Patriot Express

Is government helping vets and patriots with their small business / franchise initiatives or hurting them?


Thanks to Richard Solomon who tells it like it is. The facts of franchising like the facts of life have to be faced. The IFA does have a tube into the FTC and to the state legislatures and to Congress and to wherever else it is necessary to go to buy subsidies for franchiors. Franchising is an industry that both state and federal governments count on to keep their economies going.

The blood of the victims of franchising is quickly hosed off and out of sight and those in power who even think about franchising rationalize that sacrifices have to be made in the service of the public good. If naive and uninformed franchisee prospects are the meat of a good economy, so be it! The end justifies the means. The bleating of the sacrificial lambs is not heard when they are dispatched in failure to the franchisee graveyard.

The UFOC's are just a license for franchnisors to operate and a license to steal for those who are inclined to steal and the regulatory will and the money is not provided to enforce laws that might protect franchisees from vehicles for fraud. Churning is what makes franchising so durable and government doesn't have to look at churning because this process is not required to be disclosed under franchise law --apparently, by design.

The brutal truth gives me a stomach ache. I wish it weren't the truth and that I could believe in truth and justice and fairness, and my government and the courts and my fellow men. I wish I could again be back in high school debate in civics with my ideals in place. I wish I could believe in God and in the rule of law, both of which I now realize may be an invention of the smartest and most powerful of mankind to control mankind for special interests. The history of the world tells the true story of human nature that hasn't changed since we started to record the history of man. Human nature is reflected in coporatikons and in government. It can't be otherwise and this is a fact of life that must be faced.

The Patriot Loan Program sponsored by the SBA is a creature of the special interests, the IFA and the Banks and our Government, who also gains, that may help some returning Vets and their families and the other targets of this initiative. However, even the SBA isn't sure because this is a pilot program. The SBA knows, however, that this will be a success for the franchisors and the banks and the lenders who stand only to gain and not to lose from this initiative, and it may produce more jobs for Americans, as well, and more taxes, etc.. for government.

The real failure rate of the franchises that are on the SBA Franchise Registry will not be disclosed to this target group and these vulnerable and naive targets will be exposed to vehicles for fraud that appear to have reasonable SBA Loan Default rates that make them look like good investments.

Richard tells the truth. The only defense is killer due dilligence before and after you sign a franchise agreement with a really tough franchise attorney who will protect your interests. I still believe his $1,000 due diligence NEGATIVE due diligence offer is one of the best deals around and that franchisee prospects will be safe with Richard.

I am going to continue to try to warn about the Patriot Express Loan Program because I do think it will hurt a lot of Veterans and Retired National Guard and Reserve who will be looking for a way to earn a living and will think a franchise, a business of their own, is the answer to the problem. A good and viable franchise opportunity where the odds of success are high can be a solution but a lot of those franchises on the SBA Registry are Vehicles for Fraud that is hidden in the UFOC's.

on July 5th, 2007


Tinker! you have been gone for a few days.

Perhaps you don't know that the SBA, through the Federal Register, has now initiated the establishment of the Patriot Express Initiative for the entrepreneurial section of the Nation's military community that are being significantly affected by what is expected to be a protracted war on terror.

This SBA Initiative and special loan will be available to Veterans, National Guard, Reserve, Retired Military and their spouses and is a PILOT program for the SBA.

As you know, Tinker, the failure of the SBA and/or the State Regulators to report the failure of first-generation franchisees anywhere in the UFOC's permits franchisors to disguise the actual and true failure rate of the "proven" business plans that are offered for sale to the public in the form of franchises.

Apparently, franchises are not covered under consumer protection laws of the states and only under INEFFECTIVE FTC and State Regulation that does not require the disclosure of the material fact of the business failure of first-generation franchisees who finance and build the units for the franchisors.

You know that, additionally, the appearance of government endorsement of these franchise opportunities is overwhelming when Fran/Vet discounts and special financing, both, are offered to the military community by the government. While the SBA does have a weak disclaimer on the SBA Registry, the appearance of government endorsement of the franchisees on the SBA registry overcomes the weak disclaimer, especially when prospects are considering those large and very visible franchise networks on the American scene.

It seems unconscionable to me that our government would put the enrepreneurial sector of the Nation's military community, its veterans, at risk by encouraging investment in franchises whose actual and true rate of failure are obscured from the view of the veterans and from the view of the government.

What is going on here?

on July 6th, 2007

SBA Loans and New Jobs Added to the Economy

We can see that the recent SBA Loan Initiative, THE PATRIOT EXPRESS LOAN, to lure the "entrepreneurial sector" of the military community; vets and retirees, National Guardand Reserve Troops, was intended to keep those job numbers high for the next general elections in 2008.

It appears that it isn't enough for the government to support bad foreign policy through the use of our troops, now they want the troops to help them with good job numbers in the next election.

Do you think, Jim, that government is aware that the real failure rate of these franchises that the SBA will push to Veterans through the SBA Registry and the Vet-Fran offer and now, the special initiative pilot loan WILL BE HIDDEN FROM VETS AND THEIR FAMILIES IN THE TRANSFER COLUMNS OF THE STATE UFOC's?

on July 6th, 2007

Dwyer Group bought by Riverside --a private equity firm!

