Shares in the Retail Food Group (ASX: RFG), owner of Gloria Jean's, Donut King and Brumby's Bakery brands, have fallen to a five-year low amid accusations it is running its franchisees into the ground.

A Fairfax Media investigation has claimed RFG is charging crippling franchise fees and other costs to boost profits, allegedly driving some franchisees to bankruptcy, destroying marriages and leading to systemic staff underpayment.

The RFG, the country's biggest food franchise operator which owns Crust Pizza, Pizza Capers and Michel's Patisserie, has rejected the accusations.

However, shares in RFG fell to a five-year low on Monday.

At 1130 AEDT, its shares were down 99 cents, or 22.5 per cent, at $3.41.

RFG denied it was not supporting its franchisees.

"We reject this assertion and reiterate the fact that our success depends on the success of our franchise partners," the company said in a statement.

 

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