Boroian Toys with Government
Boroian Purchases Florida Home After Tax Evasion Conviction
BONITA SPRINGS, Fla. (Blue MauMau) - On May 16, 2006, when Donald Boroian, founder of Francorp, learned of his one year, one day sentence for felony tax fraud at his hearing, he pleaded with the judge to reduce his sentence to community service or a work release program to help pay back money owed the IRS. In his plea, according to one source inside the courtroom, he repeatedly said, “I am disgraced.” But the judge refused saying that in spite of the 26 letters the court had received in his support, he felt the sentence was appropriate and would be a deterrent for others. He gave Boroian until July 28 to get his affairs in order before surrendering to the Duluth Federal Prison Camp.
But now we are learning from documents in the Lee County Recorder of Deeds that Boroian purchased a home in an exclusive area of Bonita Bay, Florida on May 31, just two weeks after his desperate plea for leniency. Not only is his name on the deed and mortgage of condominium, but also that of his director of transportation—better known to Francorp staff as his “driver” or “personal valet”—and his wife. Boroian had sold his previous home in Florida to pay the required $100,000 toward his tax liability at his sentencing, according to one source.
A History of Government Confrontations
Boroian has had a history of confrontations with state and federal governments. In addition to this latest federal legal action to collect $542,000 in taxes due to misstating income for the period of 1997 - 2000, his Francorp office had also been raided in 2002 by IRS agents. According to building tenants and former staff, they confiscated computers and files. The Illinois Cook County Recorder of Deeds has filed a number of state and federal tax liens against Francorp over the past ten years, and the latest was filed for the unpaid balance of assessment, totaling $706,126 for 941 employment taxes during 2003 to 2005.
And now while imprisoned, Boroian has been investigated for conducting business from his cell, a federal policy violation, which resulted in his being placed in solitary confinement days before being released on good behavior—that, according to reliable sources. His projected release date by the prison is now reported to be July 13, 2007, instead of June 6.
But records of the Lee County Florida Recorder of Deeds [see Lee County Deeds - type "Donald Boroian" in name, then scroll down to the bottom of screen to see results; Bonita Springs Mortgage] showing Boroian’s new purchase of the condo in the prestigious Wild Pines Country Club area of Bonita Springs, may raise more questions, not only for Boroian but also for his staff. Reportedly, money is not only being channeled through Francorp for the Florida home, but also for lavish furnishings and other expenses.












Unbelievable behavior Boroian ---ZOR Gore
And, of course, we realize that Florida is not going to sink because it is so low but because all of the crooks are retiring in Florida to protect their homes under Florida's bankruptcy laws.
Boroian's Bung alow down in Kokomo
What's the big deal? It's just a little bung alow. Besides, Roy Snowden gave him a great deal on it.
RQ
ENOUGH ALREADY!!!!!!
Its pretty obvious that this so called "Florida home" was in the works well before his sentencing on May 16th. What is all this going to accomplish? Your beef is with Boroian, leave the "driver" out of it. He probably has enough to worry about, when you are done with Boroian and Francorp, alot of good people are going to be standing in the unemployment line. Is that what you are trying to accomplish here? I undestand that Boroian and Francorp broke the law, Im not going to argue that. Boroian is paying for his mistakes, he is in prison. As far as Francorp goes, I'm sure they will eventually pay for its mistakes also. I think enough is enough, Lets all move on to something more interesting. Cant we all just get along?
Francorp/Boroian Timeline
Let me see if I have this right.
2002 - Raided by the IRS
2003 to 2005 - Does not pay payroll taxes while under investigation by the IRS
May 16 2006 - Pleads guilty to personal tax evasion, sentenced to prison, allowed to get personal affairs in order
May 31 2006 - While he still owes the IRS both personal and corporate taxes, he buys a second home in Florida??? And Francorp is paying for the home and for the "lavish furnishings"???
Is the IRS sleeping, or now that they have their conviction, perhaps they just do not care? Ultimately, this comes out of the taxpayers pocket.
PS - For those of you who pay taxes, tomorrow is April 15th.
A real fact!!!
Those of you who are very quick to judge someone you don't know, and are so easily lead by untrue stories, here is an actual fact. The home in Florida was purchased by Mr. Boroian years before he was even being investigated. That home was then sold shortly after his conviction. Please, if your going to spend time behind your computer screens laughing and mocking someone, at least have your facts strait and don't be sheep lead to follow people who are obviously not only threatened by Mr. Boroian's success but have been delighting in his down fall.
Who was it who wanted us to forgive Boroian?
