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great topic
It good to get shared.
<a href="http://motherload-cheats.com">Motherload Cheats</a>
<a href="http://onenightinparisvideo.net">One night in paris video</a>
<a href="http://restaurant-city-hack.com">Restaurant City Hack</a>
.FranchiseFactsUSA.com & survey; never heard of 'em.
I'm an active franchisee, involved in the litigation, watch a couple of boards, have heard of you, and your reputation, have never heard word one about the above-mentioned website and survey, suspect you're attempting to use this thread to further your own interests. Stop it, now. This is not about you, nor your agenda.
PShoom is listed on the lawsuit! He has a right to his opinion!
Mr Shoom's name is on the lawsuit! Let him express his opinion, and push this website (and it's survey)! It might help others!
this is about perry shoom
this is about perry shoom this is who it is about. he has already supposedly written a book about all this. I wonder if he will donate the proceeds to the lawsuit. He has been a thorn in the side to most of us.
Hey Perry...
What about the book you've mentioned in the past ???? Is it going to be out soon ??? Or are you waiting for your case to conclude ????
I encourage all franchising data
When it is truthful it assists franchisees to make better decisions. When it is manipulated misinformation we get to tear it apart and in so doing we allow prospective franchisees to better understand what forces they are up against.
Only simpletons would consider any survey as the end of their franchising education. There are too many to be duped to waste too much time.
Want data? Go to platinumshieldassociation.com and read ...
...the complaint! The entire lawsuit as filed is right there under "click here for current complaint" (in blue). It details all of the causes for action against UPS. This is what is being argued in court. Want a source for UPS's intention to open 500 competing centers? It's there! Charges of misrepresentation? There too! So, to prospective TUPSS franchisees, do your due diligence! Start there! Journalists? Go there! Lawyers posting to this website? You too ... go there! This is all a matter of public record. But do be advised ... this is a complaint, not a verdict, and UPS is denying any wrongdoing! So be it! That's what the court is there to decide! But if you want in on the discussion, first, do your "due diligence"!
Refund please!
Where do I go to get a refund for all the money I have lost and am losing daily with my iSold It store in CO?
I know its not going to happen but I can dream.
THE PIZZA FARM
MY DAUGHTERS FRIEND IS TRYING TO TALK HER INTO PURCHASING A FRANCHISE FROM THE PIZZA FARM. THEY ARE IN CA. WHERE A BIG PART OF BUSINESS IE SCHOOLS SEEM TO BE RATHER HURTING NOW. I QUESTION THE WISDOM OF EVEN BUYING A FRANCHISE LET ON ALONE BUYING INTO THIS ONE,HAVE TO A GET A FARM, THEY HAVE NO HORTICULTURE EXPERIENCE . WHAT IS THE DEAL TODAY ON THE PIZZA FARM, DO YOU MAKE MONEY OR JUST HAVE FUN?
THANKS I AM HAVING A HARD TIME GETTING THE NOT SO CUTE SIDE OF THE PIZZA FARM.
Off topic, but...
Sounds like another government takeover attempt!
"In the decade since the first Pizza Farm opened its gates, Darren’s idea has been honored by the United States House of Representatives, the California State Senate and Assembly, city councils, the Fresno and Madera County Offices of Education, the California EPA, 4-H, the American Farm Bureau Federation and the Agricultural Education Foundation."
With accolades like these you can bet it's doomed. But seriously...it's "cutesy" and a fun read. Should be added to the whack list.
Even more dangerous these days than not being able to renew
is the likelihood, if your business is doing well, that another, larger, favored franchisee may want to take it from you for nothing or that the franchisor would look to find a way to terminate you on trumped up grounds so that your business may be taken from you without compensation.
Dunkin Donuts frachisees are complaining that this is happening to them. I have heard personally and seen in here on BMM that Subway franchisees have had similar experiences.
In my own experience, on at least three occasions one of my clients was trying (even successfully one time) to take the business of another franchisee client. The predator went to the franchisor and said he knew where the other franchisee was falling short - to put it nicely - and that if he could have a chance to acquire his territory, he would do a pretext visit to the target franchisee's busiiness under the guise of offering to buy it and report back all his negative discoveries.
The target client franchisee got a termination notice and we tried to block the takeover by the franchisor. At a deposition of the franchisor's representative we asked for the source of the negative information the franchisor claimed to have, and the witness identified my other franchisee client as the source.
