CURVES: Should Failed Franchises be Resold?

The Curves franchise on Thorold Stone Road, Niagra Falls reportedly closed overnight.

According to the Niagra Falls Review, members reportedly “worked out the day before and no one said anything and then came in the next morning and it was all dark and empty.” 

The sign on the door read: "Attention Curves members. Sorry closed for business. Thank you for your past support."

Members complained that they had just paid for the month and were given no notice whatsoever.  However, members are free to continue their memberships at other area Curves clubs.

CI’s main concern:  Finding a new owner

The Niagra Falls Review interviewed Becky Frusher, head of corporate communications at the Curves International Inc. head office in Texas:

She said the company will try to find a new owner for the women-only club so members are not disrupted.

"We regret to see any club close," she said. "Our main concern is getting the club back up and running, so that members can continue to enjoy the health benefits of our workout."

Shouldn’t Curves’ main concern be determining the reason for the failure?

While it may seem to members that their Curves franchise club closed overnight, it’s unlikely that it did.

After all, a franchise owner had a significant investment sunk into that club.  The odds are that they have tens of thousands of dollars in outstanding liabilities… money owed to CI, to their landlord, and to other creditors.  Isn’t it more likely that the club closed after a long and protracted effort to keep the club profitable and open?

The more than 500 comments posted here by struggling Curves franchise owners support that conclusion.

Shouldn’t Curves International’s priority be to determine whether the Niagra market could not support that club, rather than to put another owner in the same situation?

And if they find a new owner who reopens the club… will the surrounding clubs then lose the members they took in from the closed club?

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

LITTLE SUNSHINE’S PLAYHOUSE: Stormclouds, Franchise Lawsuits

Little Sunshine’s Playhouse & Preschool franchise website welcomes visitors with a fairy tale:

“Once upon a time there was a happy place where children played in a kingdom of creative encouragement.  Where Little Sunshine, Riley B and all their friends across the land grew by leaps and bounds in their magical home away from home.”

However, the Little Sunshine’s Playhouse fairy tale franchise has turned into a nightmare for both the fledgling franchisor and its early franchisees.  The franchisor alleges two of her first franchisees refused to pay royalties and renamed their day care centers, but continue to use her trade dress.  She is suing them for trademark infringement.

The franchisees accuse the Little Sunshine’s Playhouse franchisor of not providing agreed services and abandoning them by moving to Hawaii.

Little Sunshine’s Enterprises Inc. complaint against its franchisees

In “Little Sunshine’s franchisees split off” the Missouri’s Springfield Business Journal reports:

Springfield daycare franchisor Little Sunshine’s Enterprises Inc. has filed federal trademark-infringement lawsuits against two former franchisees, and the defendants have responded with counterclaims.

Two suits in U.S. District Court for the Western District of Missouri name Springfield entities Paschke Enterprises LLC and Brodersen Wyrsch LLC as defendants, and seek a combined $200,000 for alleged trademark infringement by the franchisees, which have since dropped the Little Sunshine’s name by court order.

“They initiated a cooperative royalty strike,” said Little Sunshine’s Enterprises owner Rochette Dahler, claiming the franchisees in August stopped paying her company’s 6 percent royalty fee, which amounted to $2,500 to $4,500 per month.

Paschke Enterprises operates Storybook Children’s Academy in south Springfield, and Brodersen Wyrsch operates Pinnacle Children’s Academy in Rogers, Ark.

Rochette Dahler personally operates two Little Sunshine’s Playhouse centers and franchisee Joyce Harrington runs the third location. Dahler founded the concept in 2002 and began selling franchises in 2005.

Franchisees’ complaints against Little Sunshine’s Enterprises Inc. & Rochette Dahler

The counterclaim filed by Paschke Enterprises makes several claims against Dahler:

That “…Dahler was not available to assist with the operation of the facilities, that she moved to Hawaii and was not available to provide support, and that she made false representations regarding Paschke Enterprises’ Cardinal Street location.”

That Dahler “misrepresented the number of children that would be enrolled in both locations as 80, when in fact the maximum licensed capacity was 72.”
That Dahler “misrepresented income generated from certain government programs, including subsidies for low-income families, food reimbursements and grants, which were all unavailable at the Cardinal location.”