Who was it on Blue Mau Mau who wanted us to forgive Boroian for all the good he has done for franchising? But, I seem to remember he got out of that corner in a hurry when the evidence became overwhelming that Mr. Roroian was not what he appeared to be in his Biography.
Who knows what evil lurks in the hearts of men? The Shadow knows!
Yes ---Sweep it under the Rug ---UPS and Quiznos
Your concern for the employees of the ZOR who will stand in employment lines is commendable and do you have the same concern for the franchisees who lose everything and will stand in employment lines.
Yes, let's get back to something more interesting where we can perhaps do some good. That is, let's talk about UPS and Quiznos.
Let's try to work toward a definition of churning that FransSynergy can undestand.
Dont believe everyhting you
Dont believe everyhting you read. You can bet the IRS has one eye on Boroian and the other eye on the rest of the country. Trust me as a former employee, the IRS is not asleep, they do not sleep.
Keep the good news comming!!!
Whack a Boroian, Whack a FranCorp
First off APRIL 17TH is the date this year.
Boroian, and FranCorp, have done some very good things for franchising! FACT!
Boroian, and FranCorp have also, on more than one occassion, accepted money for assisting business owners in developing franchise concepts, which I'm going to guess they knew did not have a snowballs chance in Haiti of succeeding!
I'm sure that in building a business the size of FranCorp, Boroian has made some mistakes, and I'm sure that he's done things that others find to be objectionable.
Did Boroian and FranCorp fail to pay payroll taxes, I guess, because he pleaded guilty. So let's assume that he's guilty, but DOES ANYONE KNOW WHAT HE'S GUILTY OF?
Did Boroian fail to pay personal income taxes, I guess, because he pleaded guilty. but DOES ANYONE KNOW WHAT HE ACTUALLY DID NOT PAY. Few people in the income bracket of Boroian could with stand an Audit without being found guilty of something. Apparently if all he got (excluding restitution) was 'A Year and a Day' as a result of a plea bargain, neither the judge nor the prosecutor thought it was a horrendous act!
Should people pay their taxes, absolutely. Should businesses pay their payroll taxes, absolutely. Without knowing the FULL - STORY, this could be nothing more than an error in paperwork, and a decission to accept a year and a day was less than the cost of fighting it and potentially getting a much harsher sentence. It could have been the result of an over-zelous tax deduction. Who knows. But before casting stones, it only makes sense to me that you know the FACTS!
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
Don't Shoot the Messenger
Don't shoot the messenger.
Boroian just needs to stop breaking the law and the rules to make life easier on himself and those who associate with him. News will stop. And the prison system will cease getting tougher on him.
Francorp Facts
The home in Florida was purchased May 31, 2006. That is two weeks after he was sentenced to prison. Follow the links in the article, type in Boroian, and go to the deed recorded June 20, 2006.
It also shows other homes he purchased and sold in Florida before the tax fraud conviction. Apparently, he sold the first home to pay the IRS some money (to show good faith?), then chose to buy another after the sentencing was over -- instead of paying the rest of the money he owed.
I would suggest that if you are going to post an article about getting one's facts straight, that you check your facts first.
Some more Francorp facts
Good point. Let's follow that trail. What are some of the facts surrounding Boroians bio. What were the facts surrounding his indictment for tax evasion and his consequent troubles once inside prison. Was he ever a corporate officer with Chicken Unlimited? Did he ever take companies public, as he so often stated in his seminars? Does Francorp have offices in Los Angeles, New York, and other cities listed on the website and in the brochures? The answer to all of those questions appears to be contrary to what Francorp dismisses as fact.
Let us search for some more facts. What percentage of Francorps clients sell franchises? Who keeps those numbers? Not averages mind you, those are skewed by the clients who do sell franchises, which are few and far between. If Francorp did x number of projects last year, and x number the year prior, it should not be too hard to make a determination which of those clients sold franchises and how many they sold.
Now, Francorp may tell you that they don't keep that kind of data, but why not? who doesn't keep score in business? If you walk into the door at Francorp and you have the money to afford their programs they are going to tell you that you have a fabulous product and that you should franchise it. Why do they tell you that? because growth, they will expound, and additional units, means revenues for your company. How does one achieve growth and revenue for their company in franchising? they sell franchises of course. This is what Francorp is supposedly preparing you to do, sell franchises.
They will offer in the small print that there is no guarantees on the sale of the aforementioned, but they will not mention that in consultation with you. One could reasonably argue that when you enter into negotiations with a consulting firm whose intent is to sell you a franchise development program, that they would be predicating the sale of that program, and your potential in franchising, on past successes. In short, based on the the sale of franchises by prior Francorp clients. But when pressed for these number, numbers that are very, very easy to determine, they will dance and deflect your interest elsewhere.
