Letter Indicates iSold It's in Big Trouble

The iSold It franchise opportunity has been named “Hotter than Hot” and the “Best New Franchise for 2007″ by a leading national magazine.  However, a letter currently circulating the Internet indicates this American Dream may have become an entrepreneurial nightmare.

A  letter entitled “An Open Letter to our Franchisees,”, allegedly written by iSold It CEO Ken Sully and distributed April 5, 2007, first appeared in the comments section of a post on Franchise Pick   (Is iSold It a Great Franchise Opportunity?).   If genuine, the letter indicates that the highly touted chain is in serious trouble.

According to the letter, iSold It has grown to 170 units and become eBay’s top seller in just over three years.  However, the letter states that the iSold It franchise chain is in a dire situation, that over 60 franchise stores have closed and many more are struggling for their survival.  The company has suspended franchise sales, “reduced headcount,” eliminated its franchise development group, sold its company store and is moving to a smaller office.  Though the chain claims systemwide sales of $4 Million per month, stores vary widely in sales and profitability and many are operating below break-even.  According to the letter, some stores are doing over $80K per month while others are struggling to reach $10K per month.  The letter states that the greatest threat facing the iSold It franchise system is that of potential “action” looming from a group of franchisees who have suffered significant financial losses.  The letter states that “it is unclear if [iSold It] will be able reach a conclusion without litigation, reorganization or insolvency.”

Related Posts: 

iSold It: American Dream or Franchise Nightmare? (4/9/07)

iSold It Suspends Franchise Sales (4/8/07)

Franchise Rumor: iSold It UK in Receivership (4/7/07)

Has iSold It Halted Franchise Sales? (4/3/07)

Is iSoldit a Great Franchise Opportunity? (4/3/07)

Related Links:  iSold It website, AmITheOnlyOne.org website