That Little Sunshine’s Enterprises “failed to live up to the franchise agreement terms by failing to send an experienced school administrator to the Cardinal location for a week before and two weeks after it opened; failing to assist with grant writing; and failing to make Little Sunshine’s corporate staff accessible.”

According to the Springfield Business Journal article, the counterclaim alleges that the Cardinal location “has never made profit and has experienced substantial losses since beginning operation.”

Ain’t no sunshine when she’s gone…

Franchisee Paschke claims to have invested $435,000 in the once-franchised daycare location and has eight years remaining on a $10,500 monthly lease.  However, her ex-franchisor and bitter courtroom enemy Dahler said she has signed a contract to purchase the land and building occupied by Paschke Enterprise’s day care from the landlord Tillman.

Hell hath no fury like a preschool teacher – or franchisor – scorned.

ARE YOU FAMILIAR WITH THE LITTLE SUNSHINE’S PLAYHOUSE & PRESCHOOL FRANCHISE?  SHARE A COMMENT BELOW!

PLAY N TRADE: Recruits Multi-Unit Video Game Franchise Owners

There have been many contentions online that the franchise graveyard contains the dreams – and financial wellbeing, savings, credit scores, etc. – of many a failed Play N Trade franchise owner.  For that reason, many might find the name of the Play N Trade franchise contact (Miles Coffin) ironic, if not appropos.

When writer Sean Kelly posted the question IS PLAY N TRADE A GREAT FRANCHISE OPPORTUNITY? on the blog formerly known as FranchisePick, the 130 responses were predominantly negative.  More than 300 comments, mostly negative, have been posted on this site.  Allegations of fraud, franchise disclosure violations and a hopelessly flawed business model have been posted on numerous sites, especially when the California Department of Corporations suspended Play N Trade’s registration in its state ( see PLAY N TRADE Franchise Registration Revoked)

However, in 2010 Play N Trade has mounted an aggressive franchise PR push, with numerous press releases citing increased same-store sales growth and claims that Play N Trade is “one of the fastest-growing franchises worldwide across all industries.”

Here’s the press release issued by Mr. Coffin today:

“Play N Trade to Attend and Sponsor 2010 Multi-Unit Franchising Conference

“San Clemente, CA, March 23, 2010 –(PR.com)– Play N Trade Franchise, INC, the fastest growing video game franchise worldwide, is excited to announce that not only will it be attending the 2010 Multi-Unit Franchising Conference but will also be a sponsor for the event.
From March 24th-26th, one of the only conferences in the nation focused exclusively on multi-unit franchising will be held at the Mandalay Bay Hotel in Las Vegas, NV.

“On Thursday, March 25th Play N Trade President and CEO, Larry Plotnick and Vice President of Franchise Development, Charles Franklin will be in attendance to discuss owning a Play N Trade franchise and the resources Play N Trade provides every franchisee to succeed.

“’Play N Trade defines all that is exciting and revolutionary in today’s gaming culture and is the only company operating in this space that has successfully positioned itself as ‘the Ultimate Gaming Store’,’ says Franklin. ‘The store design, wide selection of new and used games, accessories and consoles, in-store tournaments and ‘Try-Before-You-Buy’ policy create a community atmosphere that makes Play N Trade the preferred destination for gamer participation, discussion and competition.”’Play N Trade Area Developer and Franchisee, Ken Leese will also be on hand as a panelist to discuss his former success as a massive multi-unit operator with Jackson Hewitt and his current successes with and the future potential of Play N Trade. Mr. Leese will be presenting primarily on the evaluation and selection of new brands for portfolio expansion.

“Prospective franchisees who are serious about growth and interested in new concepts, opportunities and unique service solutions can find Play N Trade at booth #5 to learn what makes it such an exciting franchise opportunity.

“About Play N Trade
”Play N Trade is the largest and fastest-growing video game franchise worldwide. It is also one of the fastest-growing franchises worldwide across all industries. The company provides exceptional training, support and marketing systems to its store owners, who in turn provide an outstanding customer experience for their shoppers. Play N Trade customers can try any video game before they buy”

“Play N Trade Franchise, Inc.  Miles Coffin  888.PNT.GAME Miles.Coffin@playntrade.com playntradevideogamefranchise.com

Also read:

PLAY N TRADE: Video Game Franchise Played Out?

