Log In / Register | Feb 8, 2012

Pirtek USA

Hydraulic replacement hoses & assemblies

18 Comments

Pirtek

Really watch out for this franchise. In the past six months more than 15% of non-company owned stores have closed down. In recent years as many as twelve locations have closed down or been transfered or filed for bankruptcy. All this unsavory activity from a franchisor that only has around 35 franchisees. Please see the other posts concerning Pirtek on this site as well as franchise perfection. Make sure no matter what franchise you are looking at that you contact all past and present franchisees. Make sure you know the real history of the company AND the franchise location before you invest. Recently one Pirtek franchisee told me he has not made a dime in ten years. He is for sale but admits its hard to sell unless you cook the books a little. Pirtek Hoses and Assemblies is a bad business. Please do your research carefully concerning this company. Thanks

Pirtek USA

This firm is so unethical, so poorly run, its is hard to understand why or how they sell any new sites...they have closed more then they have opened, had employees hurt on the job, have no insurance coverage, and poor over priced product...why would any one engage this non USA company for any reason??

The original morons

The original Australian morons might have been part of the problem. They never complain but they never make enough to not be doing it for themselves with a lot less overheads and then they just get replaced.

So many Morons..so many!

There are numerous "warnings" concering Pirtek on the web. It is hard to understand how anyone would buy this franchise. I guess there are enough fools out there thinking they can do it better than the last failed franchisee. I guess an 80% failure rate does not compute. I guess wasting $500,000 80% of the time seems like a good investment. Maybe would-be Pirtek franchisees don't know how to read? Oh!....Morons!..Now I get it.

Such an awful company

Our firm recently used the services of Pirket in Plano Texas...not only was the service tech horrible, he was untrained, did not speak english and could not fix a hose if his life depended on it.

On top of all of the above this company had the gall to try and charge us over $500.00 for a hose that we replaced the following day at a local provider for only $59.00.

When the franchise was contacted to resolve this matter, we were told the store was owned and operated by the corporate office, and that they could care less about our concerns. The manager was rude, and threating on the phone to our poor admin. Pirtek is nothing but a den of thieves...!!!!

It is an awful company, and as you said a den of thieves.

Pirtek charges as much as six times competitive prices for identical products. In your case almost ten times. The customer gets ripped off and the Franchisee gets ripped off. Its like the trickle down theory in reverse, except everyone gets screwed except the Fat Man on the top of the food chain. One employee committed suicide after being bullied by the operations manger/GM. Many franchisees complain about crazy workers comp claims because the training is so poor and basically exposes the Pirtek Technician to injury.
Every business has warts, especially Pirtek and PIrtekUSA. They have no motivation to change. Why would they? They have only managed to franchise about 30 locations in the largest industrial market in the world (unless China has passed us) in about 15 years of franchising. That is only TWO franchises a year. Of course what we do not know is that they may have sold and refranchised 70 or 80 or maybe 90 locations here in the USA. Sadly most Pirteks' fail. Of the 30 or so that remain most are broke.
At Pirtek the failure of the Franchisee does not matter, the big fat franchise fees and stocking orders is what matters. Lest you think Pirtek is the only franchise that does this, think again. Pirteks' master franchise agreement runs out in 8 years, but the franchse agreement is 10 years. Would you go into business with a short term player?
The 65 year old owner of PirtekUSA is relaxing with his new 26 year old bride fresh from Morocco at the pool.
The poor franchisees are powerless, they over paid, continue to over pay and will have to continue to over charge customers and all they get is a risky low paying job.

Watchdog

Thanks for looking beyond the veil of Pirtek USA! If the Pirtek franchise system stays in their own world, then the countless number of customers who continuously get the defective hoses will be a revolving issue. They will continue to schmooze their way through the system as though they have created some sort of franchise perfection. You have no idea how many sleepless nights I’ve had due to nightmares of a fleeced assembly. I understand our Aussie friend by suggesting the assembly imperfection stretches the globe from his home to ours. He’s one of the good guys that sees through the “crap”.