Response from this post.

And why isn't franchising regulated as closely by the FTC as Securities are regulated by the FTC?

How disgusting that the little low-paid and expendable franchise investor on the bottom of the heap supports these business empires with cheap capital and cheap labor, and under the status quo and the law is just an expendable log in the fire of development and speculation in our greedy capitalistic not-so-democratic Republic.

I will think about identifying myself, Richard. But, I would hope that your concern for our veterans who are the targets of Dwyer-Riverside, the private equity firm, would permit you to comment on this matter on Blue Mau Mau so that everyone could benefit.

You know that The Patriot Express Loan Pilot is an effort to stimulare the economy but that there are many vehicles for fraud on The SBA Franchise Registry and veterans will be logs on the fire when they purchase high-risk and unviable franchisees with high risk of failure in the first three years or more. The pilot, however, will be over in June of 2009 and will have been successful for the franchisors, the banks, and the government. But, will the success or failure for the Vets who become franchisees be reported to the public. Will they hide the body bags?

on September 4th, 2007

Congress passes legislation that helps Special Interests

It is, of course, a given that Congress often passes legislation that appears to be for the "public good" that is really a subsidy of the private interests who lobby for the lesgistlation for the public good.

I think the Patriot Express Loans are fine if the veterans and their families are fully informed of the true risks of their investments in franchising. This, however, is not the case, and I imagine the Congress, the Small Business Committees of the Congress and the Senate know that the failure rate of first-generation franchisees are hidden in Item 20 of the UFOC.

If they don't, maybe the FTC ought to run over there and tell them.

on July 2nd, 2007

SBA Patriot Express Pilot Loan Program -- Vets Beware

In the meantime, for two years this progam will be offered to Vets and FranData will not furnish the true failure rate of the franchised business plan that is hidden in Item 20 of the UFOC.
It is hidden from government as well as the public so that government has deniability.

But, in the meantime, will many of our veterans and their families be put at risk because they will not know the true risk of the investment because the failure rate of the business plan can be hidden in the UFOC's?


on July 2nd, 2007

Veterans Symposium -----SBA Patriot Loan Express

If Chad is a great and caring guy and veterans are going to be targets of franchisors because of the quick and easy SBA Patriot Express Loan Initiative, is this great and caring guy going to suck veterans into long-term and maliciuous contracts of adhesion in which the veteram franchisees or their families will have low odds of survival? Will the Veterans be provided FranData snapshots in the sales process?

Do franchisors justify the low survival rate of first-generation franchisees in these long-term indenturing contracts as the law of the jungle. Does anyone, anywhere, know the survival rate of first-generation franchisees of Service Brands International or the Dwyer Group? Will Service Brands International get out there and tell veteran prospects how successful this franchise is for first-generation franchisees before these veterans are tricked into signing malicious and indenturing contracts that can destroy their lives?

The writing is on the wall when the committee in Congress is named the US Senate Committee on Small Business and Entrepreneurship. The government is gathering logs to feed the fires of development in the economy and veterans will stand in the front lines. I wouldn't mind if the SBA would guarantee these loans with NO Collateral and no personal guarantees, but the banks wouldn't agree to this, would they?

The malice in the chalice of the franchise industry cannot be hidden forever. There is always a price to be paid.

on November 15th, 2007


Please help warn Veterans, Reservists, National Guard members and their spouses (all elibile) about this new PATRIOT EXPRESS LOAN offered by the SBA in cooperation with Vet/Fran and the SBA Registry/Fran Data.

Unless Fran Data is putting out data about the failure rate of first-generation franchisees hidden in the UFOC's in Item 20 transfer columns, you know that many who will get these loans will make really BAD investments.


on July 2nd, 2007

Walk the Walk

I would love to picket for free outside of the Expo but will have to wait until a show comes to my town (unlikely) because I can't afford to fly out to the West Coast.

It really bothers me that veterans and their families are the targets of franchisors because of the Patriot Express Loan Initiative and I wish there was some effective and efficient way to warn veterans not to be lulled into a false sense of security from the appearance of government endorsement of franchisors with UFOC's and listings on the SBA Franchise Registry, as well as discounts offered under the Fran-Vet initiative. and the special SBA Loan Initiative that is said to be for the purpose of honoring the service of the veteran.

Why shouldn't private parties be able to sell "due diligence" packages at EXPO's or would this make many of the franchisors uncomfortable whose sales force may not even know that they may be selling franchise products with a very high degree of risk of failure to hopeful entrepreneurs who NEED income to support their families.

I am not against franchising if the true and real risk of the investment is disclosed to the new prospect. If the franchisee knows and truly understands the risk involved in the purchase of the franchise and opts to invest knowing the risk involved, as demonstrated by the ZOR-known success or failure of others who have invested in the franchise, this is fair play. The status quo of the process of the sale of franchises and federal government regulation and the State UFOC's does not result in fair play for franchisees.

