Home | MyMauMau: Log In / Register | Ask Franny
Log In / Register | Mar 20, 2010

Aussie Zor Takes American Award

Brad Sugars, who founded ActionCOACH in Brisbane Australia before expanding to the United States, is to receive a “Stevie” award as “Chairman of the Year.”  Sugars is proud of being in some controversial company.

Sugars himself has been criticized by his franchisees, and Sugars issued a press release touting the “Stevie” awards by taunting critics: “I feel very proud considering I am up against the likes of the leaders of organizations such as AMERIGROUP and Nu Skin Enterprises.”

Amerigroup recently settled a $334 Million suit by paying the Federal  government and the State of Illinois the amount of $225 Million plus legal fees. The suit had resulted in a jury verdict of fraud and additional penalties imposed by the judge as a result of fraud.

NuSkin is a high profile multi-level marketing (MLM) company based in Utah. The politically well-connected company has managed to stay in business despite a  lengthy history of controversy including FTC investigations and former MLM participants posting details on internet sites.

Formerly known as Action International, the franchisor’s ex-franchisees  have charged that the company changed its name following bad publicity and litigation.  Franchisees charged that even after going out of business, the franchisor pursued them for monthly royalty payments that the franchisor “lost” when the franchisees were no longer in business. Others have alleged that Sugars pursues those who criticize him on internet sites.

The “Stevie” awards are funded by fees charged to entrants and to “sponsors” of the awards, plus tickets to the awards dinner. Ironically, 2 of the sponsors are John Hancock Mutual Funds and LifeLock, an identity theft company.

Some of Brad Sugars’ franchisees would suggest that those concerned with providing for retirement might do well to avoid buying a Sugars franchise. As for identity theft, following the model of Action International, victims could always just change their name and stay one step ahead of the bad reputation.

4
Your rating: None Average: 4 (1 vote)

29 Comments

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Marinos by Guest

Alot of people are still waiting for monies owing. Marinos left Australia recently and I have heard he will not be returning any time soon. Time to turn up the blow torch on the rest of his family!!

close to home? by bj
Is this one close to home guys? Simons comments show a underlying agressive response. The type of vermin we have to deal with are in every district!! Cheesecake Shop AUS have just terminated the master franchisee of SA/NT. Michael Marinos AKA rip off/thief/liar/bully. Alot of happy past and current franchisees in court, MM did not turn up both days. Gutless prick.
Peter Foster ... Brad Sugars by Ray Borradale

Terminating Marinos is a good thing isn't it?  But what is the exchange? 

Brad Sugars is a piece of dirt and the Peter Foster of Australian franchising ... some things are better dealt with at home ..

Australian Franchise Opportunities, a common sense approach to franchising
Brad Sugars - you are joking! by simon young
simon young's picture
This guy is exactly the sort of scumbag that needs to be out of franchising. And his ego is big enough without needing any awards to prop it up - although i suppose it is possible he can only get one by paying for it.
Sugars as Scum Bag by michael webster
michael webster's picture

Simon writes: "This guy is exactly the sort of scumbag that needs to be out of franchising."

Simon, we need to see some references here, some court cases, and some commentary.

For example, when we discuss Jim Amos, there are number of references to his litigation battles, statements from failed franchisees, etc.  People can use this information as they wish.

But just calling someone a scumbag, especially when true, is not helpful. 

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"


My opinion of Brad is from personal experience by simon young
simon young's picture
But if you want to take a closer look at the 'satisfaction' in the system, compare the names of active franchisees over a 12 month period. When I went through the process (and it was a little while ago when it was still Action International) although the franchisee turnover in terms of bare numbers was arguably not too bad, in fact the majority of the individual franchisees that started the year were not there 12 months later. Hence being an 'Action' coach may not be 'for everyone'. (But I wonder how many prospects who have money are declined a franchise). I have no time for the exploits of Mr Sugars having seen how he operates at close range; he is one of the few people for whom I have an active disregard. Sorry I can't help you with more direct links or information Michael, I am just one of the people who has had dealings with the man.
Brad and Satisfaction by michael webster
michael webster's picture

Thanks Simon.

I will look at the Caleasi filings and see if the US experience demonstrates the average length of a franchisee. 

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"


Re: Sugars as Scum Bag by Ray Borradale

Michael, you will find that the commentary and references are within the links and the thread of links in Lionel's blog.