I consider it two acts of extreme grace that nenther my targeted client nor I stuck a knife into the bastard who sold out his brother franchisee to promote that agenda.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
The Dunkin story
Renewals are of critical importance to Dunkin Donuts franchisees.
However, in the cases Richard cites the existence of a renewal would be essentially irrelevant in the Steve Horn scheme of grinding franchisees out of the system and caturing their equity. So in that perspective, Richard is correct about renewals being meaningless.
However, most of us have good, solid businesses and many are in theirsecond and even third generation. I can tell you that renewal rights are important to our bank lenders. If you have to spend beaucoup bucks to remodel your shop and you don't have a full term left, it has become nearly impossible to get the loan to do it. It is fully impossible if you don't have some other collateral besides the business with diminishing years left on the franchise.
In our case, the failure to have evergreen or at least constant renewal rights will kill off the franchisor as well as the franchisee in the not so long run. If you cannot put money back into the business, it will not continue to succeed.
Though the headline was Quiznos
When I read the headline I thought you were talking about Quiznos. They went from 5,000 stores down to 3,636 so far to date.
Q Is Lower
3200 according to what a reliable source heard at a meeting this week in Denver. You can't trust Q's numbers, whether it's food cost, ad budget, or open restaurants. Schaden's a born liar and a lot of his associates are convicted..
I believe in having a vision
In our case franchising killed everything we build. That is why future franchise wannabees be cautious. Find a good concept and really study the FDD.
The old system worked perfectly well for the old boys
Very good points but I would suggest that the legal and franchise systems were natural allies in a former, post-industrial era. It's been an okay ride but all dogs and polyester suits have their day, I would suggest.
"Up" and "more" and "growth" every quarter may actually not be infinitely sustainable concepts.
Franchising relied on a certain data flow that does not exist anymore.
Reputaiton + internet infomation sharing + trust + human memory may actually trump the next Herb Tarlek system offering. The question has moved way beyond "which one", even past the "none" option: it's loud-and-proud buggy-whip salesmanship time.
Empires (and, mercifully, fashion) change and fade away into irrelavance.
Les Stewart MBA FranchiseFool :: WikidFranchise
But will UPS, the biggest crook, use their influence, power...
...and money to sideline any legislation meant to protect the interests and preserve the legal rights of the "little guy" franchisee? United Parcel Service, one of America's largest corporate enterprises, is turning out to be one of the worst perpetrators of mass fraud and deceipt that can be found in the entire U.S. franchising industry! These allegations of misconduct and corporate thievery will be proven in the upcoming Class Action trial, a "status conference" to be held in early January of 2010! Gordon & Rees' attorneys will be presenting a very strong case, one which alleges both negligent and intentional misrepresentation of material facts in regards to the fiasco/fraud known as the "Gold Shield" program, a now uncovered plot to convert profitable Mail Boxes Etc. centers into unprofitable (for the store owner) The UPS Store locations! In accordance with UPS's devious and well thought out plan, all of these stores have morphed into unpaid drop-off locations that predominantly service UPS's Internet and corporate accounts businesses, and not the business of the small and vulnerable UPS Store franchisee! They steal the commerce and dollars he needs to simply keep the business open! Funds are siphioned off by this greedy, giant Corporation to the detriment of this hard-working, yet easily victimized, "little guy" store owner! UPS makes all the money, he does all the work! ...and also pays the bills that keeps the easily accessible storefront "drop-box" open! So it is fantastic that President Obama is now aware of the problem of rampant fraud and abuse that can be found throughout the entire mega-billion dollar U.S. franchise industry! Led by UPS, these vipers and con-men have destroyed the lives and dreams of many an innocent entreprenure, the hard-working but victimized business franchisee! But again, UPS has alot of money, and no doubt they will try to influence (to their benefit) legislation covering laws concerning U.S. franchising! Hoping to operate above the law and without observing high standards of [business] ethics and moral principle, UPS will surely try to buy their way out of the fraud they have allegedly (but soon to be proven actually) committed! Lets hope they fail both in lobbying lawmakers, and in screwing over the much abused and very frustrated UPS Store franchisee! 2010 may be a good year for the entire franchise industry..if they can get rid of the crooks and allow the many honest and trustworthy franchisors to operate, grow and profit in a fair and equitable manner! In the U.S. Government, the small guy may finally have found a very valuable and trustworthy friend!
