The owner of Gloria Jean's, Michel's Patisserie, Donut King, Brumby's and Crust franchises has announced it will close up to 200 stores.
The owner, Retail Food Group (RFG) is reportedly also facing a potential class action from disgruntled franchisees.
While it has not outlined how many stores from each franchise it will close, the company's plan is to shut down up to 200 by mid-2019.
The group has cited "unsustainable rent", "declining shopping centre performance" and a "sharp decline amongst domestic franchise sales and renewals" as the main causes of its low performance.
RFG's shares fell by 36.3 per cent to $1.30 on Monday after it emerged from a two-day trading suspension for failing to lodge its first half results in time.
The company has also been accused of systemic wage fraud, exploitation and underpayment of workers.
Disgruntled franchisees have claimed they were forced into severe financial hardship due to a business model which demanded exorbitant fees.
