CHILDREN’S ORCHARD: May 2010 Press Release

Children’s resale franchise Children’s Orchard is distributing the following press release. 

Reactions and comments regarding the release are invited here:

CHILDREN’S ORCHARD: CEO Taylor Bond Claims Franchisees Giving “Rave Reviews”

Read more about the (previously?) troubled franchise chain here:

CHILDREN’S ORCHARD: Overview & Links

“Nation’s First Children’s Resale Franchise Reveals Business Model for Future

“May 10, 2010 // Franchising.com // Ann Arbor, MI – The Children’s Orchard "store of the future" and refined franchise model has arrived, racking up increased sales and high marks from its core customer base of spending-conscious, Internet-savvy moms and their kids.

“As it celebrates its 30th anniversary, the children’s upscale-resale concept isn’t standing still. Larger stores, a reconfigured layout, and an emphasis on convenience and shopability are just part of Children’s Orchard’s commitment to meeting the needs of moms and their kids. On the heels of introducing no-appointment-needed Walk-In Buying (with the industry’s only 20 minute guarantee) and seasonal Tent Sales, in March 2010 Children’s Orchard rolled out its online store at www.childorchstore.com. The addition of these new elements to its business model, first tested at the company’s flagship location in Ann Arbor, Michigan, have helped to increase store inventories, boosted customer traffic and satisfaction, and resulted in an overall increase in store sales.

"’At 30 years of age, we are still the trailblazers of the upscale resale franchise concept,’ said Children’s Orchard CEO Taylor Bond. ‘We were the first franchise to offer quality, higher-end, gently-used clothing and other items for children, and we continue to lead the way. We’ve rolled out online programs that meet the needs of today’s techno moms, we’ve enhanced the process by which we buy clothes from customers, and we’ve improved efficiency of back-end operations. Customers and franchise owners alike are giving us rave reviews.’"

“As part of the evolution to a more sophisticated business model, Children’s Orchard has elevated the capital criteria for new franchise owners. ’We’ve raised the required net worth to reflect a new mindset: it’s not just about operating a store, but about building a business,’ Bond added.

“To meet the needs of today’s busy mom, Children’s Orchard’s new online store gives moms access to a variety of brand-new products, ranging from eco-friendly handbags to kids toys to software that helps parents monitor their children’s Internet usage. Unlike any other children’s resale store, each Children’s Orchard store’s website offers its customers the chance to preview items that have just arrived at their nearest location. They’re called ‘Just In! Listings’ and customers love them. The franchise has also secured marketing partnerships with such well-known ebrands as Net Nanny® and JumpStart®. In addition, Children’s Orchard has launched a Social Media campaign on Facebook, engaging its customers through a series of contests and giveaways, and also launched a recipe exchange website designed for today’s busy moms.

"’Over the last 30 years, we’ve grown a loyal, nationwide following of Children’s Orchard brand advocates. Most of our franchise owners came from this pool of devoted customers,’ Bond said. ‘And as Children’s Orchard® brings resale shopping into the next century, we’re attracting a greater number of business owners who see us not just for the quality products and services we provide, but for the sophisticated business model we offer.’

“About Children’s Orchard®
“Founded in 1980, Children’s Orchard is the nation’s first franchise of gently used and new name-brand children’s items. With over 50 franchise locations, each Children’s Orchard store buys and sells quality used and new brand name clothing, toys and accessories in an upscale retail environment. Children’s Orchard stores are designed to emphasize quality, value, comfort and commitment to the local community.

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

CHILDREN’S ORCHARD: CEO Taylor Bond Claims Franchisees Giving “Rave Reviews”

Children’s Orchard CEO Taylor Bond claims, in a recent press release, that as it celebrates its 30th anniversary, his troubled company continues to be the leader and trailblazer of the “upscale resale franchise concept.”

He claims that his recent operational and franchise innovations “have helped to increase store inventories, boosted customer traffic and satisfaction, and resulted in an overall increase in store sales.”