Q Weight Loss Spokesman
Big deal. As a Quiznos franchisee I worked so many hours, got so little rest and ate so little from the stress that in the one year we owned it I went from 215 to 157 at 5'11''. Of course as the winner of Q's biggest loser program I didn't lose just weight. I also lost my $300,000 investment which translate to $5,000 per pound. A little expensive but you really can't put a price on health, eh?
Boat trip
How many dealers refused to have dinner with Jeff and Boots on the Alaska cruise. Didn't Jeff send Joe to threaten the troops if they didn't immediately report to the place Jeff was eating. Leadership, that's a perfect example of the PMD management style.
Recent pictures of Jeff indicate he's at dinner most of the time. The guy gets bigger by the day.
re: Boat trip
Epic display of Joe Armetta's lack of composure. Joe snapped and threatened Mitch publicly with termination. Mitch proceeded to refuse Joe's treats.
Basically Mitch publicly PUNKED Joe Armetta. Unfortunately, vaious PMD wife's left the table crying.
I'm not sure what Joe Armetta did to qualify for the cruise? His performance for 2008 was obviously substandard.
For 2009 PMD has been a clinic in dysfunctional leadership. Hopefully 2010 will be a better year.
Welcome to the NFL!
There are several notable exceptions- even amongst the great.
Even if you limit the market to new project franchisees of the great who have come to me to extricate them, you are talking about close to a dozen real bozo deals that the franchisees wish to heaven had been competently vetted.
Within even the great companies like a Marriott or any of the others, terrible things happen due to the politics of management.
When that happens and the economics turn out not to meet the targets the sponsors within management told the committee they would meet, those management sponsors seem always to look for ways to change the economics to their favor by taking it out of the franchisees' revenue stream.
When this happens, there are enough trap clauses in the franchise agreement permitting changes in how the system operates to enable fees and charges to be imposed beyond what was in the concept when acquired or first rolled out.
Especially for this reason it is very dangerous to buy a new concept franchise from a major company. If the history of the concept turns out not to produce the promised contribution dollars, the franchisees are put upon to make up the difference.
This goes way beyond hotel franchises. The big successful name is never an extraordinary positive reason to invest in its franchises. It often seems like it is, and it is always sold as if it is, but those are false impressions more times than not.
Richard Solomon, FranchiseRemedies.com, has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School
Since 90% of all franchisors
Since 90% of all franchisors make no earnings claims in Item 19, I would imagine there are a great many franchisors who are breaking the law by using the system-wide sales in trade publications and the media.
But, of course, the FTC doesn't enforce the prohibition against earnings claims (FPR's) made outside of the FDD's and the franchisors know this. There is no private right of action anyway for violating the FTC Rule for franchisees, and probably the violators would only have to go to "school" and the violation would be obscured from the view of the public. What a joke! The FTC Rule is just a subsidy for the franchisors.
What about startup costs that are an implied earning claim or financial performance representation that doesn't have to be substantiated with any FACTS that the FTC permits the franchisors to use with impunity on the Internet in spite of their so called advertising rules that prevent unsubstantiated performance claims.
the hag is back
I thought this nasty old hag was banned from this site? Up to her old ricks again I see.
The FTC Rule is just a subsidy for the franchisors.
Does anyone here challenge these ridiculous accusations?
According to the hag the FTC rule exists for the singular purpose of subsidizing franchisors. Does any lucid individual think that is actually the case?
This is nonsense. This old broad cannot get over the fact she married a moron and beget an idiot. Because these imbeciles were STUPID enough to go into the pac and ship business we have to endure her endless diatribes, same thing over and over again: The FTC is at the beck and call of the franchisors. The GOvernment is in conspiracy with the franchisors and, now drum roll folks, Carol then will claim only more Government is the solution! Mind you this is the same senile old bat who wrote letter after letter to the editor supporting John Edwards as a fine upstanding moral man, the man we needed to lead this nation and do what was right for our families ! Yes, what a fine specimen of family values he turned out to be.
Here this an here it loud you stupid nasty old hag, the FTC nor an Government agency could not and can not protect imbeciles like your STUPID husband or your retarded son from being total idiots. They were the problem, they bough into a stupid, stupid concept because they were morons. Al the disclosure in the world could not protect them from their own stupidity. Heck it is obvious, did the Government stop your husband from marrying you? Heck no it did not. And as result he had an idiot for a son! How come you are not whining about that? Shouldn't the Government sterilize morons such as yourself? Doesn't it have duty to minimize the impact on morons on the productive members of society?