This is not discretionary money that franchisees can afford to lose. This is the nest egg that prospective franchisees are willing to invest to provide for their futures and to sustain their American Dream.

on October 18th, 2007


The government is neither helping nor hurting. No matter what government program is adopted in any context whatsoever,  it is capable of being abused. People have to protect themselves from abuse. The government can't clean up New Orleans or make Bagdad safe, and they can't even put out competent hurricane preparedness information. When you consider the low quality of what this (or any) government provides by way of "smart" programs, if you don't in that context appreciate that only you can help you, then it is a toss up whether you are better off investing in a franchise or just drinking yourself to death at Muldoons.

Get good help that understands how to vet information concealment. For example, Item 20 is not a big deal to sort out, no matter what they do to the information. If the information is even in there in the first place, how it is arranged is not a difficulty for competent and aggressive due diligence. But if you don't know how to do competent and aggressive due diligence, guess what's gonna happen to your investment. 


Posted by RichardSolomon on July 3rd, 2007

Patriot Express ----Helping Vets and Helping the Economy!

There is no doubt that this new program that could possibly help Vets returning from Iraq and retiring military and National Guard and Reserve and their spouses will be a boon to the franchisors and the banks. The 75 to 80 percent guaranty of the loans by the SBA will mean that the banks and the lenders won't lose and there will be more venture capital for the franchisors to tap into. The economy will need stimulating since the sub-prime mortgage racket has been shut down and the housing market is no longer the bright star of the economy. Elections are coming up in 2008.

We sure don't want our Vets hanging out on the streets like they were after the war in Vietnam and it is good of government to want to keep this from happening and to give this target group a chance at the American Dream ----owning a business of their own. When the pilot is over, maybe the vets and their families can march to Washington to thank the Government.

Good jobs are scarce in this economy unless you work for government or the health care industry/health insurance, etc...or are among the 25% of Americans, and shrinking, who are employed by American Corporations. It is really wonderful and democratic that the Armed Services are allowing amputees to continue to stay in the services to continue their careers if they can pass muster. I know that Congress will provide the VA with the ability to take care of our returning troops, although, in the past, after the war is over, this seems to be an item that is open to cuts in appropriations when Congress is cutting its budget.

If, however, the American Dream enabled by The Patriot Express turns out to be another American Nightmare for many of these troops returning from Iraq and for the retired military, etc... this pilot program, I assume, will be discontinued. The name itself is almost hoky and I wonder if a committee voted on the name. (I would like to see Richard Solomon work on this at Muldoon's)

In the interests of making The Patriot Express a success for the troops, i.e. Vets and their spouses, it might be a good thing if the SBA and the FTC got together and figured out how to reveal the failure rate of the franchised business plan for first-generation franchisees to protect new "patriot express" buyers of the franchises on the SBA Registry from making high risk investments in which they risk losing their houses and savings that were taken as collateral for these SBA loans.

We know, of course, that this pilot is going to be successful for the franchisors and the banks even if the pilot fails and many of the franchisees fail.

Again, to ensure durability of the franchising business model, only the first-generation franchisees will lose in failure and the franchisors and the banks will remain fat and happy.

Maybe, the government, in reporting the sucess or failure of the Patriot Express Program, won't count the franchisee failures because they won't be disclosed under the State UFOC's through the transfer columns. But, of course, the SBA Default Rate on the Loans would be available under the FOIA to citizens, or here on Blue Mau Mau who acquires them from the SBA. Again, the true failure rate for first-generation franchise investors would be obscured and the government might call the program a success based on target research that counted first-generation failed franchisees as successes for the franchisor's network.

on July 3rd, 2007


If the government knows that four out of five small businesses fail within the first five years, apparently, they are willing to sacrifice the VETS to these statistics.

Isn't this disgusting?

on August 28th, 2007

Dwyer-Owens and Patriot Express Loan Initiative

Congratulations to Dwyer-Owens. I know she is proud to be offering these franchises to Veterans because Dwyer-Owens franchises are safe investments for Veterans and their families.

I am, however, unable to look at any of the UFOC's. Am I looking in the wrong place? I want to help those veterans who are returning to a bad job market and who will be looking for a way to make a living.

I know that the late Mr. Dwyer was responsible for starting Fran-Vet discounts and was proud to have helped veterans and it is good of the new Chairwoman to continue his legacy.

Can anyone help me to access these UFOC's?

on February 14th, 2008

Pilot Programs of SBA to Stimulate the Economy

This pilot program THE PATRIOT EXPRESS LOAN is no doubt an effort to stimulate the economy as well as to honor and help VETs and families returning from IRAQ and retired military, etc. etc...

It will be wonderful if it is highly successful for this our troops and their families. We know it will be successful from the standpoint of the franchisors and the banks and the lenders and those who make their living in and around franchising. They really can't lose because of the SBA guarantees and the collateral that will be provided by the Patriot Loan borrowers.

What will be the definition of success or failure for the Pilot program? Has the SBA released this to the public?