Bond also claims the changes are attracting savvy prospective franchise owners: “we’re attracting a greater number of business owners who see us…for the sophisticated business model we offer.”

Taylor Bond states:  “Customers and franchise owners alike are giving us rave reviews.”

Are Children’s Orchard Franchise Owners Giving “Rave Reviews”?

If these claims are true, Children’s Orchard CEO Taylor Bond is engineering a turnaround that’s nothing short of amazing.

Just last year, disgruntled Children’s Orchard franchise owners launched the OrchardCooperative.org website to protest Taylor Bond’s management and franchise policies and practices. According to the site,

“Many franchisees—after years in the business—have yet to make a profit, and many are being forced to close shop. Under Mr. Bond’s leadership, the number of stores has declined steadily from 86 in 2004, to 77 in 2007, to 71 in 2008, and to 61 in 2009. A handful of others are expected to close their doors this year.”

Currently, the number of stores listed on the Children’s Orchard site is just 51, down from nearly one hundred at one time.  While Children’s Orchard stores have been closing, competitors seem to be thriving with similar concepts.

The statements and Taylor Bond quotes come from a 30th Anniversary press release (“Nation’s First Children’s Resale Franchise Reveals Business Model for Future”) issued by the company and posted on Franchising.com, Ann Arbor Biz and a handful of franchise blogs.  Here are excerpts from the press release outlining the improvements claimed by Children’s Orchard:

Children’s Orchard Operational Improvements

“Larger stores, a reconfigured layout, and an emphasis on convenience and shopability…”

“…no-appointment-needed Walk-In Buying (with the industry’s only 20 minute guarantee) and seasonal Tent Sales”

“…we’ve enhanced the process by which we buy clothes from customers, and we’ve improved efficiency of back-end operations. Customers and franchise owners alike are giving us rave reviews.”

“The addition of these new elements to its business model, first tested at the company’s flagship location in Ann Arbor, Michigan, have helped to increase store inventories, boosted customer traffic and satisfaction, and resulted in an overall increase in store sales”

Children’s Orchard Online Store

“in March 2010 Children’s Orchard rolled out its online store at www.childorchstore.com”

“Children’s Orchard’s new online store gives moms access to a variety of brand-new products, ranging from eco-friendly handbags to kids toys to software that helps parents monitor their children’s Internet usage.

“Unlike any other children’s resale store, each Children’s Orchard store’s website offers its customers the chance to preview items that have just arrived at their nearest location. They’re called “Just In! Listings” and customers love them.”

“The franchise has also secured marketing partnerships with such well-known ebrands as Net Nanny® and JumpStart®.

“In addition, Children’s Orchard has launched a Social Media campaign on Facebook, engaging its customers through a series of contests and giveaways, and also launched a recipe exchange website designed for today’s busy moms.

Children’s Orchard New Franchise Requirements

“As part of the evolution to a more sophisticated business model, Children’s Orchard has elevated the capital criteria for new franchise owners. ‘We’ve raised the required net worth to reflect a new mindset: it’s not just about operating a store, but about building a business,’ Bond added.”

“’Over the last 30 years, we’ve grown a loyal, nationwide following of Children’s Orchard brand advocates. Most of our franchise owners came from this pool of devoted customers,’ Bond said. ‘And as Children’s Orchard® brings resale shopping into the next century, we’re attracting a greater number of business owners who see us not just for the quality products and services we provide, but for the sophisticated business model we offer.’”

ARE YOU FAMILIAR WITH THE CHILDREN’S ORCHARD FRANCHISE?  WHAT DO YOU THINK?  ARE STORE SALES RISING? HAS TAYLOR BOND TURNED THINGS AROUND?  SHARE A COMMENT BELOW.

COLLEGE PRO PAINTERS: Great Opportunity or Franchise Scam?

The College Pro Painters franchise opportunity seems like a brilliant idea:  a program that gives college students and recent graduates the training, systems, branding and guidance they need to build their own successful, profitable seasonal house painting businesses. 

