QUIZNOS Franchise Owners Form Franchisee Association

Quiznos franchise owners are forming a new franchisee association.

We wish them the best of luck.  With widespread unit closures and one of the worst franchisors of any major franchise chain (one that also seems to be on the brink of a financial meltdown), they are going to need all the luck they can get.

Here’s the recent press release announcing the formation of the Quiznos Franchisee Association (QZFA):

Quiznos Franchise Owners Announce Formation of Association

CHESTERFIELD, Mo. (Aug. 25, 2011) – In an effort to unite Quiznos Restaurant franchise owners, we are pleased to formally announce the formation of the Quiznos Franchisee Association (QZFA). QZFA will provide Quiznos franchise owners a platform to advocate for improved profitability, transparency and stronger franchisor-franchisee relationships in order to enrich the value of the Quiznos brand.

“This is a pivotal time for Quiznos franchise owners; we now have an opportunity to unite on common issues and protect our investments for the future of our businesses,” explained Michael Slater, vice president of the Quiznos Franchisee Association.

QZFA is committed to providing a united voice for franchisees and needs members who are ready and willing to make positive contribution to the future of the brand. Quiznos franchise owners are eligible for QZFA membership.

“Membership in QZFA is essential for Quiznos franchise owners who desire to be profitable and have a voice in how their business is operating,” said Steve Bawden, executive director of Quiznos Franchisee Association.

The mission of QZFA is to build and promote an environment, which fosters productive collaboration to enhance the long-term value of the Quiznos brand, while growing franchisee revenue and profitability.

“By joining QZFA, we will be united for the first time in the history of Quiznos. We will have one voice and can make a difference in saving our investments and our future,” said Andre Bonyadian, franchise owner, Los Angeles, Calif.

QZFA board members are committed to uniting Quiznos franchise owners in order to achieve the mission of the association and ensure a sustainable future. The board members and leadership is:

· Kevin Tackett, President

· Michael Slater, Vice President

· Keith Rentschler, Secretary and Treasurer

· Robert Caldwell, Director

· Andre Bonyadian, Director

· Randy Hart, Director

· Tushar Patel, Director

 

QZFA will open for membership within the next few weeks. Franchisees will be able to join via a new website. QZFA will also be looking to connect with owners and operators through Twitter account (@QFranchisees) and Facebook.

 

About QZFA

The Quiznos Franchisee Association is a community of Quiznos franchise owners dedicated to growing franchisee profitability, transparency, enhancing the value of the Quiznos brand and strengthening franchisor-franchisee relationship. QZFA serves as the voice for members committed to protecting their investment for a sustainable future. QZFA is the only association officially sanctioned by Quiznos to represent franchisees.

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BIZZIBIZ Franchise Founder Jim Piccolo Responds to Criticism

Bizzibiz, the new digital marketing franchise opportunity, launched with much hype January 1, 2011.  Much was made in the initial press releases and promotional video of the fact that serial entrepreneur Jim Piccolo had divested himself from his previous business ventures (most notably the controversial multi-level marketing real estate training school Nouveau Riche University) to devote himself full-time to Bizzibiz and its affiliated franchise sales brokerage Extreme Franchise Marketing.

A series of negative events followed.  In February, the Arizona Corporations Commission announced that Jim Piccolo and his previous business partners must pay nearly $6 Million in restitution and fines for defrauding 105 investors via an unregistered real estate scheme.  In April, Bizzibiz’ much-touted relationship with “Mr. Franchise,” franchise attorney Kevin B. Murphy, resulted in litigation (See BIZZIBIZ Suing Mr. Franchise Kevin B Murphy and Franchise Foundations PC).  In June, infomercial king Don Lapre, who was touted as a VP of Extreme Franchise Marketing, was indicted on 41 counts of conspiracy and fraud, accused of defrauding 222,000 people of $52 million.

Jim Piccolo recently responded to issues raised on UnhappyFranchisee.com regarding Bizzibiz, Extreme Franchise Marketing and its controversial associations.  Mr. Piccolo’s response is included, in its entirety, below.  The headings and short explanations (in italics) are ours.

Founder Jim Piccolo on the Bizzibiz Franchise Launch

“August 19, 2011

“DearUnhappyFranchisee.com:

“Since the start of our company in January of this year, BizziBiz has seen many victories and yet faced a few challenges, some of which were brought up on your blog. Certainly the current state of the economy has not made it easier. The development of a unique franchise model in the digital marketing space has been an exciting journey and discovery process.

“On the positive side we are very proud to state that since our official launch 1/1/11 we have empowered 74 franchisees, who have in turn hired 267 sales representatives—many who are brand new and just getting trained. All in all that is a total of 341 people that are finding exciting new careers for themselves, creating new jobs for many who may otherwise be in the unemployment line, and helping businesses become/stay profitable! In addition we have 38 staff members who come to work every day happy to be part of the solution to this country’s economic challenges. Call us what you want, but we truly believe that through good digital marketing, our small business community can grow and flourish. We’ve intentionally put our primary focus on small business, as it is proven that they are a hugely under-served market. While most digital marketing companies focus on the BIG clients because that is where the big money is, we believe that the smaller “grass roots” companies will be, in the long run, extremely loyal and appreciative of our efforts. In addition, we know that many of the large companies in this country started in a garage—including the likes of Microsoft Corporation. We know that our peers criticize us for this position, but I assure you our customers do not. There is not a week that goes by where one of them does not send us small tokens of their appreciation. While we are at it, THANKS to Marybeth King for the brownies and rice crispy treats last Thursday! J Hint, hint, they did not last long.