It worries me that the program could look successful while hiding the failure rate of first-generation franchisee veterans and spouses in the transfer columns of the UFOC. That is to say, the program could be highly successful for the franchisors and minimally successful for the franchisees, and highly harmful to those veterans/spouses who could lose everything in their quest to be Entrepreneurs and be hidden away in the transfer columns of the UFOC's when they are forced to distress fire-sale their assets to third parties for almost nothing. .

on July 4th, 2007

Thank you! I'm proud of you --YOU ARE A GOOD LAMB

Thank you for telling me this. I think that I should get off of Blue Mau Mau and start writing to some of the Veteran Groups and Military Associations, etc... about THE PATRIOT EXPRESS LOAN initiative and the vehicles for fraud, etc.. that are listed on the SBA Franchise Registry.

I haven't done this because we are a part of a law suit and the attorneys tell you not to go on Internet Sites and post, etc.. and I didn't want our attorneys to find out that I was doing this against their instruction.

But, I will now start to do this and to write to my elected Senators and Representatives as well. We do have to join together to protect the people's faith in the rule of law and I do agree that our legal system is out of control and has been purchased to some extent by the special interests who buy legislation and law from the Congress. It is so hard to tell the good guys from the bad guys and we are lost if we aren't sending the good guys and the good gals to the Congress and the Senate of the United States.

on July 5th, 2007

Dwyer Group Offers Vet-Fran Discounts

All of the Dwyer Group Holding Company's Brands offer discounts to VETS and actively solicit VETS on the Internet through GI Jobs, etc... as well.

What is the turnover-failure rate of these Brands. Are they a good deal or are they churners that live on the flesh of first-generation franchisees?

Fair question? How about a fair answer?

on September 4th, 2007

Where is your poof that Dwyer Group is hurting Zees and Vets?

It is not okay to make baseless accusations. You need proof Mr./Mrs. Item 20 Poster.

Once again I will ask simple questions of you. Where does your franchising experience come from and were you a failed franchisee or not. What are your qualifications for opining so vigorously against franchising?

The truth shall set you free from your shackles of self-deception!


Posted by Truth in Franchising on September 4th, 2007

Have you no shame Item 20 Ranter?

You indict franchisor's business models and then ask if anyone knows the survival rate of first generation franchisees. It's about time you researched franchises before you insult, maiign and attack them.

You are a deplorable human being and you should crawl back into the hole you came out of. 

The Truth Shall Set You Free!


Posted by Truth in Franchising on November 15th, 2007

Last Warning Item 20 Poster

We Value All Perspectives, But Each In Their Appropriate Venue

The posting above has been moved from a news story to the regulation forum area. You have been asked many times to post these long-standing discussions on government regulation in the forums that focus on regulations. You have ignored such pleadings on almost a daily basis.

Our readers have been patient. Others have not been so patient and have left because of the constant bantering on the same topic. We developed software that allowed the moderator the ability to transfer comments to more appropriate venues partly because of your postings.

See our posting guidelines

I think it is safe to say that we have been very patient with you this past year.  Frankly, we need a more robust forum discussion area and your help would be greatly appreciated. It had been hoped that you could build the specific topic in the forum area with postings as well as by inviting friends. After all, government regulation is a topic of interest and relevency to franchisees.

So it is with great reluctance that I state that if you make one more government regulation, Item 20, SBA Patriot Loan Express, etc. post outside of the government regulation forum, you will be considered a malicious poster and banned from the site.

I write this with heavy heart. I write so publicly because I have no way of emailing you privately.

Mr. Blue MauMauModerator

on November 15th, 2007

This is item 20 Fun!

Well well.... Time to blast a First Energy middle managemant guy who you never met?

Chad Heyman has nothing to do with you losing money in a franchise investment. There are always 2 sides to a story, and quite frankly, your side has gotton old.

Service Brands International owes you nothing, either. But in your mind, somebody does.

Whatever you are trying to change about the business of franchising, I hope you are able to. It might not happen in this forum, though.


Posted by franpro on November 15th, 2007

Don't become a Z-Rube

There is nothing wrong with SBA guaranteed loan programs.

However you do need to select the right franchise concept/investment so you do not become a Z-Rube. If you get one lesson from Blue Maumau it should be that tuning into a Z-Rube is a horrible fate/affliction. You can avoid becoming a Z-Rube by innoculating yourself through a full regimen of effective due diligence.

An effective due diligence presciption is widely available and all you have to do is take a dose three times daily or as needed while investigating franchise concepts.

on July 2nd, 2007

Z-Rube Definition Revisited

Z-Rube Defintion - a franchisee failure that blames everyone but themselves for their choice of franchise concept and subsequent business failure. A franchisee failure that has an off the charts level of self-denial that manifests itself thruogh a jihad like mission to obfuscate the need for due diligence by prospective franchisees and encourage paternalistic governmental intrusion into the lives of all Americans.

You can identify a Z-Rube by its slouching demeanor, sunken eyes and grouchy disposition. You will hear the Z-Rube repeat incessantly phrases like "why can't the government regulate franchising at least as well as securities are regulated by the SEC?" If reproached a Z-Rube will likely resort to ad hominem attacks, but you should not be afraid for the Z-Rube has much bark but alas no bite.