The idea seems to be a win-win for everyone:  Homeowners get a quality, reliable paint job at a reasonable price and students not only earn good money, but gain invaluable business, management and entrepreneurial skills and experience.

According to the College Pro Painters franchise website directed at prospective franchisees:

… no other experience can provide you with the exceptional leadership and management training that helps you stand out now and in life after college. College Pro is the largest and most successful student painting company in North America because it provides a challenging, real-life business experience that inspires excellence. You‘re already working on your education in school, but this summer learn the tools you will need in order to make and manage money, run your own business and gain the self-confidence you will need for any future career…

Each summer we select over 700 driven, enthusiastic young entrepreneurs across North America to run their own business from more than 25,000 who apply. These students employ another 7,000 additional workers. All of them represent a brand recognized throughout North America, so we are particular about who enters the system – and supportive of those we choose. Find out what franchise managers say about how a summer job with College Pro can help you to meet tons of new people, make money to help pay your tuition, and learn new skills that can be applied to your future employment endeavors.

However, there are numerous comments on Internet complaint sites that tell a different story.  On the Pissed Consumer website, a parent whose daughter was in the College Pro Painter franchise program calls it a cultish Ponzi scheme:

…College Pro was cult-ish and is run like a Pyramid Scheme.Think about it. The kids are working their butts off bringing in the CASH while a bunch of slackers at the top are raking in the money. "Bonding Sessions" are common-place. Financially, they took over 30% of the profits. That’s over $25,000 from my kid for her working 4 months.

They charge the Franchisees for EVERYTHING at top prices. They even charge the kids $15.00 for a College Pro T-shirt !!! YOU PAY FOR EVERYTHING! Shame on them. They disgust me. I will NEVER use College Pro. They are NOT good leaders or role models for our youth! It’s a greedy company breeding greed and teaching kids to cheat, not trust their loved ones and to lie about the painting skills they have ( 1 day of training).

If your kid wants to do College Pro, stand by them and know that they will work their butts off. There are a very few that make big bucks, but they are really rare. Help them create books, balances their checkbooks – your kids will need you more than ever. Don’t abandon them. They will not be able to do well unless they get REAL help from those that really care about their personal growth and work ethic.

John Doe writes:

Scammers. I was a franchise manager and I was robbed of all my money. I booked 72k and was on my way to my goal of 80k and my GM told me I was only going to recieve something less then 10k. I was pissed so you mean I worked 12-20 hrs a day and take home less then 10k. Bull ***! I just kept thinking they make 70k and I only make 10k. So I quit and sold my book work to other franchise managers so they can make their goals. I was just lucky not to have to pay anything more back to them for quiting like I read other managers have done. I really didnt have anything to owe them besides not fulfilling my goal. Anyways spread the word to kids that CPP *** and is a scam. Dont do it no matter what they say positive about their company

former CPP franchisee writes:

College pro painters is the worst student scam that is legal… the company lies, misleads, threatens, blackmails and on top of that they steal. True facts: if you sell anything under 75K your going to make nothing. There is NO guarantee of making any money! Example on a 50K business you will make 3000$ for working 70h a week for 6 months (1,78$ per hour). Total SCAM!

It isn’t really 24% royalty its more like 35% with all the hidden cost you pay on each job you book. Think about it 35% CPP charges 35% labour 15% supplies if your lucky you be left with maybe 15% to pay for your car, marketing, equipment. Don’t forget the 6000$ charge for what they call recoverables.

In total on a 50K biz they take 25K. They will take everything you have! If your thinking of becoming a franchisee it will be a mistake of a life time. You have greater chances of making money by starting your own company and make 45-50% of the sale and not 10-15% like with college pro!

ARE YOU FAMILIAR WITH THE COLLEGE PRO PAINTERS FRANCHISE OPPORTUNITY?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

LIBERTY TAX FRANCHISE: Praise from 1st Year Owner

The Liberty Tax franchise opportunity has both its supporters and its detractors, neither of which are shy with their opinions. 

