Do we like them?

Do we like Gloria Jean's Coffees?

Global franchised coffee-shop chain, founded in the Chicago area in 1979. It is run today from Australia by Retail Food Group.

Our score: 4 out of 10. Not one we'd back with our money. The ACCC accused its owner of unconscionable conduct toward franchisees, and the chain has had big closures. The settlement carried no penalty.

Gloria Jean's started in 1979 as a small coffee and gift shop near Chicago, founded by Gloria Jean Kvetko. Ownership has changed hands several times since. Today the brand sits with Australia's Retail Food Group, which runs more than 2,400 outlets across nine brands.

RFG hit a rough patch in 2018. Inside Retail reported a $306 million loss. RFG then said it would close around 250 domestic stores across brands such as Gloria Jean's. Franchisees told media they weren't told which stores were closing, and one said they would withhold franchise fees.

In December 2020 the ACCC took RFG to the Federal Court. It alleged unconscionable and misleading conduct over the sale of 42 loss-making corporate stores to incoming franchisees. It also alleged that franchisee-funded marketing money was used for non-marketing costs.

The case ended in 2022. The proceeding was dismissed with no admission and no penalty, and a court-enforceable undertaking was accepted. These were allegations that were never proven in court. Still, the franchisee relationship is the main worry, so we land at a cautious 4.