“Back to the business at hand…In your website’s posts about us, you address several concerns regarding our company’s leadership and clients. My hope is that we can help alleviate your concerns, and shed light onto the facts surrounding those issues.”

[Pictured:  "Jim Piccolo, a renowned visionary and entrepreneur with more than 25 years of experience in a wide variety of service and product industries..."  Source:  Bizzibiz]

Founder Jim Piccolo on Bizzibiz’ digital marketing track record

Bizzibiz digital marketing franchise and its franchise sales affiliate Extreme Franchise Marketing launched January 1, 2011 boasting a very aggressive growth plan.  In an initial post UnhappyFranchisee raised the concern that Bizzibiz and its principals appear to have little digital marketing experience and zero track record as a company.  In fact, Bizzibiz’ own social media presence appears weak, with only 5 tweets and 49 followers (as of today) on its Bizzibiz twitter account and 207 “Likes” on its main Facebook page.
Jim Piccolo responds: “With regards to our track record of success, as a start-up company, we’ve been able to reach hundreds of small business customers in a relatively short period of time, thanks to our loyal franchisees working hard. Some of these companies  had little to no online presence, and as a result of our passionate effort we have been able to deliver measurable results in the areas of website development, SEO, SEM, Social Media Optimization, Email Marketing, etc. –results that are supported in the clients’ monthly reports. Again, as I mentioned above, our business model is primarily tailored toward smaller businesses that have a great need to reach their audiences in the digital space—and we can say that we’ve made a difference for those businesses. Additionally, along the way we have been able to support some digitally well-established businesses and make a significant impact on their digital presence too. We are happy to put you in contact with some of those businesses that can share their experience and results.

“So why have we at BizziBiz not done a better job with our own online presence? We have experienced rapid growth, and as we continue to establish our own brand identity, we have much yet to carry out in our brand messaging. Our attention has been and continues to be on our small business clients and, unfortunately, we have not dedicated the resources to maintain a healthy social presence of our own. We are currently looking at our resources and making some adjustments internally so that we can dedicate efforts to actively manage our social media and online brand reputation and overall web presence. This is a common problem with rapidly growing companies. It reminds me of the parable of the master shoe maker, who was so busy with his craft and serving his customers he and his children wore old shoes. Using this analogy, we, at this point, are pretty much barefoot. When given the choice of happy customers and sore toes or unhappy customers and comfy toes we choose sore toes….at least for now! I know that there are MANY entrepreneurs out there who could say “yep, been there!” As for the rest of you…thank you for understanding.

Founder Jim Piccolo on Bizzibiz’ Association with Don LaPre

The stormy start of the Bizzibiz franchise also involved the arrest of infomercial king Don LaPre, who was listed as VP of Bizzibiz affiliate Extreme Franchise Marketing.  See BIZZIBIZ: VP Don LaPre 2nd Exec Indicted for Fraud

Jim Piccolo responds: “One of the topics that was raised by your postings is BizziBiz’s affiliation with Don Lapre. Don was never a vice president or an officer or employee of BizziBiz. Rather, we utilized his voiceover talents and video production creativity as an outsourced consultant to assist with promotional and training media. Although his consulting services were completed before the unrelated accusations were brought against him, Don acted with great character and ethics in all areas he touched while working with BizziBiz. The product that he produced for us was simply amazing and worth many times what we paid him for it. His title of vice president represented his level in the commission hierarchy as an IBC (Independent Business Consultant) with Xtreme Franchise Marketing, Inc. (XFM), whose website you screen-captured in your post. XFM is a separate company, with a different ownership structure than BizziBiz Franchise, Inc., Xtreme Franchise Marketing, Inc  was created to sell franchises just likeFranChoice, Frannet, and many others.  Additionally, at the time of his indictment, Don was no longer marketing BizziBiz franchises.”

Bizzibiz Founder Jim Piccolo on his Fraud Charges

Much of the initial launch of the Bizzibiz franchise has been focused around the experience and leadership of founder & CEO Jim Piccolo.  Jim Piccolo’s integrity and track record were called into question when in February 17, 2011, the Arizona Corporations Commission announced that Jim Piccolo and his business partners must pay nearly $6 Million in restitution and fines for defrauding 105 investors with unregistered deed of trust investments.  See BIZZIBIZ Franchise Founder Jim Piccolo Defrauded 105 Investors, Says AZ.