As of this writing, two UnhappyFranchisee.com posts have 60+ comments on Liberty Tax and founder John Hewitt:

LIBERTY TAX SERVICE Franchise Complaints

Are LIBERTY TAX SERVICE Franchise Owners Happy?

We received a recent comment from a “Mario” who claims to be a first-year Liberty Tax franchise owner.  Mario states that he converted his existing business to Liberty Tax and his numbers shot up 40% this year after converting our business to Liberty.  According to Mario, “We are first hand proof that the system works.”

Here is Mario’s posted comment.  What do you think?  Share a comment below.

2010/05/11 at 5:12pm Mario wrote:

“The problem may lie in the people making these postings. I am a first year franchisee of Liberty. We converted our existing tax practice into a Liberty Tax and are very satisfied with their support and service. Owning a business is not for everyone. As an owner of up to 5 business at any given time, I have to work harder than most people who have jobs. I don’t complain about that, I am happy to work harder because my family and I are the ultimate beneficiaries of the hard work and long hours. People who have jobs and work for others mostly work harder for the benefit of their employers with no real job stability or appreciation. If you like working 9-5, owning a business or a franchise is not for you. If you don’t want to risk the money you are investing, owning a business or a franchise is not for you. Keep it in a savings account earning 1/2 a percent per year interest. There are no free rides. If it were easy, everyone would be doing it. Liberty provides an excellent system and backend that if executed properly, works. There are over 2000 franchisees in the Liberty system. Most are very happy and profitable. Obviously the ones that are unhappy and/or didn’t preform well in their endeavor have posted here. Is the system perfect? Absolutely not. Is it much better than opening up a business on your own (as I have done many times both successfully and unsuccessfully)? It absolutely is.

“John Hewitt successfully founded and ran Jackson Hewitt which was sold for hundreds of millions of dollars. Liberty Tax is the fastest growing tax franchise ever. He has over 40 years experience in the tax industry. With that comes some people who weren’t a good fit for franchising, or for the tax industry or for owning a business in general. You have seen their postings above. Take them with a grain of salt. If you are interested in franchising with Liberty Tax, inquire with Liberty and you will get a chance to talk with John Hewitt himself. Opportunities like that are rare. He is a hands on CEO with a wealth of information and knowledge that he isn’t afraid to share (to his franchisees). If you have questions about the postings above, feel free to present them to John directly and he will give you the other side of the story which is not represented here.

“Goto Jackson Hewitt’s website and goto their investor relations section and listen to their conference calls and look at their financials. Better yet, search them on Google News and you will see that they are on the verge of failing. Then do the same on Liberty’s website. You can see the financials posted (even though they are not a public company, they still release their financial performance). You can listen into John Hewitt’s investor conference calls. He has a wealth of information about the tax industry as well as competitors H&R Block and Jackson Hewitt. During recent years, Liberty has increased market share each year while it other two national competitors (H&R and Jackson Hewitt) have lost market share and their client base. Don’t let a couple of disgruntled franchisees sway your decision before getting all of the facts so you can make an informed educated decision about joining a great company like Liberty Tax Service.

“Our numbers were up 40% this year after converting our business to Liberty. We are first hand proof that the system works.”

More posts and discussions on the Liberty Tax franchise:

LIBERTY TAX SERVICE Franchise Success Story

LIBERTY TAX: Should Franchisees Call Customers Crackheads?

LIBERTY TAX SERVICE: Unhappy Franchisees Need a Reality Check

Are you familiar with the Liberty Tax franchise or other tax franchise opportunities?  What do you think?  Share a comment below.

