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Entrepreneur and Today Show Features Best Franchises

23 Comments

Entrepreneur Magazine A Quiznos Patsy

Entrepreneur Magazine does no research, asks no hard questions, crunches no numbers, and puts out a best franchisor list that is absoluteley worthless. The only best lists Quiznos belongs on is "Best At Ripping Off Franchisees" and "Biggest Franchise Ripoffs of 2008". Q is the king at siphoning franchisee wealth, over-developing markets, and churning stores. The self-proclaimed "fastest growing QSR" has seen at least 80 stores close in the past month. Quiznos is a rip-off, a scam, and a lie.

Entrepreneur and Today Show ----Picks Mislead the public

The criteria that Entrepreneur uses obviously doesn't involve the success or failure rate of first-generation franchisees and only looks at the success of the franchisor.

They must be looking only at the overview of these franchises ----who, of course, do a lot of advertising with them and ensure their existence.

There ought to be laws against this kind of false advertising that the franchisors use to sell their franchises to unsuspecting prospects. The media is always looking for "product" and apparently Entrepreneur has immunity under the law for spreading false information to the public. The business media completely accept the Entrepreneur Top Picks and help to spread false information to prospective franchisees with immunity and impunity under our laws.

The Today Show, a respected classic on TV, should be ashamed of itself.

Jim Coen's picture

The best and the brightest?

If the 5 companies listed above are franchising's; "best and brightest", things in franchising are a lot worse than I believe they are.

At least 4 of these companies would go near the bottom of my list of the "best and brightest" franchises out there.

The list is more evidence that Entrepreneur Magazine doesn't have a clue.

Jim Coen

Email: Jim@franchiseperfection.com
Blog: Lets Talk Franchising

michael webster's picture

Statistics - Bogus

Holy dog crap, do people not read at all?

Here are some bones from the last Just Dog's UFOC.

1.  Item 20 claims that they have not terminated any franchises, but their financial statements indicated that they "reacquired" one franchise.  Oops, somebody ought to point out this little error to them.  As of the end of 2004, they had 20 stores with one failure- already below the 87% mark.

2.  The financials also show that at the end of 2004, a total of $37.6k  in royalties for apparently 20 stores.  Uh, each store is paying $2k in royalties?  At 5%, that amounts to $40k gross a year.   Hmm, but our new franchisee is expecting $200k gross.  Something is wrong here.

3.  Check out the departed executives and growth in the high end of item 8, up to almost 300k in 2005!   Ironic, considering the franchisee's reaction to a 300k franchise expenses.  Note that her own estimates are less than the item 8 lower end.  Why?  Can she count properly?

4.  No more UYFOCs on Caleasi since 2005.  Hmm.  Did they go out of business after this wonderful write-up, or just fail to file?

5.  "Someone's proven business model" for a business opened in 2003, which was talked about in 2005.  Very low levels of proof are required, I assume. 

Michael Webster PhD LLB

Franchise News

Quiznos

Just looking at their #3 pick Quiznos, I found one website with 400 stores for sale many at rock bottom prices.

michael webster's picture

Other bogus statistics

You should have at least read the item 20 and told us what they should have been.  You need to do some work to bolster your claims.  We know your conclusion, give us new evidence. 

Michael Webster PhD LLB

Franchise News

franpro's picture

Entrepreneur Magazine /Today Show

Jim,

I agree! As a matter of fact, if a brochure for those company's ever made it into my office building, I would smell em.

Entrepreneur Magazine is in the business of seling advertising, and nothing else. When I was with Frannet, I was so amazed that Jeff Elgin of Franchoice could be the "expert" on franchising for the mag, as opposed to Howie Bassuk, who founded Frannet, and gave Elgin the idea for Franchoice, inadvertently.

Then I figured it out. He PAID to be an expert.

Amazing.  

Franpro 

Entrepreneur ---bogus statistics ---UPS

I still remain convinced that it must be a violation of Securities Law or something when Internet Sites push UPS stock options to the public based on a #5 Rating in Entrepreneur Magazine.

Or, am I wrong? UPS did maximize their profits on the backs of store owners. This is true.

But, the network, as displayed in their Item 20's for the past two reporting periods, is in trouble if all of the transfers are indeed failures of their franchisees.

Isn't it unfair and malicious of UPS and Entrepreneur to mislead new prospects with this #5 Rating?

franpro?expert?

More Amazing! Entrepreneur magazine has done more for franchising than you could even imagine. To rate Jeff Elgin with Howie Bassuk is also ridiculous. Jeff was very successful as an executive with Great Clips and others. Howie was a bust at being a zee and had a computer sales background and got the frannet idea from a gal in Denver named Green I think. I'm not a fan of either but less a fan of Franpro as being a pro or expert with your background. I don/t see a problem with your claims but when you down grade others who have contributed to the franchise industry then I need to speak. Why don't you and others on this forum try more to improve the franchise business and try to understand why companies like the 5 mentioned were so successful and selling franchises at the expense of their zees. I guess I will be called a ranter too.
Franchise believer person.