Jim Piccolo responds:  “Now to address the fraud charges against me… I was named in the Arizona Securities Division’s investigation of Michael Roberts, Charlevoix Homes and Five Star Capital, despite any direct activity with the company or wrongdoing. I agreed to settle the issue rather than fight the Securities Division, which would have lead to more harm and frustration for the investors—many of whom are friends of mine. An important note to make here is my wife Mary and I conducted careful due diligence and received validation of the opportunity through recognition like the Arizona Small Business Association’s naming of Charlevoix as one of its 50 Arizona Companies to Watch.  We invested in the Charlevoix project and our personal investment was, in fact, monetarily larger than all of the other investors in this dispute. The Consent Decree shows that I agreed to settle this dispute and that no findings of fact were made against me. My attorney, Jeff Matura is open to answer questions if you’d like to contact him:

“Jeffrey C. Matura,  Graif Barrett & Matura, P.C.,  E-Mail: jmatura@gbmlawpc.com”

Jim Piccolo on Bizzibiz Client Youngevity & Dr. Joel Wallach 

Our response to a recent Bizzibiz press release (BIZZIBIZ Franchise, Youngevity & Dr. Joel Wallach) made the point that Bizzibiz seems to invite controversy through its questionable associations.  Its first publicly touted client is run by Dr. Joel Wallach, who has been accused of being a con-man and snake-oil salesman.

Jim Piccolo responds:  “Lastly with regards to Youngevity, they are one of many clients that we help with digital marketing. We believe they are a forward-thinking company that has embraced the potential of the internet/digital marketing to grow their business.  The services we provide are a great fit for their needs. Further, if we did not take on customers because some people didn’t like their founders, or they had lawsuits out against them, we’d have to turn down companies like Microsoft and Apple. We also ask that others who choose to attack us do not do it through our client base.  This is not fair to us and certainly not fair to our clients.”

Jim Piccolo Promises Transparency & Openness

UnhappyFranchisee.com seeks to create conversations that provide both sides of an issue so that our readers can make up their own minds.  We appreciate Jim Piccolo’s response to the issues raised here, and are happy to provide an opportunity to clarify and respond on an ongoing basis.  We have taken him up on his offer to hear from happy Bizzibiz clients on the success of their digital marketing, and would further like to hear from Bizzibiz franchise owners about their experiences.

Jim Piccolo responds: “If the writers at Unhappy Franchisee would like to speak with me further regarding BizziBiz, I would be happy to talk with them, or even do a video interview. We also have many happy customers who would be prepared to share their experiences. I know that these types of blogs tend to bring out only the negative—I guess the happy people don’t bother wasting their time on these forums. Man, if I spent my time writing all the great things that I experience everyday with my work, my family, my kids school, my church, and my friends, I wouldn’t have time to do anything else. A wise mentor of mine once told me, ‘Stay true to your vision, focus on the good, move to help your fellow man with love in your heart and you will reap what you sow.’ Not bad advice, huh?

“Thank you for allowing me to share.

“Sincerely,

“Jim Piccolo

“BizziBiz”

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QUIZNOS: Biggest Collapse in Restaurant History?

Just three years ago, [Quiznos] topped $2 billion in sales. Now, industry observers say the Quiznos sandwich chain, led by Denver investors Rick and Richard Schaden — is $875 million in debt, with sales down 14 percent and 600 stores closed last year. “It’s one of the biggest restaurant collapses in American history,” says restaurant analyst – John Gordon.

(UnhappyFranchisee.com)  The Denver Post reports that the Quiznos chain faces tough finance issues, and may earn the distinction of becoming one of the biggest financial collapses in restaurant chain history.

UnhappyFranchisee.com has been reporting on the rancor between Quiznos corporate and its Quiznos franchise owners for years now.  The Denver Post article cites a report that lists Quiznos adversarial relationship with its franchisees as a major factor in its current dire financial situation:

The problems stem from a highly leveraged investment in 2006, competition from other sandwich purveyors and a protracted battle with the company’s franchisees over operating costs and profitability.

The result is an estimated 14 percent drop in sales last year and the loss of 600 restaurants — the steepest decline of any major fast-food chain, according to restaurant consulting firm Technomic Inc.

Sales in 2010 were about $1.55 billion, down from the 2008 peak of $2.02 billion, Technomic estimated. During the same period, stores declined from about 5,000 to 3,500 and likely are fewer than 3,000 this year.

Quiznos took a big hit when rival Subway introduced toasted subs in 2005, effectively stripping Quiznos of its key differentiator.

Subway delivered another blow with its highly successful $5 foot-long campaign in 2008.  Quiznos’ attempted counter-punch, the $4 “torpedo,” failed to bring back its lost customers.

Instead of working in a unified fashion to beat the competition, Quiznos has also been at war with its franchisees over price gouging and poor marketing strategies, especially in terms of discount promotions:

As Quiznos has fought to maintain market share, it has suffered lingering animosity from some franchisees who say profit margins are lean or nonexistent — due in part to a requirement that franchisees buy food at allegedly above-market prices from a Quiznos-mandated supplier network.

In 2009 Quiznos settled a franchisee class-action lawsuit by agreeing to pay up to $95 million.