They have international partners (bottom line feeders) and domestic operators (top line feeders). It’s the international side that embezzles the fruition of real equity. It is as though there are no regulators scrubbing through the annually defective hose registrations. So much sleuth has been gathered, in only 3-4 years of setbacks. However, today it’s only costing 10x what the rate of initial investment should have been. More fat for the fat promoters! I appreciate you seeing the incredible Moroccan connection. He's still there on R oyalty R oad. Did you know the 1st generation leader had personal marital issues way back in ‘78? Wait until you hear how they built the multinational alliance overseas. Most people only heard about the 1985 family disruption that led to the 1989 international transfer. It’s a blinding story to America. We still need help to get on top of the hill. Pirtek USA because it’s Americana….

Ray Borradale's picture

Classic repercussion

When a franchise model doesn't work then franchisees get desperate and performance is based in survival. Then it spirals into a big splatt.

Mam; you should slip over to RipOff. I'm not defending the franchisee performance but what clients see never truly reflects the reality behind the franchise model.

This system began in Australia. Don't thank us. We also gave you ActionCoach and now David Reid Homes to show you we can glitz and glam with the best of them. Payback is petty isn't it?!

Pirtek and the "Splatt"

It really is more of a classic repercussion than we really think at Pirtek. I heard that the Master Franchise agreement is in doubt. I recently found the 2007 through 2009 Consolidated Financial Statements for PirtekUSA and guess what?..They lost money..not only that but every Pirtek Company owned store lost money. That's right. Even after cherry picking the 8 closed locations, the three stores they took over caused big losses. Word on the street is PirtekUSA might be on the way out. It finally became clear that all the bankrupt and closed, abandoned and terminated Pirtek locations happened because there is just no profit margin. Sales are down by 33%...Closed Locations this past year up to 9..fully 1/3 of all franchise locations. More franchisees in litigation right now..after more than 50% of all franchisees went to arbitration in 2005-2006. It is just not going well for our friends at PirtekUSA. It looks like the model does not work, they are spiraling into a big splatt alright. Payback is pretty isn't it?!

PIRTEK USA Doing Well

It is funny how fast rumors spread! Yes it is true that some locations have closed but this is not because there are low margins to be made. All of the centers that have failed are due to Franchise owners not following a proven system that has been in place for over 30 years. This is not McDonalds you can't just buy this biz and sit behind a desk and expect it to run it self. If the franchise owner is not motivated to promote his biz and train his employees then yes he is Destin to fail. This is a hands on biz and if you want to know the real story call Pirtek USA headquarters and speak to the franchise development department. If your buddy drinks poision will you with out the research. Just Saying!!!!!

