Francorp Opens Office in Dubai
Chicago-based franchise consulting firm Francorp has established a licensee in the Middle East and established a Francorp Middle East office in Dubai.
Here are excerpts from the company press release dated July 16, 2007:
Francorp establishes its Dubai office
* * * * *
Francorp Inc., the American franchise leader and the world's foremost franchise development and consulting group, headquartered in Chicago - USA - announced the establishment of its services through Francorp Middle East, based in Dubai, to provide services to large, medium and small businesses in the Middle East region.Commenting on this recent and important expansion, Donald Boroian, Founder & Chairman of Francorp, said: "Franchising, as a rapid expansion tactic, is one of most effective options a company should consider for its potential to grow and expand the business quickly; especially in a market like the Middle East where the franchise industry is valued at over $14bn and is growing at an annual rate of 27%.'
* * * * *Najeeb Al-Awadhi, Chief Executive Officer of Francorp Middle East said, 'What makes Francorp so unique, and our clients so successful, is that Francorp provides all the franchise resources they need, through the seamless and coordinated efforts of an in-house team experts. We save them time, money, and the stress of trying to manage everything yourself.'
Francorp is a credible and experienced company that offers unique value to its customers - differences that matter to the success of the franchisor. 'We are confident that Francorp is in the best possible position to help entrepreneurs successfully achieve their expansion and business plans through franchising. Francorp is ready to give the support a company requires in the continuity and development of its business. Francorp is the only firm to offer clients coordinated strategic planning, legal services, operations, marketing, training and support services, all under one roof.', Al-Awadhi added.
You can read the entire press release at Let’s Franchise the Middle East
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OMG He was really busy busy
OMG
He was really busy busy busy in prison.
Francorp Failure and employee responsibility
I don't want to bore you with another franchisor who was severely bitten by Francorp but I'm one of them. We didn't do sufficient homework in 2003 when we contracted with Francorp and if you want to know how the treated us, just ready any other writing in this forum because they are all the same. What bothers me most are those employees who knew how Don operated and yet they stood side by side with him and convinced us this was what our company needed. Shame on me for not investigating further, but shame on them for working for a company that acts and behaves fraudulently. If any of Francorp's employees knew this was going on and some of them did, they should be held just as liable and responsible as Don. Same holds true today if Francorp hasn't changed it tactics.
My warning to any business owner that wants to consider franchising....DO YOUR HOMEWORK and not only investigate the developing company, but investigate is upper management!
Francorp Legal Question
I have consulted with Francorp in the last 2 years. I am very experienced in franchising and I feel like they could help me with the UFOC and some training materials. But I did run a recent credit report on Francorp (I ran it at the end of July) and they do have 1.3 million dollars in Federal Tax liens that were recently filed against them and there payment status is trending downward on how they pay there vendors. My question is as follows: What liability do I face as a client of Francorps when they are in such a pecareous financial position. Can the IRS come after Francorps clients? I have visited Francorp a couple of times and I agree with what has been written here, they have no money. You will never visit a shabbier more cramped and run down office in your life. I am scared that if I sign up with them that they could go out of business at any time and I would be stuck. Can anyone advise me with some guidance. Than You.
IRS Payment
If you know Boroian, you know the answer to your question - of course not, why should he suffer?
Francorp Middle East
Things may be OK in Dubai, but domestically Francorp is reeling with the recent spate of resignations from the Chicago office. In the last 6 months, at least 8 key employees have resigned from Francorp. One was a director of marketing, one was Boroian's personal assistant, Two more were the top performing sales resources at Francorp. Two were their most tenured attorneys and the remaining two were the most experienced franchising person on the staff, and a franchise analyst, respectively. Quite a few more key professionals on staff are actively and aggresively looking for work and from all early indications, shocking as though they may be, Don Boroian appears not to have been rehabilitated whatsoever. He is still offering growth and expansion to all those who believe the hype.
The failure of our nations penal institutions notwithstanding, there can be no irony lost on the spin control delivered sidearm in the above release. In all outward appearances, Francorp finds itself exactly where it was when Boroian left it for a year in federal issue greens. Broke, busted and can't be trusted.
Be sure and tread lightly those who enter into contract with Francorp, be it Dubai or in Olympia Fields, go through this forum with a fine tooth comb, and ask the hard questions of those who consult at Francorp. Run a credit check on them while you are at it, and wonder often and aloud when you meet to consult with them, why the world largest franchise consulting firm is in the worlds smallest, most broken down office.
Why Consider Francorp?
I would not worry about your liability as much as I would worry about whether the IRS decides to padlock the door. The IRS won't be giving any refunds to Francorp clients. And from what one poster said below, it took a year and a half to get them ready.