The corporate debt problems are troubling to remaining franchise operators, said Justin Klein, a New Jersey attorney who represented franchisees in the lawsuit.

If Quiznos were to default on its debt and file for bankruptcy reorganization, “it would have a negative impact on the investment these franchisees have made in the company. It pretty much puts that investment into the toilet,” Klein said.

Quiznos seems destined to become a franchise restaurant chain cautionary tale, with the moral being that franchisor indifference to franchisee profitability and a callous disregard for the welfare of those who financed your growth will result in a catastrophic failure for all involved.

Quiznos had a great product, strong, enthusiastic franchisees and a golden opportunity to be a leader in the fast casual segment.  What a shame it had to come to this.

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KIDDIE ACADEMY Franchisees Under Fire

(UnhappyFranchisee.com) Sexual Assault.  Infant Neglect. Dangerously Unsanitary Conditions.  You name it, Kiddie Academy franchise owners are under fire for it.

(Also read: KIDDIE ACADEMY Franchise Complaints)

Franchisee-of-the-year charged with sexual assault of a child

In 2008, Louis Himber was recognized as a Kiddie Academy Franchisee of the Year. Now he’s been charged with sexual assault on a child over a six year period.

In 2008, the Derry News story read:  “The owners of Kiddie Academy of Windham… was honored by the premier child care providing company with the Franchisee of the Year award for exceeding Kiddie Academy standards and maintaining awareness of best practices in the early education and child care industry.   The ownership group for Kiddie Academy of Windham consists of Kevin Himber, Lou Himber and Karen Flaherty Himber, Dan and Beverly Kennedy and Dale and Carole Tipple.”

The Windham Kiddy Academy is back in the news.  The August 13, 2011 edition of the Eagle Tribune reads:

Louis Himber, 44, formerly of Londonderry and a co-owner of Kiddie Academy daycare center in Windham, was recently indicted on seven charges by a Rockingham Superior Court grand jury.

The child, who is now 13, was sexually assaulted in Londonderry on multiple occasions between March 2004 and March 2011, according to the indictments. Himber faces five counts of aggravated felonious sexual assault, a felony punishable by 10 to 30 years in prison for each count.

Himber also was indicted on a simple assault charge for punching the child in the arm, a misdemeanor, and a second-degree assault charge for trying to strangle the victim’s mother, the indictments said. Those alleged incidents occurred this year.

Himber’s attorney, Mark Howard, and Kiddie Academy spokeswoman Wendy Odell Magus both maintain that franchisee Himber is solely an "investor" in the business and never worked there. They claim no children at the center were ever in danger.  However, a court order specifically bars Himber from going to the daycare.

This tragedy is one more blow to the reputation of the Kiddy Academy daycare franchise chain. 

5 month old infant dies under care of Kiddie Academy Staten Island

According to a CBS story, on March 25, 2011 5 month-old Jeremy Davlias was dropped off at the Staten Island Kiddie Academy.  The workers there called 911 when they noticed Jeremy was having trouble breathing, but it was too late.  Little Jeremy was dead by the time he reached the hospital.

CBS states that the parents blame Kiddie Academy:

The Davlias said they believe Jeremy would not have died if the facility had done its job.

“I think Jeremy would’ve still been here with us, absolutely,” Oscar said. “There is no question in my mind that he still would’ve been here with us.”

So do the Davlias’ attorney:

“Some of the things that went on here are simply beyond comprehension,” the family’s attorney, Marc Albert, said. “How did nobody take a look at this kid for three hours and ten minutes, especially when they knew he was sick?”

Parents claim the unsanitary conditions at the South Hills, WV Kiddy Academy caused their child to contract mycoplasma.

In January, 2011,  The South Hills, WV Kiddie Academy was shut down for unsanitary conditions.  Parents Kristina Russell and Christopher Aldrich filed a lawsuit claiming Kiddie Academy,  claiming their infant has suffered from mycoplasma, an organism contracted by fecal matter coming into contact with the mouth.

According to the lawsuit, Russell and Aldrich’s child was two years old when he began attending Kiddie Academy in March 2010. The lawsuit claims that Kiddie Academy’s "unsafe and unsanitary conditions," include mold growth in the ceiling, on walls and around the kitchen sink; rodent droppings in multiple locations that included kitchen cabinets and utensil drawers, gnats in the kitchen, food rinsed in a kitchen sink that was not washed nor sanitized; staff members washing their hands after diaper changes in sinks where baby bottles were washed; no hand washing sinks near the diaper changing tables; dirty, stagnant water in the mop bucket and dirty diapers stored in open containers.”

The lawsuit claims that, as a result of these conditions, Russell and Aldrich’s child suffered "serious and permanent neurological injuries, including temporary blindness with a severe visual deficit."  The family is seeking the $500,000 in medical expenses they’ve incurred, as well as punitive damages, attorney fees and interest.

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KIDDIE ACADEMY Franchise Complaints

(UnhappyFranchisee.com)  Kiddie Academy is a Maryland-based daycare franchise founded in 1981 by George and Pauline Miller.  Kiddie Academy provides its franchisees with curriculum and helps them obtain all the licenses and permits necessary to build and operate their franchise daycare business.

