Despite Failures, iSold It Continues to Promote eBay Drop-off Franchises Elsewhere

If the leading eBay drop-off franchise chain iSold It is closing stores and fighting off bankruptcy due to problems with its business model, why are they still selling franchises in Canada, Australia and the UK?  Does the concept work better outside the U.S.... or have the unsuspecting citizens abroad just not gotten the word?

Ken Sully, CEO of troubled eBay drop-off store franchise chain iSold It, has acknowledged publicly that there are serious flaws with the iSold It franchise concept.  In an open letter published on Franchise Pick ( An Open Letter to iSold It Franchisees from CEO Ken Sully), Sully admits that 60 stores have closed and many more are struggling to survive. 

While he feels very badly for anyone who lost money, he contends that iSold It "presented this concept fairly from the beginning."

In fairness, Ken Sully deserves credit for openly acknowledging the problems facing iSold It and the struggling iSold It franchisees.  It was the right move to suspend U.S. franchise sales, and to focus all efforts and resources on assisting current iSold franchisees. 

However, even if iSold It had, as Sully stated, "presented this concept fairly" when selling franchises in the past, are they doing so now in Canada, Australia and the U.K. where they continue to offer franchises? 

Are prospective franchisees in those countries being told the truth about the performance of the iSold It franchises in the U.S. that, we assume, use the same business model?  I took a look at some of the claims that appear, as of 4/14/07, on those sites.  Here's my take:

iSold It Canada: A Franchise Too Good To Be True?