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I am looking for information on KLA preschools/childcare franchise. They are a fairly new company, started in Miami, FL.
I feel confused about the advertisement fees required in FDD. Will we know how the contribution is used? And is it true our contribution will only be used for promotion in local markets? Does every franchisee contributes the same rate?
Thank you for answering the question!
We are a group of volunteers and starting a new initiative in a community. Your blog provided us valuable information to work on. You have done a marvellous job!
Look up "The Local Door Coupons" , doorcoupons.net its a similar concept without having to do come up with all the content for a newspaper. impressive profit margins.
filta allows more than one van in the territories you couldnt grow your business if you could only use 1 vehicle in a territory that has 100's if not thousands of potential customers.
plus 7/11 operates the same they lease you the use of everything in the store, the only equipment owned by a 7/11 franchisee is the byuilding and the built in cooler. ever notice everything in the store is on wheels, well the shelves arent... kfc the colonel used to take his pots away from franchisees that werent adhering to his standards. filta does seem to be a bit expensive but with hard work and good people skills you should do good with it. also they discourage people from being 1 truck territory as they dont make as much money when you have a truck that can only handle 6-8 accounts a day 5-6 days a week and most of those are twice weekly visits.
unfortunately the filta shuttles do not include a locking lid...
I too am wondering if others have anything better to say now that it is 2016. Or if you bought the franchise and have any opinions now.
Our franchise is over 10 years old. We have under 100 franchisees in the system, however just a few years ago, we had over 200. The founder blames the lack of growth on some franchisees who, historically, badmouth the franchise for lack of execution, common system/products, marketing and growth.
I'm specifically, I'm concerned about growth. The founder is in his 70's and at the tail end of his business career and enjoys exploring other ventures. Since 2010, the franchise has closed more stores than opened and we continue to lose more stores every year. Other than "throwing our name in the hat" with business brokers, there is no plan for growth or resources committed to growing the brand. Our investment as franchisees depreciates every year with each store closing.
Many franchisees left the system and have gone off on their own as there is nothing proprietary or unique about this business.
There's an old saying in business, "once you stop growing, you're dead". Any recommendations for us or other franchises in similar situations?
No Growth, No Glory
In response to your post: Just curious, are you still in business?
I respectfully tell you that even though you are a customer who spent $400, you have no clue what it is like to be an owner of this franchise. When we bought our FS franchise there were over 250 stores worldwide. We were sucked in by promises of a "system", advertising, research numbers, etc. You have to pay for all of your own advertising and corporate provides none - at least not in ways that the average Joe would see. One bright idea was to market to "little people". We were on the TV show "Little People, Big World" and corporate made them orthotics and shoes. They spent lots of money on that, I can tell you. We were advised to make appointments in the evening after closing for the "little people" because they don't like to be stared at, and various other advice. Do you think that that was our true target market? Not deriding "little people" but I have not actually seen such a person where I live. Our market is diabetics and arthritics. You can work until you are numb and if people don't know who you are, it doesn't matter. I did diabetic talks at the local hospital every month, all of the health fairs, advertised in all the newspapers, advertised at the local movie theater, had a 30 minute infomercial, was accredited for medicare diabetic shoes/orthotics, etc. I loved my store and my customers. We got awesome reviews. It wasn't enough. You have to also have a national presence from your corporate office like a commercial that catches attention during TV viewing. Local advertising wasn't enough. We did the business the way the franchisor told us to. In fact, our Field Op told us we were doing everything right, but that Ray had a specific mindset on how to promote the business and it wasn't going to change. After 5 years of not taking a salary and putting money in every month from our line of credit, I had had ENOUGH. How dare you accuse people of not doing their research, due diligence and prepare to work hard! I did all of that. You got all of your "knowledge" of the franchise by being a customer. We all gave our customers that glowing experience because that's what kept us alive, and also made us get into the business to begin with. I'll tell you what. Why don't you buy a franchise in your local area and give it a whirl and post your success story here. Oh, and get Ray to discuss why working in corporate is like being in a revolving door. Every person that has been hired and told to the franchisees to be "the person who is going to bring us to the forefront" lasts no more than a year, and then another person comes in with their way to save the company. They are down to a handful of people compared to what were there when we had our store.
Do not sign a temporary shut down agreement. They'll try to get you to sign a contract that is a temp shut down so you need not pay fees but said contract prevents you from any recourse. Since they force you, illegally, to use their suppliers, which are sub-par at best, the quality of the work destroyed my reputation in my whole region and I had a decent pipeline of clients. I mean, look at their own site. The case studies and testimonials are outdated, broken links, or companies who no longer use WSI. A marketing company that cannot even market themselves.