According to Entrepreneur, Kiddie Academy rose 103 franchise and 4 company-owned centers in 2010, but then fell to 90 franchise locations and 2 company-owned centers in 2011. A recent company press release states that “Kiddie Academy Domestic Franchising… has over 95 academies located in 24 states, including two company-owned locations. Approximately 70 additional academies are in development, with 15 to 20 new locations slated to open each year.”

Kiddie Academy Boasts of its Extreme Franchise Support

According to the Kiddie Academy website, “Kiddie Academy^® has achieved market leadership by working closely with each of our franchisees to promote the progress and growth of each academy. We make sure that our franchisees have the tools and guidance they need to run their businesses efficiently, so that they can have time for the other priorities in their lives, as well.”

In a personal message on its franchise website, Kiddie Academy President and CEO Michael Miller states that Kiddie Academy was founded on the philosophy that the franchisor will support each franchise location as if it were their own.

Franchise Lawsuits and a Franchise Warning

Despite the upbeat growth projections, Kiddie Academy has suffered a unit decline of greater than 11%, from 107 locations to 95 locations, in the past year.  In recent years, there have been multiple lawsuits involving Kiddie Academy and its franchisees. 

Additionally, a strongly worded warning to stay away from the Kiddie Academy franchise recently appeared on Rip-Off Report:

Kiddie Academy Kiddie Academy Franchising Rip off, beware of giving them any MONEY!!! Don’t fulfill their promises!!! Go with any other child care franchise!! Abingdon , Maryland

Joerg — St. Louis Missouri United States of America

Submitted: Tuesday, August 09, 2011

Beware of giving these guys your hard earned money.

They don’t fulfill promises or even contracts.

Read the fine print.

Distrust these guys.

Go with any other child care franchise if you want to really make an investment.

Go with any other child care franchise if you don’t want to lose your money.

Beware of the CEO, Beware of the sales men.

Ask to meet EVERYBODY that will be interacting with you (from start to end) and you’ll really see what they are all about.

A rebuttal post followed:

Ask Our Franchisees

AUTHOR: Kiddie Academy Domestic Franchising – Abingdon (United States of America)

SUBMITTED: Friday, August 12, 2011

POSTED: Friday, August 12, 2011

It is unfortunate that you had a dissatisfying experience. I welcome you to contact me directly so we can try and resolve your concerns. With a 30 year track record of helping build successful child care facilities across the country, we are proud of the integrity of our company, the quality of our people and value of our business opportunity.

Consistently heralded by our franchisees for our commitment to their success, Kiddie Academy has demonstrated our willingness to work with franchisees in achieving their desire for business ownership. Hear directly from our franchisees by visiting www.kiddieacademyfranchising.com. Our franchisees’ feedback speaks for itself and for the Kiddie Academy business.

So, we ask our readers, franchisees, employees and those familiar with the Kiddie Academy franchise:

Is the Kiddie Academy Franchise a Scam and rip-off to be avoided at all costs?

OR

Is the Kiddie Academy a growing franchise organization with a franchisor dedicated to the success of each location?

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STRATUS BUILDING SOLUTIONS Franchise Class Action Lawsuit Filed

Attorney Jonathan Fortman has filed a class action lawsuit on behalf of 3 franchisees against the Stratus Building Solutions janitorial franchisor.

According to a message left on UnhappyFranchisee.com earlier today, the 3 Stratus franchise owners (all based in Missouri) claim they were enticed into signing the Stratus franchise agreement through the use of false and misleading information. 

They claim that once they signed up as Stratus franchise owners, the franchisor failed to provide the services promised in the franchise agreement. 

The franchisees’ suit also alleges that Stratus Building Solutions violated Missouri law by improper termination of franchisees.

Jonathan Fortman invites Stratus Building Franchisees who want to discuss their experiences with this franchise to contact him directly.

Fortman’s message and contact information follows:

Jonathan E. Fortman

Submitted on 2011/08/13 at 3:59 am

My name is Jonathan Fortman and I’m an attorney in the St. Louis area, the hometown of Stratus.. On August 13, 2011, I filed a class action lawsuit in the Circuit Court of the City of St. Louis on behalf of 3 plaintiffs who purchased Stratus franchises. The franchisees allege that Stratus gave them false and misleading information to get the to sign the franchise agreement, failed to provide services it agreed to provide in the franchise agreement and violated Missouri law by terminating franchises without proper notice. We are seeking to have the case certified as a class action on behalf of all Missouri franchisees who had losses due to the improper conduct of corporate. I would be happy to discuss any of your experiences you had with this franchise. Feel free to contact me anytime at (314) 522-2312 or by email at jef@fortmanlaw.,com. . If you are already represented by an attorney, please pass this message to your attorney. I wish you all the best of luck in this matter. Just remember you are not alone.