Care and feeding of a Z-Rube; you should humor a Z-Rube to a point, but you should always try to inject reality into the unreal world of the Z-Rube in order to coax the Z-Rube out its state of utter denial and into the world of personal responsibility. The truth will ultimately set the Z-Rube free.

on July 3rd, 2007


You who drum up business on this site know that there will be many vehicles for fraud on the SBA Registry of Franchises but you do nothing to make Fran/Data disclose the real failure rate of these franchises to the public. You will not chastise the FTC and the Congress for making this particularly vulnerable pool of naive fools available to the franchisors and the banks while hiding the true failure rate of the franchises from them -- and singing God Bless America and polishing lapel flag pins at final signing.

You know that many of these targets will believe that this is the nation's way of honoring their service and will be lulled into a sense of security with the discount on the franchise and the "special" government loan. They won't have azny idea that they will perhaps lose everything when they sign that contract of adhesion and buy into all of that shit about the American Dream of owning a business of your own.

Veterans, afterall, are used to a little trauma in their lives and their families can take it. What does it matter if they sacrifice a little more for "good business" and if they are so dumb as to trust government. Let them learn the hard way that they have to take care of themselves and that the most important value they defended out in the world is the "value of money" and the right of others to take it from you anyway they can.

You don't complain to the FTC----You protect the ugly public policy. You protect your own positions and you throw those millions, who don't know about your killer due diligenc, into the clutches of those who will steal their lives and their money and never look back. They will be "sonatized" and "rose-hosed" and "Amosed" and "Mathised" and "Shaw-beaned" and lose everything. It is true for franchisors that "sticks and stones may break their bones but names will never hurt them" and this is just more red herring to divert attention from the real evils of the public policy that provides this venture capital to keep the fires of development burning brightly.

You, Richard and Dale, are guilty in your silence and your speech because you know the truth and you hide your light and your knowledge from view to protect an ugly status quo.

You forgot to do your due diligence on your characters and may some day drown in your own guile and dishonesty. One never knows! Maybe there will be a Z Day.

on July 3rd, 2007

One Franchise Picture for All

"This is not discretionary money that franchisees can afford to lose. This is the nest egg that prospective franchisees are willing to invest to provide for their futures and to sustain their American Dream." - Guest

Your statements are way too wide and sweeping. You have one frame and one view that you paint of all franchisees. 


on October 18th, 2007

How to Hide the Risk -----Cooperation and PR IFA and FTC

It is not a new scheme to hide risk with busy statistics that are imprecise and that can be interpreted as one chooses and with help from those who push the ZOR's and help them to hide the failure rate of first-generation franchisees in the transfer columns of the UFOC's.
Prospects are really taken in because they don't expect their government to be so dishonest as to devise an Item 20 to deceive them.
I guess that even Michael Seid who is a big "man" in the world of franchising didn't know that the real failure rate of first-generation franchisees is hidden in the UFOC's when he wrote about deciphering the Item 20 Charts in the UFOC and didn't intend to mislead when he said in Make Sense of the UFOC in, August 26th, 2002: I quote in part:

"Seems like important information, because in one chart you should be able to see how well the system is growing from year to year. You can see why some units have changed hands or closed. And you can see that information on a state-to-state basis. Right! Not really.
A location can be listed in more than one category;therefore, the columns don't add up, which in itself is confusing and misleading. A location might be listed as a transfer simply because the franchisees gave the business to their children. It might be listed as a transfer because they made so much money, they sold the business and retired to Florida. Or they could have sold the franchise because they lost every dime. That same unit may have been purchased by the company and then resold to a new franchisee that year......"
Michael Seid tells no untruths in this article on Item 20 and I'm sure he would have clarified the above comments if he actually knew that transfers almost always reflect failures and third-party ZOR abbeted fire-distress sales in which the ZOR gets a general release and a confidentiality agreement when the ZEE gives the unit away.
It must be that his friends at the IFA just didn't talk to him about this common practice of hiding the failure rate of first-generation franchisees in the transfer columns of the UFOC's.
It is because transfers "can" reflect these other reasons for the sale-transfer of the franchise that government has deniability and can say that they have no way of knowing when franchisors are churning and turning and pumping and dumping.

on July 3rd, 2007

You Dodge the Issue of Obscuring the Risk

I'm sure you rationalize your position but just how many people do you think read Blue Mau Mau or know about your killer due diligence.

And, if the government is going to take our taxes and send our children off to wars to protect capitalism and democracy, and freedom, in that order, they at least owe a warning to those poor suckers who didn't do their due diligencve when they volunteered to join the National Guard and the Reserve and the regular services to protect a government who is only in business for special interests.

I think your position is wrong and selfish and self-serving, Richard!

on July 3rd, 2007

Z-Rube still stuck on JD's question...

I guess I was right about you!

on July 3rd, 2007

Vets deserve a shot at business ownership!

Do you want to deprive Vets of their opportunity for successful business ownership?

on August 28th, 2007

Protecting Our Heroes from Risk

If 4 out of 5 small businesses fail, the risk is obviously too great for our heroes. I say we discourage Vets from the indignities and risk of a small business.