It should be noted that Francorp does not need to be in constant contact with prior projects in order to glean the information about which of their former clients have sold franchises, that is one of the primary reasons they will tell you they don't keep track. Numerous industry resources exist that provide information of this caliber. One of the components of Francorps franchise development programs is a full time research person who works with those resources all day long. Gleaning the information about which of Francorps clients sold franchises, and how many, would be a snap...unless, those numbers would paint a picture that is very unflattering to Francorp, more specifically, that most of their clients over the years never, ever, sell a franchise.
Why not? Because as another poster in this forum wrote, franchising is a long term commitment, complex, costly, and it takes more than just some boilerplate documents, and a consulting firm telling you that you have a franchisable business, to drive a franchise program. Many of Francorp's clients get involved in the process and realize that when they need real help on franchise sales, real consulting on how to select employees, structure a program, look for a point of sale system, etc. Francorp will respond to you with real world answers like, "It's in the list we provided to you" or, "Have you gone to our franchise sales training yet? "Well, don't worry, everything is covered in that program."
Many of their clients just get to a point where they abandon the entire program and surrender the dollars that they have already paid to Francorp, but the vast majority of their clients never even sell one franchise.
One last interesting aside that speaks volumes about Francorp and their client's success rate in selling franchises. When the chairman and CEO of Francorp, Don Boroian, was imprisoned for Tax evasion, why was the overwhelming response on this forum negative? In Don Boroian's darkest hour, no one, save a satirist named Millionaire Richard Quick, came to his defense. Why is that? 30 years of business, thousands of clients supposedly selling franchises, why is there nobody in franchising who reads and monitors a forum of this ilk stepping up in defense of Don and Francorp?
This is a well read, respected forum in this industry. There are legions of franchising professionals out there who utilize this tool every day to stay abreast of news, provide insight, vent to peers and colleagues, etc. Surely, there must be quite a few former Francorp clients out there who have used Francorp as a springboard to multi unit success in franchising. Yet, nothing. I know that Boroian's reputation preceedes him, but what of the tremendous success their clients have had in franchising? Shouldn't that count for something?
Why the silence from former Francorp clients that have sold so many units?
Could it be that facts have influenced that dynamic?
The Story Is Out
"Without knowing the FULL - STORY, this could be nothing more than an error in paperwork, and a decission to accept a year and a day was less than the cost of fighting it" - FranSynergy
You may want to read all the stories here in which each of these issues are spelled out. Boroian's not in prison for an error in paperwork.
Not A Zor
"Your concern for the employees of the ZOR who will stand in employment lines is commendable..." - Guest
This article is about FranCorp, and FranCorp is not a franchisor. FranCorp largely consults independents on how to become Zors.
And if you talk about UPS, Quiznos or churning, go to the appropriate forum.
In Prison for an Error in Paperwork
"this could be nothing more than an error in paperwork, and a decission to accept a year and a day was less than the cost of fighting it.." - FranSynergy
Interesting theory. I guess that is why you are not reporting the news but are rather here in the comment area speculating about it. The IRS is pretty clear on the reasons - and one of them is not that Boroian forgot to dot the "i" in his tax return signature.
"Facts are stubborn things; and whatever may be our wishes, our inclinations, or the dictates of our passion, they cannot alter the state of facts and evidence." - John Adams
This is a non-story and non-event
No one cares about Borian and Francorp. If he does any harm it will be to fat cat franchisors anyway. Francorp does not provide services to franchisees.
Vis f'zees...
Actually, a few f'zee side people noted that Bororian had long been proponent of f'zees having input, including in franchise trade organizations. Whatever else one may say about him, I don't see evidence that any of his behavior has harmed f'zees.
So while I understand the negative posts, I would tend to agree that from the perspective of franchisees, there is no reason to attack the man. Now, his clients and Uncle Sam might have a different view, and if anyone can show where Bororian's behavior has harmed franchisees, I will reconsider.
Are you now defending franchisors?
I have news for you; franchisors do not need your help! Since you have no interest in helping them anyway. All you want is to give franchising and franchisors a black eye.
Here's Your Pulitzer!
Guest,
I'm not quite as convinced as some are about 'CITIZEN JOURNALIST'. I don't know that the fact I comment/speculate vs 'report news' has much to do with anything. If I have something to report I will. Futhermore there's a difference between 'reporting' the news and wildly, irresponsibly slandering others, and making wild specultative generalized statements based on an emotional, overly sensitized opinion.