Maybe Entrepreneur relies on FranData Snapshots

Maybe Entrepreneur can defend itself by indicating that it gets its information straight from FranData, the UFOC, and the franchisor, all of whom cooperate to hide the success and failure rate of first-generation franchisees.

Juan F's picture

Improving the Franchise Day by Day

"Why don't you and others on this forum try more to improve the franchise business" - Angry franchising guest

Some of us think that Franpro and others in this forum are doing plenty good at improving the business.

It seems some in the franchising establishment get plenty mad when Franpro calls it as he sees it.

Regards,
Juan F
Franchise Champion

franpro's picture

To "guest" wanna- bee ranter

Although Don let's anyone post to this energetic forum who wishes to, I will tell it like it is again.

"Unless one is willing to spend 2 minutes to register on this site, and give a name of some sort, some backgound info, and other assorted stuff, I do not spend more than 45 seconds digesting their comment, and will not engage more than once."

Elgin is a talented salesperson, and he knows franchising. Howie Bassuk {who I am NOT a fan of} is a freaking genius-off the scale. Those on this here site that really know me, and what I stand for, know that I am pro-franchise. I am also pro-"life is too short/I will speak my mind, and be truthful."

Register here. Don't be so shy. or not.

Franpro

Cleveland 

THE ENTREPRENUER MAGAZINE

I SENT IN A REQUEST TO THE MAGAZINE AND ASKED "HOW MUCH INCOME DO YOU RECIEVE FROM UPS/THEUPSSTORE". NEVER HAVE HAD A REPLY. NO REASON TO WONDER WHY, MONEY TALKS ZEE'S WALK TO THIER NEW HOME. A CARDBOARD BOX,

Read the fine print!

You will find that entrepreneur blatantly admits that its rankings are based not on franchise profitability, potential or satisfaction.

They only rate the stability and financial strength of the franchisor.

This is to the detriment of the potential franchisee who relies on a entrepreneur ranking in making a decision. Who gives a rat's ass if the francishor is making a bundle, I would rather have an opportunity that would make me a bundle even if the franchisor was on shaky ground financially.

Besides, to quote an executive of UPS/MBE:

"you are not entrepreneurs or you wouldn't have bought a franchise."- Don Higginson in selling the gold shield concept in 2003 -

His obvious disdain for the hard working center owners was a key element in my decision not to become a The UPS Store! - I was simply amazed that those assembled gasped, but the majority went on to convert!

franpro's picture

Thanx Juan

Thanx!

Franpro 

Why should they

respond to your request?  What good does that do them? 

If you really want to know how much they spend, find out how often they advertise and what type of ad it is (Full page; 1/2 page; black/white; color).  Entreprenuer shows the cost to run ads in their magazine on their website.  Of course there may be other charges or discounts, but this could give you a rough estimate. 

Entrepreneur helps ZORS to Rip Off prospective franchisees

In an industry where the government, the SBA, will guarantee loans on proven concepts that are only proven to work 50% of the time, more or less, over the long term of the contract, you need a lot of help to con the public.

Just think, AARP picked up Entrepreneur's Top Ratings and put this misleading information out to their readership and even The Today Show hyped unviable franchises like The UPS Store to the public.

Don Higginson, in selling the gold shield concept in 2003, understood that he could get away with selling anything he wanted to sell with immunity and impunity under franchise law. His eye was on the doughnut and the franchisees fell through the hole.

Where's McD?

"You will find that entrepreneur blatantly admits that its rankings are based not on franchise profitability, potential or satisfaction."

Wonder why they don't rank McDonald's? It is arguably the most profitable and stable franchisor on the planet.

Wendy's?

McD Is Nowhere To Be Found Because . . .

McD and Wendy's are nowhere to be found in the rankings because most likely they are not Entrepreneur advertisers.

Entrepreneur

Why dosen't Entrepreneur disclose the amount of advertising money it receives from the franchises it supposedly evaluates? The UPS Store, for instance is a heavy purchaser of advertising from Entrepreneur -- maybe the top sponsor. Has anyone visited the Entrepreneur.com website lately? Am I the only one who sees The UPS Store ad in the top position?

To be in the Entrepreneur 500

 No mystery here a franchisor must submit their UFOC to be included in the Entrepreneur 500 . 

The Truth Shall Set You Free!

TIF

Entrepreneur and UPS

You are not the only one. In order to keep their No. 5 position on Entrepreneur ----that they use to try to sell new The UPS Store Franchises to new prospects (victims), they have to continue to spend lots of money running ads in Entrepreneur.

Disgusting abuse of the public trust but apparently just normal business ethics?

How many of the public who read Entrepreneur know that the ratings are just based on the financial success of the franchisor who stands disproportionately on the bodies of first-owner franchisees who are calculated sacrifices to the visibility/viability of the franchise network?

Actually

McDonalds is listed as #9 of the top ten franchises on Entrepreneur for 2007.

Check it out!

As to Wendy's I am not sure, I COULDN'T find them on the site, but not sure they are not listed somewhere.

About Bob Frankman

Bob Frankman's picture

Public Profile

I'm a franchise owner and I tell it like I see it.

Area of Interest
Franchise Operations