1-800-RADIATOR Franchising Fails to Renew Its Franchise Registrations

1-800-RADIATOR FRANCHISING, following the recent establishment of a hotly resisted independent franchisee association, has failed to renew its franchise registrations in the registration states. Its registrations have all lapsed. The company is on a December 31st accounting year, and will not likely be able to renew based upon its year end financial statements.

Footnotes in its previous financial statements indicate that its parent company, RADIATOR EXPRESS, takes out a fee in the amount of between $ 11 and $ 12 Million a year to compensate itself for providing the support for all franchise operations.

Counsel for the RADIATOR FRANCHISEE ASSOCIATION, INC., questions whether this indicates that the franchise company is being used as a front for the parent company and that it is the parent company that is the real franchisor. If that is the case, the parent company’s certified financial statements may have been improperly excluded from all the franchise disclosure filings made by this franchise organization to date.

Reasons given by the company, per Joe Rippey, its president, having to do with inconvenience are being challenged by the franchisee association’s Counsel and Managing Director, Richard A Solomon.