Michael Sherlock, one of the founders of Brumby's Bakery chain owned by troubled Retail Food Group, says he is not surprised by the serious allegations about the company raised by a parliamentary inquiry, and believes many franchise operators should not be listed unless they put franchisees' profitability ahead of shareholders' interests.

Mr Sherlock, who made a submission to the inquiry and testified in Queensland, reluctantly sold Brumby's to RFG in 2007 for about $36 million. This followed a failed attempt at a management buyout of the company with others in a syndicate.