PirtekUSA doing well

The financial losses suffered by Pirtek Franchisees are not rumors..just facts. The "some locations have closed" comment above needs to be evaluated. More Pirtek locations in the USA have Closed, been Terminated, Transferred or Abandoned than have been successful. More than 65% of the current Pirtek locations in the USA are struggling. Before you trust one thing the "franchise development department" says ask them to prove it. PirtekUSA lost money in 2009. The consolidated financial statements are available on the Web, if you can't find them email Pirtekpunisher@gmail.com for the link.
I will quote what the court says about the so called PirtekUSA "system" case number 6:06-cv-00566-GAP-KRS, Judge Gregory A. Presnell said." Pirtek’s system is not “unique” and is not entitled to protection; the operations and technology used in the Pirtek system are not complex; the hose and fittings used in the Pirtek system are akin to a “fungible commodity”; there is nothing special about a Pirtek hose that sets it apart from other comparable hoses available in the marketplace; and customers belong to the franchisees, and not Pirtek itself; instead, Pirtek’s only customers are the franchisees themselves". Most of the time there is not adequate margin or adequate customers to support the business. Pirtek admits they offer time savings. The words "proven system" mean nothing because Pirtek never defines what "proven" means. The franchise development department knows how many franchisees enter into the business and also knows how many leave, fail, go bankrupt ,close or get refranchised. Just a partial list of these would include Allentown, PA. Mobile Al, New Orleans, LA. Houston, Dallas and Plano, TX. Tampa, Clearwater FL. Portland OR (twice) Nashville, TN (twice) Miami, FL. Anaheim CA, Santa Ana, CA. Ontario, CA. The franchisees are barely making it in Sacramento and Oakland. Indianapolis recently closed. This is just a partial list, and the so called "system" only has 36 locations. So yes, I guess you could say after 30 years they have made a big splash in the USA. The web also has information concerning the Master Franchise agreement, which runs out in eight years. This puts any interested Franchisee in a pickle because the Franchisee has to sign a Ten Year contract.
Additionally every prospect should be very suspect of anything the PirtekUSA franchise development team says. They have predicted 24 locations in 2009, did not happen. They predicted as many as 18 new centers in 2007, not even close. The numbers do not lie at PirtekUSA and the truth never gets in their way.
PirtekUSA leaves out so many things it is hard to know where to start. First, the hoses and fittings used at PirtekUSA are not the same products used in Australia. It is generally considered that the Bridgestone/Intertraco combination is better. Many PirtekUSA hose fittings have metric nuts, which end up being larger and sometimes mechanically incompatible with american manufactured fittings that they replace. The PirtekUSA Franchise Development team does not tell you that some franchisees are contractually bound to " not speak openly about their experience with us (Pirtek)" PirtekUSA personnel never discuss all the onerous provisions in the Franchise Contract. ( the web has a copy of the contract, read that first, before wasting more time)
The numerous legal battles need to be discussed. Why did almost 50% of all franchisees file arbitration against PirtekUSA? For such a small number of franchisees the number of legal issues is huge, but the "development" department does not openly discuss this. PirtekUSA leaves out the fact that almost every franchisee knows zilch about hoses before they become franchisees. But if Pirtek was a sound investment here in the USA lots of experienced hydraulic pros would be on board, but those people don't get duped too often by the Pirtek sales pitch.
Every franchise has problems, its just to what degree do those problems cripple the business. PirtekUSA would have you believe that the warts are few and the rewards many. PirtekUSA would have you believe that after a few years you will have a viable, profitable business worth more than you put into it. But the records show that only a few centers have the original owner. The records show that more often than not centers are sold for a loss, or transferred for a loss. The records show that most centers have far more time and money invested in them than what the "sales pitch" claims. The records show that in the greatest industrial nation in the world, and after 15 years of pumping millions of dollars in advertising that PirtekUSA could dupe only so many Franchisees. The records show that every Company owned store lost money in 2009. Sure, they tell you that it will work better if the franchisee was on site..but consider that Pirtek USA takes back only the best failed locations. They scramble like crazy to keep these centers open, but they all lose money. That is not typically the case with other company owned franchises. If PirtekUSA really had a "Proven System" then they would be able to use that system to at least break even on the company stores, but they do not.
Lest you think I am all negative on PirtekUSA, consider the following. The concept is kind of cool. Mobile repair is growing concept. Most things, as time goes by, will be repaired on location. It makes sense to keep the fixed costs low. Trucks cost less to sit, if they have to sit, and are more flexible than most buildings. ( of course PirtekUSA requires a 2500 to 3500 square foot building too) Hydraulic hoses are everywhere. There are tons of different types of hoses Pirtek has nothing to do with. In the end PirtekUSA is its own worst enemy. Just about anyone could do this business and do it better without all the up front Franchise costs and no territory restrictions. The main purpose of a Mobile Fleet is the ability to cover turf. Sadly Pirtek USA contractually restricts your territory to a small geography.

Be careful of the Poortek rumor mill. Its your money.

Wow!!!

Wow this last post sounds like you are very bitter. With all of your bad mouthing you are doing if you put that energy in to some thing positive you may become an asset to society!!, instead of just looking like an ass.

Wow and Poortek

Obviously with only one retort, and a personal one at that, Pirtek must be pretty bad. Any non- emotional examination of Pirtek will tell the tale. No need for unfounded personal attacks. Normally, when the only response in a debate turns personal it means the debate is lost. BMM fosters the honest exchange of ideas and facts and opinions. The ASS in this case is you.

Life savings, WOW

Not bitter...Just saving innocent people a bunch of money from a con job. Poortek. Call Kurt Braatan or Bobby Moore or Dick Wilcox or Paul Gorney, or Scott Layer or Gil Boyd, or Ken Inscho, or any of the other 50 or so ex-poortek franchisees.