The FTC and the Government is not the problem, idiots like you are the problem.
Class Actions
Of course, naive and unsophisticated franchisees have no understanding of how a "bankruptcy" of a franchisor who has borrowed funds under a "whole business securitization" can influence the judge and the attorneys involved in class actions where "fair" settlements would put the franchisor in danger of bankruptcy.
The Judge is put between a "legal" rock and a hard place, isn't he. If he doesn't approve the "token" settlement and the franchisor does declare bankruptcy and reorganize, the franchisees who have secured judgments are unsecured creditors and would get almost nothing, instead of pennies.
Whole Business Securitization is a Prudent Practice
Carol there is nothing nefarious or untoward with regard to Whole Business Securitization.
Nothing Nefarious or Untoward in Whole Business Securitizations?
Never said there was, did I! All very legal with new accounting rules, and everything -- and part of the "stacked deck" against franchisees under current law and regulation and the Class Action Fairness Act.
It may be in the future that even those who invest in the franchisor's paper will question whether or not "Whole Business Securitization" is a "prudent practice" as you say -- that is, if the Government won't continue to bail out those who sell bad paper to the public out of the need to protect innocent Institutional Investors.
http://thegreatfranchisingrobbery.blogspot.com
You more than implied it...By describing it as part of a
"stacked deck".
You conflate contract law, class action litigation, bankruptcy law, accounting and franchising into some kind of diabolical construct with one problem. You don't have any idea what you are talking about. You make no sense.
You might make sense to an anarcho-communist at the next G8 conference.
Except with Jon Luther
Jon Luther is scheduled to be the Chairman of the IFA.
He has been head of Dunkin Brands where he has done nothing but talk to franchisees since he has been in control.
Not much two way conversation there, Jon is a one way street when it comes to conversation.
I ask any Dunkin Donuts franchisee to tell us one thing Jon Luther has done to put money in your pocket.
Jon has a hearing defect when it comes to franchisees.
He has done nothing but take from franchisees:
1. Litigation against franchisees, aka Steve Horn
2. NGSS - Promises and representations never materialized
3. Supermarket Coffee - 100's of millions out of franchisees and DCP pockets
4. NTO's like Hess Gas Stations
5. Sara Lee Channeling
6. Westward Ho, on the backs of the DCP, and national advertising
7. Advertising Ad Fund disclosure, yea right
8. Jon's Mini Me: Joe Scafido, what has he done for you, we haven't seen a home run new product since.......bagels?
Jon may have two ears and one mouth, but he never uses them in that proportion.
As chiarman of the IFA he will never listen.
Just watch him smile, he has a very big grin.
How come more Granville's don't write?
It amazes me that Granville has been the lotto winner here and chosen a worthwhile zor. How many grand stories do we hear of? Not too many. Regardless I am happy Granville is so lucky to had found a great zor. He is also very lucky to have all the knowledge. Aren't you a lawyer Granville? Us unfortunate former zees who weren't very lucky had to be the guilty ones, right? I suppose you think misrepresentation in enducing a person to sign on the dotted line is okay. You have to know the whole stories of all the taken ones. You are fortunate than most. You have alot to be thankful for this Thanksgiving season.
too busy counting their money and running their business
"It amazes me that Granville has been the lotto winner here and chosen a worthwhile zor. How many grand stories do we hear of? Not too many."
I have said before that BMM is a symbiotic organism for: 1) Hurt Zees to "testify" as to how they were taken; 2) Wannabee Zees who are absolutely clueless and ask things like "so what is the best franchise to buy"; 3) Consultants who offer to provide Killer Due Dil (for a price). The Hurt Zees scare the Wannabees into the arms of the Consultants.
Meanwhile the successful Zees have little reason to take the time to post here. (I just do it for amusement.) They don't feel a need to be heard or validated, or to "warn others".
Of course there are rogue Zors. There are also Nigerian Money Order scammers on the internet. So many of the Hurt Zees seem to be credulous "nice" folks who would also cash money orders and remit the proceeds thinking they had a Home Occupation. The difference is knowledge. Go ahead and hire someone to do your Due Dil as a substitute for your own knowledge.
