As Employees Jump Ship, Francorp Brings Out Big Gun
OLYMPIA FIELD, Ill. – Donald Boroian, owner and principal of Francorp International, has long claimed that his franchise development firm’s credibility and track record are unsurpassed. Its website states, “Our extensive experience with successful big name franchises make us the safest option.” Since 1976 it has helped insure franchise success for over 2000 companies, naming Hershey Foods, Arco, Texaco, John Deere, USA Baby and Ryder Trucks. But recent comments on Blue MauMau and from inside sources tell a different story, one that portrays a company drowning in debt and unable to meet its payroll, causing faithful seasoned employees to jump ship. One source gives a count of 27 people who have left in the past 11 months, which is approximately 52 percent turnover in less than a year.
But this week Francorp gave a good reason why companies should sign up with his firm. Click on the photo above to see the video.
- Franchise topic:


Bing "Francorp" Does your "Related searches" column contain an odd search suggestion?
Someone called "BestFranchise" submitted the video above today, May 24, to Magnify Networks, a video sharing website. The submitter misspells the surname of Donald Boroian, chairman and CEO of Francorp, as Boroion in the title. But mistakes aside, "Best Franchise" seems enthused about Francorp selling services to franchisor wannabees. He prefaces the video:
Francorp is a company that offers services to create budding franchise chains from small businesses.
"Our [Francorp's] job is to create the vehicle for them [small business clients of Francorp] to replicate this [a franchised outlet]," says Francorp's chairman in the video. He continues, "It is sort of like we take the client and stuff them in a Xerox machine and push a hundred, or two hundred or a thousand and that somebody pop out. Now in the process, we consult with them (the beginning franchisor) on how to make it more streamline."
What sort of small businesses seek out franchisor developers such as Francorp? Boroian observes that it is small businesses who want to expand because they see market opportunity but do not have the capital to open more units or hire more people themselves.
But Boroian utters a word of caution. Not everyone is qualified to franchise their business. That's why Francorp is selective in choosing would-be franchisors. "The first thing we do with our clients, when they are franchising is develop a business plan," he states. "Sometimes during that process we find that what the plan shows is that what the client has in mind may not be viable."
Don and the Francorp folks make a mistake in attacking any reporter, especially Janet Sparks.
I disagree with Janet on frequent occasions (most notably on the Sona MedSpa debacle), and I have written that Don's history is more nuanced than may be seen in Janet's reporting of the last few years.
That being said, Janet draws her research from sources including Cook County and federal court records. And she is reporting current news, not a retrospective of Don's advocacy for giving franchisees a fair shake back when few other franchisor consultants would consider such a thing.
You may feel that Janet has overlooked aspects of the Francorp history. But I don't see any objective basis for saying her reporting is a "hatchet job."
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
includes the fact that people will post facts, opinions, agendas. Intelligent readers can sort them out and come to rational conclusions in most instances. The few who are incapable of sorting it out are not material to the purpose of any open forum.
Angry self righteous people always threaten to sue for slander or libel, and those threats have been received here as well. The self righteous have a tendency to resort to empty threats when exposed for what they really are.
One is free, if he can't handle the heat of open conversation with frequent no holds barred situations, to simply go elsewhere and seek only what seems to agree with him.
Francorp's success stories do not change what Francorp really is or what its leader really is. One would suspect that on balance, those success stories may have been largely in spite of having been clients of Francorp.
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Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
My understanding is that Mr. MauMau gets a few threats each month. So if you are going to threaten to sue him, at least make sure that the pleading is entertaining since it will promptly be posted on the Internet.
The last time someone threatened to sue Janet Sparks was when Mr. Caldeira of Dunkin' Donuts did so at the direction of Stephen Horn (Dunkin' Donuts general counsel and head of government relations). And ahhh.... you might want to find out what Ms. Sparks did to Mr. Horn & Mr. Caldeira .
Hell, I got 3 attorneys threatening me with defamation suits just from the stories discussing one particular franchise system. The only attorney that sent a letter was Nixon Peabody, and you can read their letter since it is posted on this very website. My franchising clients were actually impressed that I had Nixon Peabody threatening to sue me, and if I run into Mr. Zappia, I owe him a beer.