Thanks

I investigated Pirtek, and all I can say is"WOW"!. If you tattoo a "W" on each ass cheek and do summersaults it says WOW MOM WOW MOM over and over again. Pirtek has negative growth on the Franchisee side of the equation. I put together the notes from each interview I had with both the Zor and the Zee. I found holes in just about everything. ( get it? Holes..)
Zor says profits are good, Zee says not so much.
Zor says they are competitive, Zees say not really.
Zee says all team members make 15 sales calls a day.
Zor says the system works, if you make sales calls. Zor points fingers at two or three Zees, every other Zee points fingers at Zor.
Zee claims high prices, Zor claims high margins
Zee says trianing is poor, Zor says three weeks is plenty.
Zee says 50, 60, 70 hours a week, Zor says the system works.
Zor says there is room for 300 franchises in the USA
Zor says again the system works.
Zee says they will have to find about 295 suckers first.
I am not a Zee, and I will never be. WOW MOM WOW MOM.

Pirtek looks pretty good to me

I read all the rants here and after looking at Franchises it looked pretty good. I paid a visit for a Discovery Day and saw a bunch of professionals dedicated to the Pirtek System. Some with like 20 year experience. They are up to 40 franchises and the ones I talked to were very pleased with the results. Some showing some tremendous increases in the past 2 years. They explained the arbitration and how they won it with the losing franchisees having to pay all of Pirtek's legal fees. They are continuing to expand and plan to open 3 or 4 more Centers this year. I am planning on signing up for this franchise.

Yep..sure you are!

Okay...you have done all your research, they explained everything.  Let me just say this, " tremendous increases"  I know a guy that had tremendous increases in sales last year, he went up 100%...thats tremendous right...he went from $100 in sales to $200 in sales..he is still broke. You must be posting for Pirtek because they never discuss real numbers. Next  you say  " the ones you talked to"..did you talk to everyone?(franchisee)..nope..Called any past franchisees?  nope!...did you call me?  Nope...How did they explain Paul Bowes..How did they explain David Johnson?  How did they explain Bobby Moore or Dick Wicox, or Antione Vanden Boogaard?  How about Paul Porcelli or Kurt Braaten? All failed, some had nothing to do with the Arbitration..I can tell you this they did not get all of their legal fees..I can prove it..so they have already misled you. Additionally, they have never opened four..or three new locations in one year..ever!...But they have closed 6 in one year.  If you rely on the information you get from Kiwi or Arundel or Kevin Kelley or anyone at PirtekUSA..I have some great land for sale that you can open your new Pirtek on. Did Pirtek show you the bankruptcy files on the Dallas store and the Nashville location?  Nope..I have them..just ask me for them....This post is laughable, probably from some poor schmuk,...if you have enough money to buy a Poortek then you should read and heed...Remember in franchising it does not matter what they say to you..it only matters what is in the contract...call the guys in Oakland or in Sacramento..ask for the sales figures.

Also, remember this clause in the Pirtek contract. 

“In some instances, during the last 3 fiscal years, CURRENT and FORMER (Pirtek) franchisees have signed provisions restricting their ability to speak OPENLY about their experience with us. You may (want) wish to speak with current and former franchisees, but be aware that not all such franchisees will be able to communicate with YOU” ! 

   So why do you think they put this in the Pirtek contract?  Consider this from the courts..

case number 6:06-cv-00566-GAP-KRS, Judge Gregory A. Presnell said. Pirtek’s system is not “unique” and is not entitled to protection; the operations and technology used in the Pirtek system are not complex; the hose and fittings used in the Pirtek system are akin to a “fungible commodity”; there is nothing special about a Pirtek hose that sets it apart from other comparable hoses available in the marketplace; and customers belong to the franchisees, and not Pirtek itself; instead, Pirtek’s only customers are the franchisees themselves

  I cant find a winning franchise that has commnets like this from any court .  Call me and I can easliy point you towards plenty of documents that you will not see at "discovery days"........but then again some people can't handle the truth.  Regards, Scott ...fixxme@aol.com