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AAP
AAP
National
Finbar O'Mallon

Major cake shop owner settles, pays $10m

Gina Cass-Gottlieb said the settlement was more beneficial for franchisees than more litigation. (Bianca De Marchi/AAP PHOTOS) (AAP)

Franchisees of some Michel's Patisserie shops will have their debts wiped or be repaid as part of a $10 million settlement brand owner Retail Food Group has reached with Australia's consumer watchdog.

The settlement came after the Australian Competition and Consumer Commission alleged in court RFG sold franchises to people knowing they were operating at a loss.

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