PRO GOLF OF AMERICA Franchise Ends in Chapter 11 Asset Auction

Pro Golf of America CEO/President Frank Hutton recently posted this notice on LinkedIn:

“Franchise Chapter 11 Asset Auction – Bankruptcy Court Sale
”In re: Golf Acquisitions LLC dba/ Pro Golf LLC Case No. 09-66452 United States Bankruptcy Court Eastern District Southern Division of MI. There will be an auction for the sale of all fixed and revenue producing assets of this national franchiser of retail golf stores. Auction will be on June 4, 2010 @ 9:30 AM at office of Charles J. Taunt & Associates, PLLC. Specific court approved bid procedures must be met for participation in auction.
”Interested parties should contact Frank Hutton, CEO/President @ fhutton@progolfamerica.com or 1-800-776-4653 for an Executive Summary, NDA in order to undertake the due diligence, and bid procedures.”

Frank Hutton has been CEO/President at Pro Golf of America since January, 2008 His LinkedIn profile reads Recruited to turnaround or release underperforming franchisees, and sell additional franchises under a new retail business model. Seeking new opportunity due to lack of new capital for repositioning and expansion. Currently negotiating with 24 domestic franchisee candidates, and brand licensing in 7 countries on 3 continents.

Just three years prior to Hutton being recruited to turn around the ailing franchise, Pro Golf of America press releases, like this one, were boasting record growth:

Record franchise growth at Pro Golf

FARMINGTON HILLS, Mich. – Jan. 17, 2005 – Pro Golf of America, Inc. (Ajay Sports, Inc.) (Pink Sheets:AJAY) (Pink Sheets:AJAYP), has announced record franchise growth with the addition of 20 new stores opened for business during the 2004 golf season with an additional eight new stores to open in early 2005. These 28 new franchise locations are widely distributed with 27 sites throughout the United States plus 1 international location in Ireland.

Brian Donnelly, President & COO of Pro Golf commented: "Pro Golf has secured a strong network of new franchisees which greatly complements the existing base. We see significant opportunities for continued growth worldwide. Since 1962, serious golfers have learned to depend on Pro Golf for the best quality products, value and knowledgeable service in the golf industry. As the premier golf franchisor in the world, Pro Golf franchisees are recognized throughout the golf industry as highly successful, customer-focused retailers with a passion for the game of golf."

About Pro Golf:
Headquartered in Farmington Hills-Michigan, Pro Golf has 123 franchised locations, growing throughout the United States, Canada and Ireland. Visit www.progolf.com to find a nearby Pro Golf store to visit; in addition, you will discover a top-rated internet shopping experience offering a broad array of golf equipment, clothing and sporting goods.

The Pro Golf website, which went off-line in 2008, stated: “With over 40 years of experience, Pro Golf is the oldest, as well as the largest golf retailer in the world….Pro Golf has been named the #1 Franchisor in the Golf Stores category by Entrepreneur magazine 13 times in the last 16 years. We have also been named the Top Golf Retailer by Franchise Times Magazine for the past 12 years.”

However, in 2008 warnings began to appear on RipoffReport.com and other Internet sites disputing the Pro Golf of America corporate hype.  In February, 2008 one commenter posted:  “In the year 2004 Pro Golf opened 20 new stores. Only 4 of those stores are still in business today. Many former Pro Golf owners are now personally bankrupt.”

ARE YOU FAMILIAR WITH PRO GOLF OF AMERICA?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

MAKE & TAKE GOURMET: Defendant Attorneys Off The Hook

Make & Take Gourmet was not one of the largest of the ill-fated Meal Prep (Meal Assembly Kitchen) franchise fiascos, but it continues to be one of the most notable. 

It seemed pretty clear from public news stories on Make & Take that the founders sold unregistered franchises in violation of franchise laws, that they freely touted prohibited earnings claims and, when the concept didn’t work, the company founder Michele Bellso blamed the franchisees for their failures.