If your work is not done, you are left holding the bag and will be out any money you paid. And if their employees are leaving as fast as it sounds (6 in the last couple of months, not to mention losing their COO and their Co-President last year), then who is left to do the work?
There are better consultants out there. Google "Franchise Consultants" and then do your homework. Visit their offices. Check their management and the bios of their consultants. Run another D&B. This is a big decision and one you cannot afford to get wrong.
IRS Payment
What?!?!?!?! Do you mean to suggest that Boroian will not be trading in his 500 Series Mercedes Benz anytime soon either? Surely he realizes that he will have to make some sacrifices in order to pay the $1.3M owed. Maybe he misunderstood $1.3M to mean $1.30. He is getting older you know.
FRANCORP DUBAI
Something, based on the other posts about the Francorp/Boroian situation, doesn't seem to sort out properly.
You can't set up a real (as opposed to a pigeon drop) business in Dubai with no money.
The IRS probably has liens filed on everything (company property and his personal property), which would tie up assets and prevent any kind of real "loan" deals, not to mention the impact of his reputation upon his credit worthiness.
If his other offices were all imaginary, isn't this likely to be of the same ilk?
Richard Solomon
www.FranchiseRemedies.com
IRS Payment
I wonder if Boroian will give up membership at the two exclusive country clubs he belongs to so he can start saving his nickels and dimes to pay the Feds the $1.3M owed.
Francorp and The IRS
The IRS liens definitely bring about an interesting scenario. That is quite a crushing weight in which to work under if you are Francorp. Turnover has always been high at Francorp, but the recent rash of evacuees were an especially talented and experienced bunch. One of the things that has always defined Francorp is their inexperience in franchising. With some of the recent revelations on this message board about Boroian's bogus bio, it certainly brings some focus on the age and experience of their key people. Francorp's franchise analysts, whose daily responsibility it is to help clients determine if they have a franchisable business, have a collective franchising experience of less than 10 years, in fact, the analysts average age is probably no more than 25, tops. Francorp's senior consultants, with the exception of Boroian, are all 30 and under, and Francorp is their only real professional experience and certainly their first experience in franchising. As can be witnessed here every day, franchising is an incredibly complex and long term commitment. There are pratfalls everywhere. As some other threads have alluded to, the franchise consulting space is more and more crowded every day. If you look at some other companies out there, run credit reports and do your homework, you can certainly find much more credible, experienced companies than Francorp. Partnering with a consulting firm, regardless of the industry, whose consultants have no experience in the industry in which they consult, is a lot like forgetting to close the screen door on a submarine, it just doesn't add up. I can only imagine that the IRS liens recently filed are going to pose quite a burden to Francorp if they continue to lose experienced people.
Dubai
It is a bit of a red herring, you are correct. Najeeb has been the Middle East franchisee for Francorp for some time now, I believe he does operate out of Dubai as well as other middle eastern cities. He may already have an office in Dubai. It is classic spin control. Certainly Francorp has made no capital investment in a Dubai office, they can barely meet payroll and pay the rent. Francorp consultants did visit Dubai recently to work with a client and there has been so much negative press about the firm recently, that they are using this forum to try and gain some credibility and project stability in the wake of the recent resignations.
They have a history of playing puffer fish with respect to their size and breadth. They have occupied the same Chicagoland office for 30 years, and while they may have had another office in LA at one time, they have never had offices in New York, Miami, Naples etc. as they have advertised over the years. They do have international franchisees, but they almost never visit those offices or take any kind of proactive franchisor relationship with their international charges, the franchisees operate almost completely independent of the home office, and I can only guess that they are happy to do that.
Divorcing yourself from Don Boroian seems to be a prudent business move….at least it seems like that these days.
Francorp International Licensees
Richard:
Francorp basically licenses its name, story and client list to consultants in other countries. The licnsees get to say they're the biggest, have A list clients, etc. for the fee they pay Francorp. Francorp has little involvement with the actual operation abroad.
FRANCORP LICENSEES
It's kinda like having a loathesome disease and sleeping with strangers to spread it around.
Richard Solomon
www.FranchiseRemedies.com
Licensees
This is a perversion of any decent license agreement.
Michael Webster PhD LLB
Misleading Advertising Law
Troubling
I met with Francorp about 3 months ago. i have been thinking about franchising and I thought they did a nice job of presenting...this changes everything. why do companies partner with them?
The Great Wizard of Francorp!
Remember the Wizard of Oz, when Toto pulled back the curtain and the Great Oz commanded her to "PAY NO ATTENTION TO THE MAN BEHIND THE CURTAIN!!!"? That is Francorp.
Up until you read this forum, it sounds like you too were impressed. They know how to sell their services, and unless you dig a little deeper, you may not find out until it is too late.