PLAY N TRADE: MI Bankruptcy Auction

PLAY N TRADE Forum Gets Spammed N Slammed
PLAY N TRADE’s Franchise Registration Suspended (Michael Webster’s blog)

PLAY N TRADE: Execs Respond to Blog Critics

WHAT DO YOU THINK?  IS PLAY N TRADE A GREAT FRANCHISE OPPORTUNITY?  WHY OR WHY NOT?

Facebook Horror Stories: Sub Franchise Employees Hating On Customers

Are your franchise employees sabotaging your brand on Facebook? by Sean Kelly

Caution:  This post contains some pretty offensive material.

There’s a popular sandwich delivery franchise that spends millions each year trying to build a fun, friendly, customer-centric brand.  Unfortunately, this particular sub franchise chain and its franchise owners don’t monitor Facebook.  If they did, they’d see that some of their employees (even store managers) have been busy sabotaging their brand by communicating how stupid they think their customers are and how much they hate them.

In some cases, the employees publicly wish physical harm upon the patrons who pay their paychecks.

Have you had problems with employees or co-workers making damaging comments on Facebook?  How did you handle it?  Please share a comment below.

“[Company Name]’s customers are sometimes (usually) the dumbest people everrrrrr.”

The comments below are from an actual 87-entry discussion thread titled “[Company Name]’s customers are sometimes (usually) the dumbest people everrrrrr.”  The photos are from the same public forum.

A warning:  some of these comments are vulgar and pretty offensive (even with my asterisking).  Then again, that’s the point.

The employee photos are posted to the general group, but those in the photos are not necessarily the commenters.

Using his real name, one employee writes on the publicly viewable forum:

i hate when they watch you make the sandwich and when your done wrappiing it and you hand it to them they say i didnt want mayo or no tomato. its like f*ck you *sshole you just watched me make it.

i had one lady call me on the phone and be like how do i know what the sandwichs are? and i was like… are you serious open the f*cken wrapper and LOOK!!! or know what your ordering f*cking dumb*ss.

Another store employees writes:

since our store is right next to a panda express, we get the people that come in look around and just walk out… HOW THE HELL DOES THAT HAPPEN!?!?! not only is there a huge f*cking neon sign on the goddamn window…. but everywhere you f*cking look there is [company name]!! we wear [company name]!!  shirt. YOU STUPID C*CK JUGGLING THUNDERC*NTS!!!! that goes to every customer thats ever been an idiot *sshole.

A store manager writes:

I had this one stupid b*tch come in one time ask for a sub with only cheese and lettuce on it. So i think to myself at first “what a f*cking waste of money”. So I ask her again” So all you what on it is just cheese and lettuce”. She says “yes”. So I make it. Then after she sits down and opens it, she comes back up and tells me that it is not what she order. She was wondering where all the meat was. Stupid f*cking bitch if you want f*cking meat then dont tell me you just want a sub with cheese and lettuce! F*CK!

One girl writes:

its not so much that people are dumb….. they are just complete imbeciles …..

We wish our customers would die!

A store manager in the Midwest writes:

F*CKING BASTARDS. I don’t think i have ever gone a whole day without dealing with at least a handfull of customers i wanted to stab in throat just for being a retard

A young girl employee wishes death by allergy on a customer:

He makes snide comments to his lady friend (who will definitely get aids from this frat f*ck), and then watches me wrap the sandwich.
boy: “Oh..Can you take those toms off?”
myself: “What?”
Boy: “Yeah, I’m allergic to them..”
“really? how tragic.”
“yeah, i’d have to go to the hospital.”
“and what a loss.. you think you’d remember you’re allergic to something before you HAVE IT ORDERED, but you know..”
and then they left. guess who kind of lost it? he should die.

people are just f*cking morons that eat at [Company Name].

A young male employee fantasizes a bit more violently:

Hi, can i have a slim one with lettuce?
Mam, we arn’t allowed to put anything on the slims but the meet and or cheese.
Lady: Ohh oky, i gotcha! Can i have tomatoes?
Me: Ma’am, we Can’t put that on there either..
Lady: Ohh, okay i understand..why don’t you put them on the “side” for me (winks)
Me: Takes out a shotgun and fucking kills her.

Forget the fact the company’s claim-to-fame is free fast delivery

Comments from delivery drivers and store employees include:

ITS 20 F*CKIN MINUTES! Christ, i have other deliveries. I get there as fast as i can. Do people that say that think i stop and f*ck around on the way there? If you want it faster, pick it the f*ck up, b*tch.