It is my understanding that this scumbag managed to keep himself out of Court records.  They don't record unless there is a finding and Sugars managed to drag out attempts at litigation against Action until franchisees either ran out of money or there were out of court settlements [take-it-or-leave-it pennies] with confidentiality under threat of the treament and final outcome of those who didn't concede and then ran out of money.

It is a scumbag art form and one we are all aware of.

Australian Franchise Opportunities, a common sense approach to franchising
His agreements all call for mediation and arbitration, so there by RichardSolomon
RichardSolomon's picture

is no public record of the particulars of disputes. I share Michael's hunger for specifics before rushing to any judgments.

--

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
Not Good Enough by michael webster
michael webster's picture

Ray, I looked at these links and again these stories have no hard evidence.  If you want to state a fact, with reference to a court action, do so.

But, just calling someone a "scumbag" with a set of misleading links doesn't make your point.

Simon, of all people, should know this. 

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 appreciate your position by Ray Borradale

I appreciate your position on this Michael and substantiating links are preferred.

However I have a problem with simply walking away from a scumbag because he plays the scam franchising game too well and avoids public scrutiny of litigation. One call yesterday led to enough direct anecdotal evidence to suggest that Action had one successful Australian franchisee.  One!

When I asked a lawyer about Brad Sugars he advised that professional standards and ethics did not allow him to go into specifics and preferred to respond generally about scam franchising industry practices.   In not mentioning him do we not offer him a free pass to scam people into believing that One success represents a majority.  ONE success in Australia - how many failures in the US?!!

Australian Franchise Opportunities, a common sense approach to franchising
Re: Brad Sugars - you are joking! by Guest
Well said Simon...as ever - very insightful!!!
Brad Sugars .. bottom feeder by Ray Borradale

Conman of the Year [or at least a bronze]
Brad Sugars, Chairman, ActionCOACH, Las Vegas, NV

Thank you Lionel; people just need to follow your various links and they get enough information to ABSOLUTLEY KNOW to steer clear of this bottom-feeder.

‘Ask yourself why the turnover in franchises, why all the lawsuits and why all the negative posts on the internet as far away as Australia. I think it is more than just jealousy. I have seen Brad Sugars ads in Entrepreneur Magazine which surely cost a small fortune to run. This tells you nothing about what his franchise's are based on.

I looked at their UFOC which states they were previously shut down in California for awhile and have had problems in other states. We all know money talks and a team of good lawyers can put a spin on anything and tie it up in court for years. I've made up my mind and all I suggest is before being taken under Brad Sugar's ether do your homework.'

Being from Brisbane, Queensland, Australia I would like to apologize to the US and anywhere else this piece of poo turns up.  Inferior genes happen ... he might be the product of a damaging religious experience or he may simply have been accidentally dropped at birth.

What I would really like to understand is how we view the rest of those that were nominated and won awards.  The American Business Awards?  From an Australian perspective it does sound quite prestigious but it really doesn't say much for anyone on the list when BRAD SUGARS is a winner does it?

Australian Franchise Opportunities, a common sense approach to franchising
Raymundo the Dark by Les Stewart
Les Stewart's picture
...product of a damaging religious experience...
Priceless. Les Stewart MBA FranchiseFool :: WikidFranchise.org

Les Stewart MBA FranchiseFool :: WikidFranchise

Beware of people by Ray Borradale
in white bathrobes with free biscuits ..
Australian Franchise Opportunities, a common sense approach to franchising
Mr Sugars cannot be all that bad, or he would have received by RichardSolomon
RichardSolomon's picture

an AAFD award.

--

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
Re: Mr Sugars cannot be all that bad, or he would have received by Alicia
Ummmm, Cuppy's Coffee received this award and look at that situation....need I say more. Can't go by the AAFD awards, in my opinion they are not worth a grain of salt. Cuppy's was a Ponzi Scheme from day one....
Solomon sarcasm by Paul Steinberg
Paul Steinberg's picture

Alicia, that was Richard being sarcastic and off topic.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
On the List by michael webster
michael webster's picture

I am told that he is on the short list.