Franchisors are not used to obeying the same laws as the unwashed masses, let alone being questioned by the masses. So the ABA Forum on Franchising last year even held a session on how to silence bloggers. Again.... the matter is now detailed here on the internet for all eternity.
As to your specific beef:
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
in their accusations.
Angry people say angry things. People who have been swindled are angry in the extreme, but have been socialized to limit their response to the misfortune. Lacking the financial wherewithall to pursue legal remedies in most instances, and being too overly civilized to resort to self help, they rant and accuse.
Eventually the frustration level will drive people to self help.
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Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
dishonest franchisors, the main reason why accusers are almost never sued to slander or libel is that most such cases end up being a trial of the plaintiff's honesty rather than a trial of the accuser's overstating anything.
If any franchisee gets sued for libel or slander, that case can easily be turned around on the suing franchisor.
Competent franchisor counsel caution their franchisor clients that you almost never can win anything by suing complaining franchisees for slander and libel.
The letter demanding retraction and threatening suit would certainly be posted on BMM. That would probably attract all sorts of volunteered information helpful to the franchisee, even if it were volunteered anonymously. Your disgruntled ex employees become anonynmous sources of very pregnant information. Names, events, dates, where files are located, other disputes relating to the same subject matter all come pouring in to help the defendant franchisee turn the case around to bite the suing franchisor in most tender places.
Suing people for slander and libel is not the threat you think it is. If you had ever done that, you would know what I am talking about, and you would now no longer be threatening people with libel and slander suits.
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Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Solomon is correct, and there is a wealth of credible information available on legal websites discussing how difficult it is to prevail in a suit for defamation. This is particularly true where one is a "public figure" or a "limited purpose" public figure.
To say that you can pursue an individual "if warranted" begs the question of the legal standard of proof, and that is what Solomon is getting to.
Go to a law library in your hometown and see your state's jury instructions given in a defamation case. Then show us how FranCorp has been defamed in any of the BMM discussion.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Les Stewart MBA FranchiseFool :: WikidFranchise
is so important to the future of franchising - in terms of helping people understand its risks and in cleaning it up a bit - that any/all of us will happily tear the heart out of anyone or any group or any company that might think of threatening Sniegowsky (Sp?) or this blog site.
You have a better chance of getting into heaven than you would ever have of harming BlueMauMau - and you know how unlikely that is.
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Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
The reason no one has ever won a lawsuit against Mr MauMau is because no one has ever managed to spell his name properly in the pleadings, so he gets them all dismissed.
Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400
Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
Mr Holman is this really you? - Advanced Maintenance If it is I would suggest you take the free advice you have been offered but I would also take this opportunity to thank you for participating. We need to hear more from franchisors. Whether we agree on some points or not it is always hoped that constructive comment leads to more healthy, honest franchising. That is the goal.
Bad franchising also damages the reputations of those who attempt to produce good franchises - by vague public association - BMM is not responsible for the scams and is not responsible for the your opinion, or mine, or anyone else's. BMM is a public service.
Anyway; how's business? At 53% ROI it should be booming. Love the wheels!
Ya' gotta luv that CDA section 230 - I want one!
Francorp says the right shallow things to those just starting in franchising
It is no accident that the Big 5 consulting firms do not have a franchising arm. The reason they do not is because the market rewards only a nominal level of sophistication in launching franchise chains. If you doubt that then think of when Anderson Consulting (I think it was called Arthur Anderson back then) experimented with a very small franchise arm from someone who dabbled part-time. It eventually pulled out.
Why? Because start-up franchisors are at their heart small businesses with small budgets. Small businesses who want to become franchise chains seem satisfied with those who produce franchisors on an assembly line and that have little capability to understand the deep complexities of industry sectors, retailing, business models and even franchising. Founders of small businesses want to get on the franchise road with minimal expenditures and then trust their entrepreneurial and selling skills to bring them to their destination.
When a franchisor is given the wrong road map to follow, it will eventually lead to franchise failure, no matter how good a salesperson the founder is.That road is extremely difficult to correct. And franchisor consulting firms really aren't equipped to help because a consulting company of young franchisors is rewarded for assisting would-be franchisors to start. It is not incentivized to care about what happens down the road.
