Boroian Speaks Out on IRS Woes, Moving Forward

Industry's Maker of Franchise Chains, Donald Boroian, Gives Exclusive Interview. Discusses "New" IRS Personal Tax Lien Against Him of $0.8 Million, Imprisonment and "Blogs"

OLYMPIA FIELDS, Ill. (Blue MauMau) - The Internal Revenue Service has now recorded a tax lien as of August 8, 2007 against Donald Boroian for the amount of $809,966, according to the Cook County Recorder of Deeds website. Boroian is founder and owner of Francorp consulting firm, a major creator of start-up franchise systems. In an interview, Boroian explained that the IRS lien is just part of the original court action. "There is nothing new there. The IRS is just posting it."

As previously reported, there was already approximately $1.3 million in liens against Francorp for unpaid payroll taxes, but he said that is not the correct amount owed. "We have paid considerable amounts and you can talk with the IRS yourself."

Mr. Boroian explained that the reason the original amounts of the liens are still on there is because the IRS does not reduce it until every penny is paid. He said, "Even on the Offer in Compromise it is significantly less. You have to continue to make timely payments on your Offer of Compromise or they can go back to the original amount. That's always an incentive for you to make your payments, which we have been doing for the last two years."

Boroian had been given a one year, one day sentence for tax evasion, which began on July 27, 2006, at Duluth Federal Prison Camp in Minnesota. Although he was scheduled to be released for good behavior early in the year, prison officials launched an investigation into allegations that he was conducting business from his cell, which was a federal violation. Numerous sources stated that he was involved in telephone and conference calls with clients, prospects and staff almost on a daily basis. They also alleged that two staff members were making trips to Duluth to deliver mail and documents and confer with him. As a result of the prison investigation, Boroian was placed in solitary confinement for six weeks. After he was discharged from Duluth, he was placed in a Chicago halfway house, and on July 13 he was then released to a two-year supervised probation period to complete his sentence.

Boroian Addresses Previous Articles and Blogging

In the interview, Boroian pulled no punches in saying that he didn't have anything to hide. "It is what it is. But we have a viable company and this year we will probably do about $9 million. Last year we did about $1.2 million. Sales are increasing regularly." He said their clients were successful and they are selling franchises. And, their operations continue to increase in effectiveness and excellence. He touted, "It's what we have been doing for 31 years here." Boroian feels his obligation is not to the people who want to know what he is doing, those who have no vested interest in his company. He said, "My obligation is to my clients to see to it that we do a good job for them."

But he also addressed another issue. "While all this has been going on, these articles and these fake blogs that are posted by people who purport themselves to be former clients, or this and that, we know where they are coming from. There is no point in going on and acknowledging these kind of false and scurrilous comments because we can't win." He said they come in as guests instead of standing up and saying, My name is so and so, and I hired Francorp and they didn't do a good job. "That would be one thing, if they identified themselves. We know the source, and you know the source."

Accepting the Blame for Past Mistakes

But in dealing with his past problems--his imprisonment and paying off tax lien debt--Boroian said he has made his mistakes and now he is paying for them. He asserted, "I'll stand there while they throw their tomatoes and eggs at me for whatever reason, and that's okay. I'm perfectly willing to accept the consequences of what I have done." But he said he is not the first in the franchise community to go through this situation. "I don't see the IFA throwing out Carl Karcher who was sent to prison, or Alfred Taubman of A&W fame on his problems with Sotheby. The chairman of 800-Mattress also went to prison." (Editor's note: Facts or claims by the interviewee have not been substantiated by this journal.)

But Boroian again states, "Whatever it is, it is. Like my mom used to say, you made your bed now sleep in it. I'm not blaming anybody but myself for what I have done. But one thing no one can say through all of this is that we haven't fulfilled our obligations fully to our clients."

In closing, Boroian said, "The only judges I have in this world are God and my clients. And maybe you (referring to the interviewer, Janet Sparks)."

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Related news:

• Francorp Opens Office in Dubai
• Boroian Released from Duluth Federal Prison Camp
• Boroian Sent to Solitary Confinement
• Prison Investigating Francorp's CEO Boroian
• Boroian Toys with Government