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"


ActionCoach ranked 17 among most satisfied franchise owners by Bogusius
According to Franchise Business Review, ActionCOACH's franchise owners are some of the most satisfied in the franchise world. FBR ranks ActionCoach #17 in 2009 by Franchise Business Review’s Top 50 systems with the most satisfied franchisees. Still not sold on what a great system ActionCOACH is? There's more.
Out of over 2,500 active franchise systems in the U.S. and Canada, just 115 companies received this award in 2009 (this represents the top 5% of all franchise companies). While other companies saw overall franchisee satisfaction suffer due to the economy, ActionCOACH was one of the few companies that saw its average satisfaction increase. “While we do well when the economy is robust, we do even better in a downturn,” Shaw said. “Our franchisees don’t have to suffer during tough times – a fact that has been validated by this survey.” ... This award has much value attached to it for the prospective franchisee.
Now if that hasn't convinced the franchise buyer yet, consider this -- ActionCoach is a member of the prestigious International Franchise Association, right along with current member Cuppy's Coffee.
ActionCoach's many awards by Guest
Action has been so ranked for the past three years as "the #1 Business Consulting Franchise in the World," by Entrepreneur Magazine. In 2006 Entrepreneur Magazine also ranked Action International #80 in the Franchise 500, #55 Fastest Growing Franchise, #15 Top 101 Homebased Franchise, #49 America’s Top Global Franchise. It's not just the American establishment that likes ActionCoach. Ireland is in love with the franchise too. "Action was the winner of the prestigious 2005 Franchise of the Year Award in Ireland. The award is presented to the company that has demonstrated outstanding growth and development in the service sector of the franchise industry. Winning the Franchise of the Year Award is a major achievement for a company that was introduced to Ireland just three years prior. Action triumphed over well established brands like McDonalds and Subway. Not bad for an Aussie company which began franchising just 9 years ago." And how about those Brits? "Action was awarded UK Franchise Provider of the Year by Business Britain magazine. The award, which is the first ever to be made by Business Britain, was presented to Action after a panel of journalists and managers from the magazine judged it to have excelled across a wide range of criteria including reputation, franchise return on investment, profit growth potential, and quality of franchisee support. Other companies nominated for the award include McDonalds, Chips Away Papa John and Pitman Training." WOW! Fellow Brisbanites can be proud.
Re: ActionCoach's many awards by Guest
Looks like some things Brad might say?
That would be Bradley by Ray Borradale

Peter Foster managed to scam people everywhere for a time.  I do believe he is in goal.

Bradley; I've been informed you were chased out of Aus when too many made it clear they wanted you mounted.  So where to next?

Australian Franchise Opportunities, a common sense approach to franchising
Entrepreneur Magazine by Paul Steinberg
Paul Steinberg's picture

Can't speak to the other nations mentioned.

But the Entrepreneur rankings (which are not "awards") are not exactly predictors of success. Most famously, the example of Quizno's should be a cautionary tale to anyone relying on Entrepreneur rankings.  While the magazine may have some worthwhile advice on occasion, the rankings are best ignored in making a purchase decision.

About the only "ranking" that I would put any stock in is a franchisee satisfaction survey. And where the franchisor has a reputation (accurate or not) for taking action against critics, any survey would be suspect.

Paul Steinberg
Franchisee Attorney, New York City, Ph: 212-529-5400


Paul Steinberg, Franchisee Attorney, New York City, Ph: 212-529-5400
FocalPoint by Guest
Whatever happened to the company that broke away from ActionCoach -- FocalPoint? There was some sort of big disagreement.
I'll tell you what; by Ray Borradale
If he comes out from under his rock I will offer to personally give him an "IFA" award.
Australian Franchise Opportunities, a common sense approach to franchising
Boradale bored and bitter by Guest
Check out http://www.news.com.au/heraldsun/story/0,21985,21907858-661,00.html The person at the centre of the campaign was allegedly Ray Borradale, UltraTune's Queensland franchise support manager, who is a former Midas franchisee. Mr Borradale is under a Federal Court order preventing him from publicly attacking Mr Bonney. Looking at the rest of the posts from you Ray - I doubt whether you would ever have anything positive to say about any franchise system in this solar system. Build a bridge mate and get over it.
Re: Boradale bored and bitter by Guest
Smells like Brad again.... "I doubt whether you would ever have anything positive to say about any franchise system in this solar system." After my experience, I wouldn't either
Don't believe by Ray Borradale
everything you read wally - the defamation action in process won't be lost.   And if you had read my posts you would have read some 'balanced' opinion according to one leading international zor that I don't work for but I am assisting.  I wouldn't necessarily agree with him on every other day but who am I to doubt his opinion.
Australian Franchise Opportunities, a common sense approach to franchising