My wife had years of experience in the system we later bought into. She was General Manager for the Zor and had run several Zor-pwned units. Does your Zor have Zor-owned units? Can you go work in one as a Manager? Our Zor doesn't have commission sales agents going around selling units. Basically, you have to convince them you are qualified to have one. There is no such thing as a SNO in our system. We do not buy any food or paper from our Zor. Etc., etc. Our "local" Zee co-op (small region, something less than 100 stores) meets monthly. The larger combined Zor regions (about 500 stores) meets quarterly. National is every couple of years. Why would you buy into something that doesn't have at least most of this?
Many of the horror stories posted here would have been obvious poor deals to anyone with deep industry knowledge. (I differ with the prevailing zeitgeist here that claims that as long as you hire Killer Due Dil you will be okay.) Why would anyone with any knowledge buy such crap? Having actual operating knowledge in the industry you are going to be in business in, helps a LOT in avoiding bad deals. I pity the fools who go in with no knowledge thinking it isn't necessary as they are buying a "proven system".
And that's why few successful Zees post here. They don't need to. There are thousands and thousands of us, and not just in our system.
follow-up: preparation does not ensure success
But it sure makes it a heckuva lot more likely!
It is human nature to take credit when one is successful, claiming it is due to their hard works, smarts, dedication, etc. Just as it is human nature to blame outside forces when one fails. There is a degree of luck involved in both success and failure but over time people do indeed MAKE THEIR OWN LUCK.
Go in on a wings and a prayer, knowing little to nothing, depending on the "proven system" and two weeks' training to make you successful, and you will NEED to be lucky to succeed. Whereas if you knew WTF you were doing to begin with, you'd be a lot less likely to buy into one of the low percentage, most Zees doomed from the start, systems that we here so much about. These systems are structurally deficient and in some cases exist only to make money for the Zor selling franchises and collecting franchise fees.
Yes, as has been noted, I am a lawyer (NOT a "franchise lawyer") but also a professional business/financial manager (complete with MBA). I have owned several businesses before, and I have run departments and divisions of larger organizations. And my wife had years and years "in the business" working for the Zor. You don't have to be as qualified as we are to be in business, but it sure helps. Being a Single Mom who raised a family on a tight budget, etc., etc. may make you a Nice Person but it isn't a business qulaification. Being newly unemployed isn't a business qualification.
As I have said before, DON'T BUY A FRANCHISE IN A HURRY. Jeez, I even wrote an article that was posted here on BMM about that very subject. Know what you are doing going in and then you wouldn't be dependant on Killer Due Dil from a consultant.
You don't understand its not luck...
Selecting a franchise and being successful have little do to with luck.
In fact people who fail tend to be believe luck determines their fate and isn't it convenient that if it is all about being lucky then why bother being diligent since it won't matter.
Barbara we make our own luck.
Have a lucky weekend!
Thanks for a lucky weekend
However, if you do not believe there are rouge zors out there, who is being realistic? If most in a franchise system have been screwed, doesn't it seem too obvious?
Re: Thanks for a lucky weekend
No it's not obvious in fact your post missed the point entirely.
You don't believe there are scammers in
franchising? It is always the victims fault? If this is true NO ONE should go the franchising route.
Barbara you are viewed as a benign poster on BMM
But the reality is your posts perpetuate bad practices, poor decision making and the belief in luck by potential franchisees. You are a danger to yourself and others. You lack wisdom.
You are no more an authority on franchising than Solomon is on the mating habits of Big Foot.
People who have been victims of rouge franchising
are indeed experts. I do not encourage bad practices or poor decision making. You saying this shows your lack of wisdom. You must be a zor or a shill.
Those Red Commie Rouge Franchises
very appropriate for you, Barbara.
Red Commie Rouge Franchises
I like it. Great name for rouge zors. I can come up with more. I am afraid it won't be appropriate to post what names I have for rouge zors.
Barbara...
It's Rogue not Rouge.
Thanks for the spelling correction
People who love to write always need an editor. Thanks.
People who love to write...
should still think first about what they have to say and then write!
Is that what's wrong with you?
Umm!
Umm...Indeed!
Please Barbara, you may think you are helping but you are not. You advice is barely actionable...avoid 123Fit, Quizno's and Smashburger, what then pussycat?
You are making me laugh
Thanks.
Barbara...well there is laughimg
I implore you to seek qualified help.
I am sure you are an expert in seeking
qualified help.
So far all you've done is show you are on the wrong side. The side that purposely hurts people. Who really needs the help?
Barbara, you are being foolish
You are clueless and self-deceived.
Clueless? Self-deceived?
Guest, please look in the mirror.
I see myself very clearly...
Barbara please quit embarrassing yourself and get help.