Being a postal worker is better.


on August 28th, 2007

Z-Rube can we limit competition for the Vets?

Could we make impossible for Vets to fail? Make VET franchises "bullet proof"! Why don't we promote a program that gives a protected radius or market to Vets where no other competing business could sell in their protected market? You could administer this program through your division of the SBA and use the local SBA Franchise Loan Approval Boards as special arbitration and enforcement tribunals. Z-Rube this is your opportunity to build a governmental bureaucracy. You'd get your own endless role of red tape!

on July 4th, 2007

Dishonest Question to provide smelly red herring


l. The failure rate of first-generation franchisees in networks who are selling proven business plans is a material fact that should be disclosed to investors under the law.

2. This known fact is not required by government to be disclosed in UFOC's. Item 20 obscures the failure rate in the UFOC's of the franchised business plans from BOTH the government and the prospective new buyers of the franchises.

3. Neither the government, nor the prospective buyers, know to any degree of certainty what the transfer columns in Item 20 are indicating and the failure of first-generation franchisees is not disclosed anywhere in the UFOC's.

4. Because government doesn't actually know that Item 20 is hiding failed first-generation franchisees who transfer their units in distress fire-sales for almost nothing, they don't have to do anything about churning that permits franchisors to sell unviable and flawed products to the public and perpetuate their networks on the backs of failed first-generation franchisees.

5. Neither the Rule or the UFOC's require franchisors to disclose "material" facts to the prospective franchisees. The Rule "purpose" indicated: "The Rule is designed to enable potential franchisees to protect themselves before investing by providing them with information essential to an assessment of the potential risks and benefits, to meaningful comparisons with other investments, and to further investigation of the franchise opportunity."

^. It is my belief that The Rule Purpose has not been accomplished and that the UFOC's are a lie of ommission that has become public policy supported by the government and the business community. Material facts concerning the true and actual risk of the investment in the franchise are not provided. Item 20 is a weak attempt by government to provide "essential information" to prospective franchisees that in practice allows franchise networks to hide the true and real failure rate of their business plans and their first-generation franchisees and to churn an appearance of viability based on the visibility of the franchisor in American communities.

7. It appears obvious that franchised business opportunities are not regulated as well as securities because this is a subsidy of public policy that favors the franchisors that government considers as necessary for the "public good."

8. This subsidy needs to be looked at and the democratic principles that people have died to protect need to be applied to the franchisor-franchisee relationship. Franchisees are denied the equal protection of our laws under present law and practice. The known risk of a franchised business opportunity as represented by the failure of first-generation franchisees is a material fact that should be disclosed under law.

Posted by Guest on July 4th, 2007

One day you too will see the light O'Item 20 Poster

Now what was your background I am confused. You were a Vet that bought a franchise that failed and you didn't get your discount? Is that a good guess, guest? Did you get churned?

Posted by Truth in Franchising on September 4th, 2007

Who said Dwyer Group is hurting ZEES and VETS?

TIF ---While I understand that your thinking processes are guided by your Pro-ZOR can do no wrong mentality, who said the Dwyer Group is hurting ZEES and VETS.

I said they were actively recruiting and targeting VETS through their Website and I wanted to find out if they were "churners" or viable franchises that might survive the term of the very tough contracts. I would be happy to learn that they sell excellent franchises with very low failure rates of first-generation franchisees.

Perhaps, you know this and would like to confirm it to those who read Blue Mau Mau, and maybe they would buy this franchise from you.

on September 4th, 2007

Violation of Posting Guidelines

You allow the advertising of the Veteran's Symposium in the Article Comments on your site that is for the purpose of providing franchise prospects and publicity for franchisors and advisors and brokers but you won't allow me to warn and you leave this "Veterans Symposium" in the Article Comments.

Obviously, we are coming from different places! I will try to respect your posting guidelines that are meant, of course, to support advertising discourse/revenue for franchising on your site. I do appreciate that you did give me a forum but I don't think you, Don, appreciate that in the garment of franchising, the threads are, in the long run, all connected to the malice of the franchising model as supported by the ugly status quo of franchising that exists today in our country.

I am just a few chapters into "Beguiling Heresy" and I understand that I have been "right on" about Item 20 and the Deal and the MALICE of an industry who sells long-term contracts (which are legal traps that are upheld by our courts) to unsuspecting middle-class Americans who make the mistake of trusting their government. The purpose of the Rule, as stated by the FTC, has been aborted, and the FTC has lied to the American public.

I don't so much blame the franchisors who do what they are enabled by government to do, as I do the Congress and the Executive Branch who use the law and process to serve the powerful and rich corporations who buy legislation from thw whore house that is known as The Congress of The United States.

on November 15th, 2007

The joyful road to truth in Franchising from Franpro

Excuse me, Joel, for borrowing "the joyful road" hype on your Blog. Of course, there are always two sides to a story and my side may be old but it is the truth and it is the truth that you are tired of.