Our stories on Make & Take Gourmet are cautionary tales for both franchisees and young franchisors:

Make & Take Gourmet, Michele Bellso Accused of Franchise Fraud (AG)

MAKE & TAKE GOURMET: 3 Franchisee Groups Reportedly Suing

MAKE & TAKE GOURMET: Franchisees Sue Meal Prep Franchisor

Meal Prep Franchisor Blames Franchisees…

In a recent lawsuit, Make & Take Gourmet franchisees were unsuccessful in including the Bellso’s attorneys in their lawsuit… probably bad news when it comes to actually collecting any judgements.  Here’s the ruling upholding the dismissal of Bond, Schoeneck & King, PLLC from the suit:

TYSZKA v. MAKE & TAKE HOLDING, LLC

2010 NY Slip Op 03680

SHAWN TYSZKA, LISA TYSZKA, LAT HOLDING, INC., TYSZKA, LLC, CHERYL GRENGA, EUGENE GRENGA, GINNYJO, LLC, BRIAN CLARK, LISA CLARK, MAKE & TAKE GOURMET — CLIFTON PARK, LLC, FORMERLY KNOWN AS FRESH COAT PAINTING, LLC, PLAINTIFFS-APPELLANTS,
v.
MAKE AND TAKE HOLDING, LLC, ET AL., DEFENDANTS, AND BOND, SCHOENECK & KING, PLLC, DEFENDANT-RESPONDENT.

CA 09-01876.

Appellate Division of the Supreme Court of New York, Fourth Department.

Decided April 30, 2010.

EINBINDER & DUNN, LLP, NEW YORK CITY (MICHAEL EINBINDER OF COUNSEL), FOR PLAINTIFFS-APPELLANTS.

BOND, SCHOENECK & KING, PLLC, SYRACUSE (JONATHAN B. FELLOWS OF COUNSEL), FOR DEFENDANT-RESPONDENT.

PRESENT: CENTRA, J.P., PERADOTTO, LINDLEY, SCONIERS, AND GORSKI, JJ.

It is hereby ORDERED that the order so appealed from is unanimously affirmed with costs.

Memorandum: Plaintiffs entered into agreements with defendant Make and Take Holding, LLC (Make and Take) to operate franchises, and they commenced this action seeking damages based on alleged violations of the Franchise Sales Act ([Act] General Business Law § 680 et seq.) after the franchises were closed. Supreme Court properly granted the motion of Bond, Schoeneck & King, PLLC (defendant), a law firm, to dismiss the complaint against it for failure to state a cause of action. The first cause of action alleged, inter alia, that defendant willfully and materially aided Make and Take in selling the franchises and thus was liable pursuant to General Business Law § 691. Pursuant to section 691 (1), a person who offers or sells a franchise in violation of specified sections of General Business Law article 33 “is liable to the person purchasing the franchise for damages . . . .”Section 691 (3) provides in relevant part that “[a]n employee of a person so liable[], who materially aids in the act o[r] transaction constituting the violation[] is also liable jointly and severally with and to the same extent as the . . . employer.” We reject plaintiffs’ contention that defendant is an employee of Make and Take. Section 691 (3) does not define employee, and we thus interpret that term using its common law definition (see generally Nationwide Mut. Ins. Co. v Darden, 503 US 318, 322-323). Under the common law, “the relationship created between an attorney and his [or her] client is that of principal and agent” (Burger v Brookhaven Med. Arts Bldg., 131 AD2d 622, 624). Defendant was thus either an agent of Make and Take or an independent contractor, and was not its employee (see Bynog v Cipriani Group, 1 NY3d 193, 196, rearg denied 2 NY3d 794).

The second cause of action, which was asserted only against defendant, alleged that it aided and abetted the violation of the Act in derogation of the common law. Section 691 (5) provides that, “[e]xcept as explicitly provided in this article, civil liability in favor of any private party shall not arise against a person by implication from or as a result of the violation of a provision of this article or a rule, regulation or order hereunder. Nothing in this article shall limit a liability which may exist by virtue of any other statute or under common law if this article were not in effect.” We agree with the determination of the court in its written decision that “[t]he final sentence of the provision preserves [preexisting] common law claims which would exist under the common law if the Act were not in effect, [but that], here, the only violation alleged as against [defendant] is aiding and abetting a violation of the Act itself, not a free-standing common law violation. For claims arising out of statutory violations of the Act, the Act itself provides the plaintiffs with their exclusive remedy.”

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