When I was struggling with minimum sales to pay minimum royalties, WSI paid me in "IC Mikes" basically points to pay off my feed to talk to prospective investors and tell them how wonderful it was. I feel horrible I even did so but I had no choice as I needed to pay my monthly $625 ($300 royalty and $325 access to "marketing" and software (which their CRM I can get on my own for $30/month and their WebScan is nor proprietary as they tout and there are free apps to do the same stuff)). It's all a scam. I got a list of franchisees to call prior to investing and I realized it was their five success stories. I demanded a more thorough list from the FranNet consultant I used to look into businesses and now realize even if they were failing, they were likely paid to paint a rosy picture.
That's better odds than it really is
The costs put you out of the market. The restrictions of trying to separate yourself from other franchisees are like a noose. Look at their own site and case studies. Those companies they use as case studies don't even use WSI anymore or links are broken. They can't even maintain their own site!!!
All they're revenue is from selling franchises and there is no support or development of existing.
I think it all depends on what you signed in your contract. In own contract that I saw it stated this:
“This Agreement and Exhibits hereto contain the entire understanding of the Parties and incorporates and merges herein all prior oral or written, expressed or implied conditions, agreements, contracts or understanding of parties”.
So want every was said before the signing of this contract doesn’t mean anything. You go back and read threw the agreement.
Should I be concerned? The ownership of a franchise I am looking at was sanctioned bt SEC?
Don't know if it impacts franchisee support or relations?
I am a newbie wanting to get in the business and wondering if a franchise is a good idea ?
Or what is a better option?
970 319 0171 talk and text
It is going to touch the franchise market. If I buy a box on 12 DK k-cup that mean I will go at least 12 times less to DK to get coffee I can get it at home. It has hurt the franchise.
Does it hurt the franchise when the franchisor deices to sell products at retail outlets other then inside the franchisees shop, example Dunkin Donut selling their coffee, Panera Bread, selling loafs of bread at grocery store. And I just heard the star buck is going to start sell the tea in already made.
There are now only 25 US franchises listed on the franchise website.
It's now 2016 and EWS has still not paid commissions they owe to affiliates. I worked on a Joint Venture with them for over a year before I saw any compensation. Things went smoothly for a while and then all of a sudden the payments stopped. Just like Brandon, they owe me thousands of dollars. They have stopped responding to emails and failed to acknowledge a letter from my attorney. If there is a way for affiliates to coordinate legal action against them I feel it should be pursued. EWS should not be allowed to scam people.
I never read any bad press and most do not make money with them, A MLM these days
On November 23, 2015 I bought three things at your store in Orland Park, IL. 2 pair of boots and a pair of Rachel black shoes. These shoes I paid $125.96. I never thought to check the size. I did question why she was selling me a wide width. She said that's what I needed. Well, I never had an occasion to wear them until a few weeks ago. I will never wear them again. They killed my feet. Way to wide and not enough room in the toe part. So I checked the size. I wear 8 1/2. She sold me an 8. Now I know why she put me in a wide shoe. Old trick when you don't have someones size. Put them in a wider shoe. I know because my mom sold shoes for 30 years - rest her sole. She (Debra Fornof) wants me to bring the shoes back so she can fit them better. There is no fitting when they are the wrong size. Now the store is closing! I want a complete refund. I was a good customer. I spent $988.71 that day. If you cannot do anything for me, I will contact the better business bureau.
Thank you, Barb Zaino
I had my house paid off after many years of hard work. I was looking for some financial stabilitity a new challenge and this was a so called cash cow . The plan buy set up the store , live off the minimum put all money back into the store to build the business and pay it off and then put a manager in and live off the profits partial retirement.
No No No, buy franchise set up shop with some problems but that was the easy part. Grand opening with just one trainer and 1 week to train new staff. Thousands of dollars of food waisted due to oven temperature problems and in experienced staff. Internet problems , Got smashed as everyone in town wanted pizza which was great but the staff and store could not cope. One trainer. First month , struggle to pay food bills and then first 3 months could not pay bank money back , then the GST bill and for the next 3 years of not building a future but trying to save my house working 90 hours. Week to get the cogs under control. What a nightmare and the franchise wanted their commission the bank want their money the rent the wages the food costs then the floods hit , everyone wanted a slice of the pizza and their was none left for me and I was doing all the work. I could earn more money sitting on the beach all day than opening the store. Could not sell no escape, mentally strained, financially screwed and body buggered with no more to give. Lossing my house and family brake up was my reward . No one to help me living in a caravan park with no money depressed and no one to fight for me. I see stories of people loosing their home to fire and how tramatiic it was well what about people that work hard and loose their home, we can't put an insurance claim in and get money to rebuild. We don't get warning the fire is coming. We don't get community support or councilling . We don't get hand outs we are not thought of in yet the community was always getting our support when we were in business with discount pizza and free pizza to fund raisers. I think there is a gap and no offence I am not saying that people who loose their house to fire is not as traumatic it is but who is there to help the people who loose their homes to these franchises while they continue to operate. There should be support from the franchises, more ownership of the distress they caused.