Jonathan E. Fortman

LAW OFFICE OF JONATHAN E. FORTMAN, LLC

79 Hubble Dr., Suite 101

Dardenne Prairie, Missouri 63368

(314) 522-2312

(314) 524-1519 fax

jef@fortmanlaw.com

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BIZZIBIZ Franchise, Youngevity & Dr. Joel Wallach

Bizzibiz, the new digital marketing franchise, has a new social media client:  Multi-level marketing company Youngevity, run the controversial Dr. Joel Wallach.

In yesterday’s press release (included below), Youngevity’s VP of Marketing Vanessa Hunter is quoted as saying “BizziBiz has a great track record of success helping businesses increase their online visibility. We believe they are the perfect technology partner to bring us to the next level of engagement and beyond.”

What is the Bizzibiz “track record of success”?

We’re not sure what track record of success Ms. Hunter is referring to.  Since the launch of the Bizzibiz franchise in January, 2011, Bizzibiz has done little to offset its own Internet public relations nightmare.

In February, 2011, the Arizona Corporations Commission announced that Bizzibiz founder & CEO Jim Piccolo and his previous business partners must pay nearly $6 million in restitution and fines for defrauding 105 investors.  (Read: BIZZIBIZ Franchise Founder Jim Piccolo Defrauded 105 Investors, Says AZ )

In April, 2011, the company filed a lawsuit for legal malpractice against its own franchise attorney and Director of Franchising (Read: BIZZIBIZ Suing Mr. Franchise Kevin B Murphy and Franchise Foundations PC)

In June, 2011, TV huckster Don LaPre – who the company’s Extreme Franchise Marketing arm touted as Vice President, was indicted on 41 counts of conspiracy and fraud, and accused of defrauding 222,000 people of $52 million.  LaPre was arrested after reportedly hiding out in a health club locker room for two days, where he allegedly stabbed himself repeatedly. (Read:  BIZZIBIZ: VP Don LaPre 2nd Exec Indicted for Fraud)

How has Bizzibiz used social media to address these controversial happenings?  Have they addressed or rebutted the critical assertions coursing through the blogosphere, on this site and others?

It appears that they have done nothing except tout their association with another controversial figure, Dr. Joel Wallach.

“A snake-oil sales pitch if there ever was one.”

Bizzibiz client Dr. Joel Wallach and Youngevity have already amassed lots of negative buzz on the Internet already.  Here’s what the critics are saying:

“The lies of Wallach and Australian Longevity may do more harm than simply ripping people off. Several of Wallachs claims are potentially dangerous, and some of his products may be harmful.”  Stuart Adams (Dr. Wallach Exposed)

“Wallach has a long history of involvement in dubious healthcare schemes, such laetrile treatment for cancer, as well as chelation and hydrogen peroxide therapies for coronary artery disease.”  James Pontolillo

“Dr. Wallach is an engaging and entertaining speaker… but this is a snake-oil sales pitch if there ever was one.”  NutriTeam Health Watch

Here’s the press release:

Youngevity®, Direct Marketer of Nutrition and Lifestyle Products, Takes the Leap into Digital Marketing

Consumer Cloud to Provide Vehicle for Greater Growth

 

“With our global network of distributors, we’re well-positioned to leverage social media marketing to our advantage."

San Diego, CA (PRWEB) August 01, 2011

Javalution Coffee Company (JCOF-PK), Youngevity Essential Life Sciences (http://www.youngevity.com), a direct marketer of lifestyle and nutritional products, including gourmet healthy coffee, has selected digital marketing specialists BizziBiz (http://www.BizziBiz.com) to significantly enhance its presence in the digital world. This commitment to social media marketing is central to the company’s growth strategy of mobilizing customers and distributors and their social reach or "network cloud."

According to Vanessa Hunter, vice president of Marketing at Youngevity, BizziBiz will work with Youngevity to help the company enhance its use of social media to grow its online visibility, strengthen its brand and reputation, and allow distributors and customers to more actively engage with the company.

“Word-of-mouth advertising, or referral marketing, is extraordinarily powerful in today’s social networking world,” said Hunter. “With our global network of distributors, we’re well-positioned to leverage social media marketing to our advantage. BizziBiz has a great track record of success helping businesses increase their online visibility. We believe they are the perfect technology partner to bring us to the next level of engagement and beyond.”

Zach Ferres, Tribal Leader at BizziBiz said, “We’re thrilled at the opportunity to work with Youngevity, because they have such a creative vision about the digital era and using online tools to attract distributors and customers. They are an innovative, fast-growing company with lots of energy. Our tool set is a great fit for them.”

About Youngevity

Youngevity Essential Life Sciences (http://www.youngevity.com), a wholly-owned subsidiary of AL Global Corporation, is a nutritional and coffee company dedicated to improving lifestyles through vibrant health and flourishing economics. Founded in 1997 by Drs. Joel Wallach, DVM, ND and Ma Lan, MD, Youngevity is the only network marketing company with an FDA-authorized health claim. CLR Roasters, a coffee roasting and distribution company, is a wholly owned subsidiary.