*ss hole makes me follow him out the building, all the way around to his car, and only gives me 9 bucks (tips me 1 f*cking dollar)

What I love is how many times you have to tell the idiots that we don’t have a computer to track addresses, so you need to give me your address every time.  The trick is for us to be smarter than the idiots that order from us.

i Hate the people who call in 1 or 2 sandwich orders for pickup. come on. it seriously takes 1 minute to make a sandwich. can’t you just f*cking come in?

Alienating customers by groups

…does anyone have a dillard’s by their store? we have one down the street and the employees come for their lunch hour every day and EVERY. SINGLE. ONE. is a b*tch.

The people who work at gene Juarez are the stupidest dumb c*nts you’ll ever have to deal with. unfortunately that’s on a daily basis also.

there is a 24-hour fitness ACROSS the street.  They order sandwiches to be delivered every F*CKING day.  they can’t walk across the street?

OK, the last one was funny, but still…

“wtf is this, subway? i think not.”

The sub franchise employees are outraged by customers making special requests.  A female team member writes:

i hate it when people ask for sh*t on their subs like pickles and swiss cheese and then they want ranch instead of mayo….

wtf is this, subway? i think not.

Another girl agrees:

i guess every [company name]’s customer is dyslexic …we had this one guy (maybe it was a woman, i can’t remember) who was begging for us to put tomato and lettuce on his slim. he was like “i’ll pay more for it, just put it on there” and i was like retard!!!!! if you want to pay more, GET THE FRIGGIN SUB! it’s like a dollar more, and already comes with all that sh*t…

“f*ck you fat lady”

A store delivery driver writes:

this huge lady pulls up and runs inside the store screaming “wheres your bathroom?!?!?!”, so we point her in the right direction…

we go knock on the door and she says “occupied” and comes out shortly after. she sneaks out the back door and leaves….

it took us 45 minutes to clean her sh*t up

wherever you are, f*ck you fat lady

Can you flash for food if you’re NOT ooglay?

A female store employee writes:

I had a girl come in and get pissy when I didn’t let her show tits-4-subs (she was ooglay) and so she was a drunken whore…
Crazy c*nt.

From the discussion “Favorite Firing Stories”

A female crew member recounts:

we had a driver spit in this b*tches food (she was rude to us, a b*tch and NEVER tipped once!) and told her “heres your sandwich b*tch i hope you choke on it.” squeezed when he handed it to her and walked out. she called back later cuz she ate half of it and then found a big wad of spit. needless to say he was fired but it was awsome. he was a good worker too it sucked.

Another female employee of a franchisee writes:

A few months ago, an amazing driver and a shitty *ssmanager were fired for smoking weed behind the store. Oh man. I joke about that to my manager all the time.

A male employee writes:

we had a driver get fired for droppin a baggy of coke on the floor right in front of our manager and then saying its not what it looks like, its some crushed up vicodin that im sellin to a buddy. Our manager checked the bathroom and found white residue on the sinks. awesome employee and a cool kid but seriously dont bring that sh*t to work.

If they forget the chips with your order, you might want to let it go.  A store employee in MI writes:

a guy got fired from our store [store location] for saying “F*ck you! im gonna haunt you for the rest of your life b*tch!” to a woman he was delivering to because she told him that he forgot the chips….she called our store afterward and told our manager what had happened, so she brough it up to the driver and he said, “f*ck this sh*t!” and left…haha what a crazy *ss night that was

Lawsuits waiting to happen

Facebook has got to be Disneyland for litigation attorneys putting together sexual harrassment, discrimination and related cases.

One employee writes of his co-worker “she is the only idiot working for us, nobody likes her and she is a gross bisexual”

Employees discuss perceived sexual advances by a female franchise owner toward a young male employee:

Male employee #1: she [franchise owner] was working and said she wants to go shopping with me for clothes sometime…shes taking interest in what i wear….i think she has a thing in me.  she is a total babe….not a fat slob…like u would THINK would own a fast food chain…not at all.  shes so classy
Male employee #2: Hit that shit!
Male employee #1: work in progress

Female employee: for sure! DO HER! thats like ultimante bragging rights (especially if shes older)

Welcome to the Age of Facebook

Every restaurant, foodservice or retail employee is going to vent about their customers sooner or later.  The problem is that now the venting isn’t going on in the backroom, it’s happening on Facebook for all – customers, prospective franchisees, lawyers, etc. – to see.  There’s the potential not only to damage the business and the brand, but the employment prospects of the employees who don’t realize they are revealing more about themselves than their customers.