Anyone looking to hire a franchise consultant should do their homework. Run D&Bs. Call references. Contact their competitors for a quote. And talk to a franchise attorney or two while you are at it.
Answer...
Companies partner with Francorp because, as you describe, they do a great job presenting. Their sales team is smart, genial, and has been trained to answer and overcome just about any objection presented. Unfortunately, too few prospective Francorp clients know the reality of working with such a firm until it is too late (see below).
Francorp
I made a mistake with them. thats for sure. I had an industrial company and met with them in olmpia fields their headquarters. I talked to them for a good six months and they were persistent. looking back all of the signs were there. they dont want to know anything about your company. they dont care who manages your operation, they dont ask who your customer base is or if you are having any financiaL issues at the time they just push and push for you to franchise. they kept telling us how much money we were leaving on the table by not leveraging our experience (i had the busines for 25 yrs when i met them)Finally i pulled the trigger. there were problems right off the bat. You wouldn't hear from them for months and when you did get a hold of them they made it seem like you were bothering them asking about the project. it was always right on track right on schedule as they would tell me. they finally finished it but i had no idea what to do with it, when i tried to get consulting and sales help they wanted me to keep going to this franchise sales class. i had already been to the class but i needed consulting on what was covered in the class, how to put the classroom lessons into action. i asked them to meet with some of my interested franchisee candidates so i could get a feel fro how to go through a sales pitch but they would never return my call. finally i just walked away from it and stopped paying them. i got some letters for awhile a couple of phone calls but i had already paid them 75 grand. by our contract i owed them another 25 grand + i always expected them to come after me for the money but looking back on it now i realize that this is how they operate. no company wirth their salt would sign a big contract with someone and abandon it unless they had already taken that person to the cleaners. i got what they said i would but in the end it was just paper thats it. they never ever taught me how to franchise, not even the first steps. looking back yoiu can see how they have perfected the business to be able to cover themselves legally and still rip people off. i found this webpage by accident and i have been reading it for a few weeks now. i realized how complicated and risky franchising can be and i am shocked that i went into it without doing more homework and Francorp was just waiting for me. they are very very slick but these other people are right do your homework. just the fact that in this whole webpage their is not one positive thing said about this company not one that should tell you something. they ripped me off. dont let it happen to you.
In hindsight I saw where I
In hindsight I saw where I went wrong as well. I signed a contract with Francorp in late 2003. It took over a year and a half to complete everything and I finally had to threaten legal action before they started taking me serious. Once I had the plan, the real work had begun. Francorp never once, in any meetings, conference calls, training, ever really discussed the nuts and bolts of getting a franchise off the ground. Once you are legally able to sell, franchising your business is a whole new ballgame and it is very expensive and very time consuming. Looking back on it, I should have done so many things different. The thing that haunts me the most is that something about Don Boroian always bugged me, I just couldn't put my finger on it, but from the time I met him until the last time we spoke all he ever talked about was what he had accomplished in the Franchising industry. And in business in general. I always wanted to dig a little deeper on who Francorps clients were,and what Don's experiences were, do a refernce check, but I just gave him the benefit of the doubt. It was a mistake. I was sucked in.
He has clearly worked hard to polish that act because that is one of the ways they draw you in. In reading some of these messages Francorp and Boroian especially are just a bunch of scam artists. Boroian hasn't even ever worked for a franchisor in his life, everything when you meet with Francorp is designed to give you the illusion that they are very experienced in franchising, but franchising is so much more than just giving someone franchising binders and materials. Real consultants help people franchise by using their experience in franchising to guide someone along the path. Once Boroian has your money, that's it. They will shove some paper at you and kiss you off. I wish I had run a credit report on them or something like another writer suggested, If I just did a little more homework it might have made a difference.
Behind the Pretty Face ---Hindsight
Don't be too hard on yourself. Bororian has an impressive bio that he either earned or bought ---how can we know?
Evidently, he has always been able to sell himself and appear highly successful and we are all fooled by a pretty face at one time or another in our lives.
I'm sure, in retrospect, that you understand that you should have trusted your instincts and dug more deeply but when we are looking for solutions, we like to believe we have found them. This is human nature.
Bororian is operating in the Global market and his Bio doesn't mention his time in a US Prison for tax fraud, etc.. and I'm sure he still drinks with the IFA powers who support anyone who supports franchising no matter how shady their past.
Not so fast
Au contraire my fellow blogger. The IFA wants nothing to do with Francorp as long as convicted felon Don Boroian is running the company. Francorp is not a member of the orgabization as a result. Because Boroian has an ego the size of mainland China, he will never relinquish the reins. Do not expect to see an "IFA Member" flag in Francorp's IFE trade show booth anytime soon.