It may be that you who sell and hype franchising for your living protect your innocence by remaining ignorant of the actual failure and success rate of the franchises you sell to the public. If I did this for a living, I'm sure I would try to protect my innocence as well. I would rationalize that those to whom I sold who were successful were the proof of the pudding and I would try to forget about those who weren't.

I wasn't attacking Chad Heyman and I notice that you guys don't get out here and push specific franchises for their high success rate that is demonstrated by real statistics, but, instead, you just concentrate on the joys of the right franchise for the right person.

This is not a personal attack, Joel! If you conceive it as such, just remember that you started it with your personal attack on me. I am not attacking you, personally. I am attacking the government regulators and the predator franchisors who will sell high risk franchisees to my brothers and sisters, my fellow veterans of the Armed Services.

on November 15th, 2007

Z-Rube unintentional service

Pizzaguy, I could not agree more with your observation.

Additonally, Z-Rube provides a terrific service that he is to oblivious to realize. When people read his riduculous rants and unintelligible logic (that would be illogic for public school educated folks) they may be inclined to actually be personally responsible for their due diligence and not want to become a Z-Rube!

Z-Rube Defintion - a franchisee failure that blames everyone but themselves for their choice of franchise concept and subsequent business failure. A franchisee failure that has an off the charts level of self-denial that manifests itself thruogh a jihad like mission to obfuscate the need for due diligence by prospective franchisees and encourage paternalistic governmental intrusion into the lives of all Americans.

on July 2nd, 2007


No one has ever accused me of being shy/hiding my light under a bushel.

My light shines radiantly when I am retained. If I did everything without charge, I would be in the same situation as you. Now wouldn't that be a stupid thing to do? 


Posted by RichardSolomon on July 3rd, 2007

world is not flat.

I do not run - I do not hide - I simply do not agree with your view points, therefore there is no need to continue the banter back and forth.

I do not need or desire to have 'Big Brother' protect me.  It is bad for business, mine - yours - or anyone elses.  It raises cost, reduces profit and distracts from building and growing the business.  I prefer that govenment manage the country and let me manage my business.

Success as a franchisee is simple.  Select the right franchisor - with the right concept, that's right for you.  Allow for More-Than-Enough time and capital.  Develop a winning game plan.  Commit to success regardless of the contribution made by your franchisor - because your success depends on it.  Manage YOUR BUSINESS & The Franchise efficiently & effectively at all times!  The government can do none of the above for me or you.

So please - do what you think is right!  I will continue to do what I think is right - which quite simply is to help franchisees to succeed in franchising.  I shall continue to do this regardless of your efforts or the results of your efforts.  I can not and do not support your efforts, but support your right to pursue them.  I just hope and pray that wisdom prevails.

Should you decide to accept personal responsibility for your success and choose to focus on sustained profitability feel free to give me a call, at 1-800-975-7312 ext. 701.  Until then there's little for me to say to you or about your efforts.  I've concluded that I can not convince you that the world is not flat.

Believe & Succeed,DaleFranSynergy, Inc.Synergizing Franchising!

Posted by FranSynergy on July 3rd, 2007

What's the problem?

If, as you say, that "transfers almost always reflect failures and third-party ZOR abbeted fire-distress sales," why not just approach that column with that mindset? 

Or is it you just like quoting Michael Seid over and over again - as an aside, your reference to him as a "big man" is intriguing.  What information are you privvy to?  I think it is fairly obvious you are really in a conspiracy with Michael Seid to circulate to the franchising world how big Michael Seid is.  Why don't you disclose your secret meetings with Michael Seid to push his bigness upon the world?  Aren't your posts just part of the Michael Seid/anonymous guest industrial complex?  Isnt' your concern about Item 20 merely a pretext for introducing Michael Seid's bigness?  Discerning minds want to know...

Posted by Bubba Sparky on July 3rd, 2007

Z-Rube are military folk somehow less intelligent than you?

Or us regular old pedestrians? Do they need more protection than the rest of us? I don't think the Vets would appreciate your condescending rhetoric it insults them.

on July 3rd, 2007

Time Element of Pilot Patriot Express Loan is Suspicious

This Pilot Program will be assessed to see if it should be continued, and the government knows that small businesses fail within the first five years, etc...

Under the present UFOC's, the failed VETS will be hidden in the Transfer Columns and the statistics produced by government will be inaccurate and could indicate that the program was successful (because government doesn't know what the Item 20 transfer columns are indicating in terms of success or failure of the first-generation franchisees).

The point is that the Pilot Program will stimulate the economy regardless of the outcome for the VETS who may deserve a shot at business ownership but who DESERVE to be informed of the true KNOWN statistical risk of the investment before they put their houses up as collateral.

With the falling real estate market and falling resale prices, etc.. it seems to me that the banks will have to look at these UFOC's and decipher the Item 20 columns to protect their stockholders. Who knows how far home prices will fall.

Oh! "what a tangled web we weave when first we practice to deceive."

on August 28th, 2007

What are your solutions?

Your opinions are suspect, however let's set your opinions aside and give us your solitutions starting with Item 20. It's put up or shut up time Z-Rube!

on July 4th, 2007

Here is your invective Dwyer post quote...are you for real?

