who will invade the community. If the experiment fails and the franchisees go bankrupt, well, that’s too bad – in business there are always risks. In thisway tens of thousands of individuals have lost their investments.
Problematic Relations: Franchising and the Law of Incomplete Contracts, Stanford Law Review, 1990.

Roger Gillespie

Roger Gillespie made a presentation in February 2008 to the productivity commission inquiry
in his dual roles as president of the Australian Retailers Association and executive
chairman of Bakers Delight Holdings Ltd. Roger Gillespie discusses landlord rebates
and unequal bargaining positions.

The ARA states that there is a Master-Servant culture that exists in tenancy relationships.
Mr Gillespie goes on further to define the people under licences as
"modern day slavery".
"They are locked in their".
Mr Gillespie then states
"You are dead right". "They have (tenant/franchisee) put their one, two or three hundred thousand into buying that location".
"I'm not going to let it go because I mortgaged my house to get it and so they will
work 12 hours a day until their marriage breaks up and they sick because they have got to adjust by abusing drugs or alcohol or whatever and the whole thing falls in a heap". "Then the next sucker comes along and says, Oh, thats a good idea, I will go in there and make a fortunate and everyone lives in hope".

In his own words, from his own experiences, the executive chairman of Bakers Delight has just perfectly described churning.

Bakers Delight Facts