This chain’s employees’ attitudes may or may not be worse than its competitors.  But here’s the most shocking thing to me:  this discussion and most of these comments have been publicly displayed on Facebook for three years. Has no franchise owner or home office employee searched the company name on Facebook in the past three years?

The lesson: If you own a business and you’re not familiar with Facebook, you better ask your kids for a quick lesson and start monitoring what’s being said about you and your business today… before real damage (or more damage) is done.

ARE YOU FAMILIAR WITH THIS – OR ANOTHER – FACEBOOK HORROR STORY?  SHARE A COMMENT BELOW.

WIRELESS TOYZ Fraud Case: Franchise Company, Simtob Must Pay; Barbat Cleared

One of several franchisee lawsuits charging Wireless Toyz, and executives Richard Simtob, Joe Barbat, and Jack Barbat with fraud has ended with mixed results.

According to Crain’s Detroit:  “An Oakland County jury awarded $180,600 damages last week against Wireless Toyz and another $20,000 against Richard Simtob, its finance director and vice president of franchise development, in favor of Colorado franchisee David Abbo of Colorado Toyz Inc.

“Jurors awarded no damages against founder and President Joe Barbat, his company JSB Enterprizes Inc. or against co-founder and Vice President Jack Barbat.”

The single count awarded is for silent fraud. The other allegations of pure fraud, negligent misrepresentation and the franchise law violations were dismissed or resulted in no damage awards from the jury.

The plaintiffs in the case were represented by Birmingham-based Norman Yatooma & Associates P.C.  They were seeking $7.2 million in damages.

According to ClickOn Detroit:

Attorney Norman Yatooma also represents Abbo and other investors, who claim they were defrauded out of their investments by Barbat and the company.

"They didn’t much care what the franchisees were ultimately going to earn. What they cared about was getting their $100,000, their $150,000, their $200,000 down payment to open up that store or to reserve that territory. After that, what happened to the franchisee was their problem," Yatooma said.

He said the investors were lied to when they were told they would make huge profits with their franchises.

"[Joe Barbat’s] made obscene millions off this Wireless Toyz scandal. He’s made millions upon millions upon millions," Yatooma said.

ARE YOU FAMILIAR WITH JOE BARBAT, RICHARD SIMTOB & THE WIRELESS TOYZ FRANCHISE?  WAS THE JURY VERDICT FAIR?  SHARE A COMMENT BELOW.

RENT-A-CENTER to Pay $340K for Customer Harrassment

Rent-A-Center, the parent of rental franchise chain ColorTyme, has reached a settlement with the Washington Attorney General’s Office over claims that it harrassed and directed profanity against customers.

The the Plano, Texas based company (NASDAQ: RCII) has vehemently denied the charges but agreed to pay Washington more than $340,000 in legal fees and costs to monitor the decision, according to Attorney General Rob McKenna.

According to an article in the Puget Sound Business Journal:

“In July, the state alleged that company employees tried to kick in the door of one customer who said he’d be late with his payments because of his wife’s hospitalization. In another case, the state alleged that a woman said Rent-A-Center employees refused to leave her home after she stopped making payments, telling her that she’d be jailed for theft, scaring her daughter, and passing information to her neighbors that she wrote bad checks.

“As part of the settlement, Rent-A-Center agreed not to: speak to customers more than six times a week to discuss an overdue account; engage in violence; trespass; call or visit bankrupt customers unless authorized; impersonate other people; discuss customer accounts with other people; threaten legal action unless permitted under law; visit a customer’s workplace after being told not to visit; use profanity; attempt harassment; or ask someone other than a customer to make a customer’s payment. There were also other restrictions.”

According to the article, Rent-A-Center officials are “delighted to have the case” behind them because, in the words of their spokesman, “It’s less costly to settle than to litigate.”

HAVE YOU HAD ANY DEALINGS WITH RENT-A-CENTER OR ITS FRANCHISE ENTITY COLORTYME?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.