Some baby franchisor makers have already taken another well-worn marketing route in writing consulting books. In franchising, the best known books are given such titles as Franchising for Dummies and an Idiot's Guide to Franchising. Rumors are that there is a book in the works that will be titled A Rube's Guide to Franchising Your Company. It has the makings of being the next best seller.
In search of a reputation: Developers of new franchisors feel strongly the need to differentiate themselves against their competitors. They cannot afford to put top-notch MBAs and PhDs on their payrolls that the smallest office of a big business consulting firm would use. The cheapest way to differentiate themselves is by showing credibility on the quality of their final product - franchisees satisfied with a quality system.
Receiving recognition from the American Association of Franchisees and Dealers, Franchise Business Review, American Franchisee Association, Fransurvey or others close to the pulse of franchise owners is one way for a franchisor developer to show that they produce high quality networks that franchise owners are satisfied with. Whether they consciously realize it or not, they are attracted to AAFD and others like fish to water. The blessings of such organizations are a cheap substitute for expensive payrolls, flexibility and profound business thinking. That's why franchisee associations and franchisee satisfaction survey firms need to be extremely selective and methodical in blessing, awarding or partnering with companies like Francorp. Because the very worst of players will particularly need and seek out the blessings of these organizations.
On the other side, franchisor developers should be willing to pay extra money for recognition with franchisor associations. This is a way to show the world that franchisors who have become big adults think the world of a particular baby franchisor maker.
The bad one's are into selling franchises and don't give a hoot if you are successful. There will always be another zee to replace you, even if you fail.
Many cases they lead you to the road of failing. Many of the rogue zors have found a faster way of making money and that is churning and turning. By now most peope I hope know this. Are franchisees chances of success greater? With rogue zors no. With the good zors I would say yes. That is the key to be able to see the red flags before signing on the dotted line.
Good zors know the money will come in slower but steady. Good zors also battle test their systems on their own buck. I read Curves Gary Heiven's book and he started the first Curves with his money and worked it for four years. It proved they were working. Then he sold it as a franchise. That is why I cannot understand why he has allowed encroachment problems. His book revealed his values, ethics and sincere desire to see his zees succeed.
Franchising is a reationship contract. That is the scary part. People do change.
Still, watch in the video how the McDonald's former chief executive does not say that he used Francorp's services when he headed up the burger chain. About the highest compliment he dishes out is that Francorp meets their deadlines and is a one-stop shop in the scope of new franchisor development.
Uh huh. In a testimony, sometimes it is more telling of what is omitted rather than what is said.
See you on the veranda!
Millionaire Richard Quick, Esq.
Website: FranWorst.comMillionaire Richard Quick, Esq.
Website: FranWorst.com--
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
See you on the veranda!
Millionaire Richard Quick, Esq.
Website: FranWorst.com
Millionaire Richard Quick, Esq.
Website: FranWorst.comNick Bibby founded BibbyGroup.com, an organization dedicated to franchise and entrepreneurial excellence.
From Ed's recent bio: 'Today Ed Rensi serves on the boards of directors for Snap On Tools, Ronald McDonald House Charities, The National Italian American Foundation and the International Speedway Corporation."
Interesting.
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
Michael Webster, a franchisee attorney in Toronto, Ontario, publishes a website on business opportunities and franchises called "The BizOp News"
I'm new to the MauMau having been sent here by a fellow FCI refugee, so please forgive me for responding to a dated, yet not-so-dated topic -- the ongoing payroll and financial woes of Don Boroian.
Having the dubious distinction of being laid off from Francorp not just once, but twice, I can personally attest to the fact that creative payroll measures have been going on at Fracorp since as far back as the early '90s if not prior to then. Time off without pay, missed paychecks......and yes, continuous multiple layoffs were the norm. I always found it puzzling why some of my colleagues stayed. But what really made all of this hard to swallow was Don's level or arrogance flaunting limos, and jewels and his wife's furs in the staff's faces at a time when the rest of us weren't getting paid.
What goes around comes around.......sometimes it just takes a little longer than you would like.
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