On July 11, 2011 Youngevity merged with Javalution Coffee Company (PINKSHEETS: JCOF) (http://www.javalution.com), which owns and distributes Café La Rica and other brands, which are distributed to retailers. Javalution also roasts the JavaFit® brand of coffee with health benefits.

ARE YOU FAMILIAR WITH BIZZIBIZ, YOUNGEVITY OR DR. JOEL WALLACH?  SHARE A COMMENT BELOW?

PRIMROSE SCHOOLS: Franchise Owner Charged With Rape

Primrose Schools childcare franchise now has its very own Franchisee from Hell.

According to FOX19 news in Lebanon, Ohio, the Maineville, OH Primrose Schools childcare franchise is being shut down after the owner was charged with the rape of a 13-year-old.

The alleged 13-year-old victim was not a student of Primrose Schools.

According to the news report:

John Foster, 36, was arrested last Wednesday. He was arraigned on Thursday morning and is being held in the Warren County Jail on a $500,000 bond.

Foster is a franchise owner of the Primrose School in Maineville. He and his wife opened the school in 2008. Police say at this point, they have no reported incidents involving Primrose students.

According to court documents, Foster engaged in sexual conduct with a girl under 13 from 1999 until 2003.

Foster has been ordered to stay away from the victim and all children under the age of 18…

According to the President of Primrose, Jo Kirchner, the license of the franchisee has been officially terminated.

Because of the ongoing investigation, Primrose schools felt it was in the best interest of the students and their parents to shut down the school. The students will be able to attend school at one of the three other Primrose locations.

The decision to close the school came after a meeting Thursday night with the parents of the students that attend the school and the owners of the other locations.

Foster and his wife co-own the private daycare and preschool franchise.

The Foster’s Primrose Schools franchise location offered daycare and kindergarten and had announced plans to add one first-grade class this fall.

About Primrose Schools (from the Primrose Schools website): 

“In 2008, Primrose Schools entered into a strategic equity partnership with Roark Capital Group, an Atlanta-based private equity firm. Primrose was their first investment to be made in the educational category. The capital from this partnership will allow Primrose Schools to continue to invest in infrastructure, innovation, and our franchise system to maintain continual improvement for the Primrose brand at all levels and raise consumer recognition across the country.

“In 2010, Primrose Schools unveiled our new Primrose School of Education, where we conduct regular training for school staff members and franchise owners. From our beginnings in a single school to the opening of our downtown Atlanta location in 2010, Primrose Schools has grown to more than 220 schools in 15 states.”

ARE YOU FAMILIAR WITH JOHN FOSTER, PRIMROSE SCHOOLS OR ITS FRANCHISE OWNERS?  SHOULD DAYCARE FRANCHISE OWNERS BE MORE CAREFULLY SCREENED? SHARE A COMMENT BELOW.

Email us at UnhappyFranchisee[at]gmail.com.

BIZZIBIZ: VP Don LaPre 2nd Exec Indicted for Fraud

 

The Bizzibiz digital marketing franchise is off to a rough start!

Early press releases touted a high profile management team that included founder Jim Piccolo, King of the Infomercials Don LaPre and “Mr. Franchise” Kevin Murphy.

Founder and CEO Jim Piccolo was indicted for fraud (Read: BIZZIBIZ Franchise Founder Jim Piccolo Defrauded 105 Investors, Says AZ )

The company fired, and is suing, “Mr. Franchise” (Read:  BIZZIBIZ Suing Mr. Franchise Kevin B Murphy and Franchise Foundations PC)

In June, TV huckster and Extreme Franchise Marketing Vice President Don LaPre was indicted for fraud.

According to the Washington Post, “Lapre was indicted on 41 counts of conspiracy and fraud, accused of defrauding 222,000 people of $52 million between 2003 and 2007. He was arrested Wednesday after failing to appear at his arraignment and spending 24 hours on the lam.”

Don Lapre Touted as Bizzibiz Infomercial Producer, Extreme Franchise Marketing Vice President

A press release from the company bragged that the infamous Don LaPre had created a “Movie-Style Infomercial Designed to Attract Entrepreneurs to [the Bizzibiz] Digital Marketing Services Franchise Opportunity’:

Known as the “King of Infomercials” for his tremendous success in the industry, the Director and Creator of this BizziBiz infomercial was Don Lapre. When asked about his vision for this project, Lapre said, “The goal was to add real-life issues into a story that pulls people in while simultaneously promoting BizziBiz as the answer for so many people who are looking to branch out into a better career.”

Lapre went on to say, “I have created a lot of hits and a lot of failures, but when they hit, they are big and this infomercial has the ability to put BizziBiz on the map. I believe this could become the first successful movie-style infomercial promoting a franchise – that’s something that has never been done before.”

Until recently, Don LaPre was listed prominently as Vice President of Bizzibiz sales affiliate Extreme Franchise Marketing on that company’s website. [See screen above - now deleted]

After a long, propaganda-like bio of the controversial Don LaPre, the website states:  “Through Extreme Franchise Marketing (XFM), Don Lapre has found a new way to continue his mission of making a positive impact in the lives of others. He’s thrilled about the amazing possibilities!”