Guest rant:

"How disgusting that the little low-paid and expendable franchise investor on the bottom of the heap supports these business empires with cheap capital and cheap labor, and under the status quo and the law is just an expendable log in the fire of development and speculation in our greedy capitalistic not-so-democratic Republic."

I guess you don't realise that your prior posts are still in this forum for all to read. You cannot pretend they are not there.

I again ask what is your franchise experience that qualfies you to condemn franchising and were you or were you not a failed UPS Store franchisee?


Posted by Truth in Franchising on September 5th, 2007

Question for Franpro

I may be mistaken, but based I what I saw on their website, the Veteran's Symposium is for all veterans that own a business and not just for franchisees/franchisors?  If that's the case, then I don't see how the ranter gets to his side tangent that Mr. Heyman is out to take advantage of prospective franchisee with this symposium.  It seems he's out to help veteran business owners whether they are independent or part of a franchise group.

on November 15th, 2007

Ranter Quote

Ranter states:

'I notice that you guys don't get out here and push specific franchises for their high success rate that is demonstrated by real statistics, but, instead, you just concentrate on the joys of the right franchise for the right person. '

Maybe people don't get out here and suggest specific franchises because each person is different.  You failed at The UPS Store, but who is to say that you wouldn't have succeeded elsewhere.  How many differenct franchise concepts did you look at, or were you stuck on UPS Store?  I think we saw that for Richard & Deborah, they were convinced a coffee store was right for them, but since Caribou and Starbucks didn't franchise they had to settle on Coffee Beanery, which was the wrong choice for them and many others.  How many other coffee franchises did they look at?  Did they look at a Panera type franchise too? 

Each prospective franchisee has a lot of questions to ask themselves.  Whether they want to be in the store or absentee?  How much money do they think they need to make?  What type of net worth they need to have?

If you've noticed, when people come on here or any other franchise forum and ask the question 'What do you think of X (franchise)?', people here will give them their opinion, and might ask questions to that prospective person that they hadn't thought of.   

Ranter, hopefully you realize that there is not a single franchise out there that every person would be successful at.

on November 15th, 2007

Ranter. Dude.


I was not attacking you, personally. If I was, I would not hide behind long paragraphs... I would just say it! Personality flaw? No idea. That is how I operate.

I promote franchising as a viable option for some. Everyone is not a fit for franchising.

That is why the longer I do this, the less people I am willing to meet face to face with, to try to help them with the American Dream. Yes. The American Dream!

I also meet with less and less people becuase I am based in Cleveland, Ohio. Cleveland has had it's share of issues. Mainly, people moving away! If I was based in a growing area like Denver,or San Diego, or Atlanta, I am sure I would meet and help more  people get into franchising, if they are a fit and if they want to. I do not sell. I guide and encourage. In hindsight, maybe you should have met with a qualified and ethical consultant/broker. You may have either not invested in a postal/shipping type opportunity, or even invested in a franchise of any type. Who knows?

Back to a "personal attack." If you noticed, the last statement I made was:

"Whatever you are trying to change about the business of franchising, I hope you are able to.'

I meant it. I am pro-franchising. But only to a point.... 



Posted by franpro on November 15th, 2007

What Information Franchisees Want

Guest writes: "You allow the advertising of the Veteran's Symposium in the Article Comments.. but you won't allow me to warn and you leave this "Veterans Symposium" in the Article Comments"

Many might argue that the site has been much more accomodating to your advertising of the need for government regulation than any article about a franchisor or vendor.

This site is a place to inform franchise investors, not a place to solely advertise the need for Item 20 reform.

If any one company came in every day to write "our company offers something even better..., or this company is trash...", to every article, our readers would be up in arms. That company would be stopped within a few postings.

Guest writes, "appreciate that in the garment of franchising, the threads are, in the long run, all connected to the malice of the franchising model"

This site is not such a one-sided publication. It could be argued that in the garment of this site, all threads are connected to the topic of blogging and so we should write on blogging on every news article. But that would take away from our mission:

"to unleash social media tools to inform franchise investors"

Investing in a franchise and a business is a creative process. It's not just about understanding the pitfalls. Frankly, the need for more or less government regulation is but one small thought among many of the pressing, every day concerns that franchisees have as they buy and operate their stores.

The need for government regulation is but one hobby horse (long-standing hobby horses are welcome, but in their appropriate place - the forums.) What is needed on the site is balance. You cannot have one topic everywhere.  We can have it in a given forum though. Lots of postings and thought on a given subject.

Mr. Blue MauMau

on November 15th, 2007

Practice safe franchising...don't become a Z-rube

Read all of Z-Rubes post there a true pearls of wisdom in those rants.

on July 2nd, 2007

What you talking about Columbus?

This talk of yours heretical! It means I am responsible for my own actions and investments? Say it isn't so! Dale you are putting way too much pressure and responsibility on me. I want the protectors in Washington, DC to handle all my decisions for me.

on July 3rd, 2007

Michael Seid ?

I knew Michael in his S&L days. Where do you get he is a big man. Sucking up to the IFA is just a carry over from his S&L days

on July 3rd, 2007