JANET SPARKS, reports news. I enjoy sharing my thoughts, opinions, and experiences and learning from the thoughts, opionions and experiences of others. I do not find much benefit in damaging the lives and businesses of others without knowing the FACTS!
TO RETURN TO POINT: I did not say that Boroian forgot to dot an "i". It's not an interesting 'theory' that I have. I just haven't read your EXPERT REPORTING OF THE NEWS, where YOU or ANYONE has explained in DETAIL the circumstances surrounding the conviction of BOROIAN. AND WITHOUT such understanding I think it is IRRESPONSIBLE to continue to bash Boroian and FranCorp! So please, if you are so interested in the FACTS, and REPORTING THE NEWS, get the facts and report them. I look forward to reading your NEWS ARTICLES! Until then....
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
and where are those stories?
I'm sorry, but I've read a lot of accusations. I've read a lot of theory. I've read a lot of personal opinions. I've even read one or two first had accounts, of individuals who had negative experiences. I've read a fact based story or two by Janet Sparks.
But I've read NOTHING THAT SAYS HERE'S WHAT HAPPENED! Perhaps I missed it, could you please point me to the story? Could you provide me with some of the FACTS!
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
A ZOR
Actually, FranCorp is a franchisor. They have franchised Francorp in several different countries, none of which is doing well or paying royalties, according to what I've heard.
I know Don Boroian and I think he is a bad man.
You're kidding, right?
You're kidding, right?
Yes, indeed.
A very, very bad man. Very bad.
No Kidding, here!
NO I'M NOT KIDDING AT ALL!
IF I'm going to particicpate and promote a forum, like this. And other participants in this forum, like yourself, are going to constantly be bashing others. Ruining companies, contributing to their loss of Revenue, Human Capital, clients, etc..... I'd like to hear the facts!
FOR EXAMPLE:
IF, Bob kills Bill and gets life in prision; AND John kills Jack and gets life in prison. Both are guilty of murder. Both are in prison.
However, do we not need to know and consider that:
It's true that both may be guilty of murder in the eyes of the law. Both may spend the rest of their lives in prison. But in my book, I feel very differently about John than I do Bob.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
why u say he be bad
what makes you conclude he be a bad fellow?
what is the criteria used for this conclusion?
g
FranCorp Boroian Facts
Seems like the facts here are pretty clear.
FranCorp and Boroian owe the IRS (e.g., U.S. Citizens)over $1 million.
Instead of paying us back the money he owes us, he bought a second home.
Fact.
he failed to pay money to govt?????
name one business who doesn't play with the books?
The Facts, All the Facts, Nothing but the Facts!
Life is full of FACTS, but one should always look at the underlying facts before passing a judgement, and spreading bad information, which could be harmful to others.
FACT: I was once sued by a client, for failing to fulfill an agreement.
FACT: I did not fulfill the agreement, nor did I return a substantial sum of money which the client had paid to me for the performance of those services.
THEREFORE: I guess you could run around shouting that Dale doesn't fulfill his agreements!
HOWEVER, you might choose to consider some additional facts.
FACT: I did not fulfill the agreement, because the client wanted me to do certain things in the process which a reasonable person would find to be un-ethical and immoral, and that the law might find to be illegal.
FACT: I did not return the money, because I'd invested considerable time in preparing to do the work, and in the process of scheduling available time to perform such services had been forced to turn down other work, for other clients and potential clients.
FACT: The case was decided in my favor, but does that change the FACT that I have failed to perform services which had been paid for?
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FACT: Many years ago, I had bad checks all over town.
FACT: I wrote these checks and they were returned NSF.
THEREFORE, You could say that I have written HOT CHECKS!
HOWEVER, you might want to consider the following facts:
FACT: Prior to writting those checks, I had made a deposit which more than covered those checks.
FACT: At the bank on which the checks were drawn, I had an account, my father had an account and my father and I had a joint account.
FACT: At the time that I made the deposit, I did not have a deposit slip and the teller made a manual entry for me. However, she inadvertently deposited the funds into the joint account, and the bank contacted each payee and cleaned up the mess.
FACT: There was a time when I had bad checks scattered all over town! Does this mean that I was a HOT CHECK WRITTER?
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MY OPINION: If you're going to ATTACK Boroian and FranCorp, you should at least have enough of the facts, to explain the circumstances surrounding the case. It's one thing to say Boroian is in prison for Tax Evasion and that FranCorp has certain Tax Leins for failing to pay certain taxes. It's something entirely different to paint a picture of him and his company as evil villians, without showing more facts.
Believe & Succeed,
Dale
FranSynergy, Inc.
Synergizing Franchising!
Mine.
Mine and many other honest businesses.