LaPre could soon be selling “Little Tiny Ads” from federal prison

According to a June 15, 2011 press release issued by the U.S. Attorney, District of Arizona:

A federal grand jury in Phoenix has returned a 41-count indictment against Donald Lapre of Phoenix, for Conspiracy, Mail Fraud, Wire Fraud, Promotional Money Laundering and Transactional Money Laundering. The indictment, returned last week, alleges that the 47-year-old Lapre oversaw and promoted a nationwide scheme to sell essentially worthless Internet-based businesses to over 220,000 victims through his company “The Greatest Vitamin in the World.”

…According to the indictment, from April 2003 through October 2007, Lapre allegedly conspired with others to defraud thousands of victims all across the country by encouraging them to invest in an Internet-based business. The “business” primarily consisted of selling the Greatest Vitamin in the World (GVW) over the Internet and the opportunity to sell the opportunity to do the same thing to others. At the height of the scheme, Lapre had enlisted approximately 226,794 people to sell a limited number of products via individual websites. Along with selling tens of thousands of Internet-based businesses which were essentially worthless, Lapre fraudulently provided his investor/victims, known as “Independent Advertisers” (IAs), with false vitamin sales records. These records encouraged IAs to purchase additional advertising and services in the hope of obtaining commissions including $1,000 checks. Lapre also fraudulently sold bulk Internet traffic to IAs while claiming that it was targeted to individuals who were seeking to either buy vitamins or invest in similar businesses. GVW sales representatives regularly signed up victims as IAs even if they did not own a computer. During the course of the scheme, at least 220,000 victim/IAs were defrauded of approximately $51.8 million. During this same period, approximately $6.3 million in commissions were paid to approximately 5,000 victim/IAs.

Convictions in this case for Conspiracy carry a maximum penalty of five years, a $250,000 fine or both; Mail Fraud and Wire Fraud carry a maximum penalty of 25 years, a $250,000 fine or both; Promotional Money Laundering carry a maximum penalty of 20 years, a $500,000 fine or both; and Transactional Money Laundering carry a maximum penalty of 10 years, a $250,000 fine or both.

ARE YOU FAMILIAR WITH DON LAPRE, JAMES PICCOLO, NOUVEAU RICHE UNIVERSITY &/OR THE BIZZIBIZ FRANCHISE? SHARE AN OPINION OR PERSPECTIVE BELOW.

QUIZNOS: Franchise Karma Avenges Sub-Standard Promotions

Unhappy Franchisee contends that Quiznos current misfortune is the result of Franchise Karma exacting revenge for past, well-documented misdeeds.

Usually these misdeeds were the result of a Quiznos corporate attitude that its franchise population was like a mountainside ripe for stripmining.

UnhappyFranchisee.com and other blogs have been documenting these misdeeds for years.  We are revisiting these posts and discussions as part of our Franchise Karma is a B*tch series.

(Also read: QUIZNOS OVERVIEW & DISCUSSION, QUIZNOS Woes: Franchise Karma is a B*tch,  QUIZNOS Woes: Sean Kelly’s “How to Make $75 MILLION in 3 EZ Steps!”)

Today’s post is a rebroadcast of “Why Your Quiznos Won’t Give You a Free Sub.” published February 26, 2009 by Sean Kelly.

*   *   *   *   *

Why Your Quiznos Won’t Give You a Free Sub

February 26, 2009 by Sean Kelly

Why oh why would Quiznos announce a million sub giveaway, and then issue free sub coupons that your local franchisee won’t honor?

Because Quiznos’ amazing talent for shooting itself in the foot is surpassed only by the speed with which it reloads.

To put it simply, Quiznos corporate decided to give away 1,000,000 subs that weren’t theirs to give away. Quiznos not only expected its franchisees to foot the bill for the millions in food giveaways, Quiznos corporate would actually make money selling them the ingredients.

Ex-Quiznos franchisee Rich Piotrowski explains:

The reason so many Franchisees are not honoring this coupon is that the company delayed this promo TWICE, as many of the Franchisees said they would not go along unless Quiznos Corporate (which makes about a hundred million a year selling food to its franchisees, and prohibits them from buying food from anyone else) paid for the food in this promotion.

Late last week, Quiznos decided to roll it out anyhow saying no, franchisees would have to pay the entire cost. Every other system (such as Denny’s Arby’s etc) the cost of the promo was shared by both parties. In addition, most of those system sell food at cost to Franchisees. Like those other systems, Quiznos makes money by collecting a 7% royalty and 4% from franchisees which they say is for advertising. Unlike those other systems however, on top of those fees, Quiznos makes that hundred million IN ADDITION by selling food to them.

And you wonder why Franchisees are not honoring the coupon?

In related news, the SBA has released a report showing that Quiznos franchisees have the highest loan default rate of any franchise chain.

And Quiznos CEO Dave Deno has resigned and infamous Quiznos founder Rick Schaden has once again taken the reins to ensure that franchisees continue to get toasted to a crispy brown.

Comments on the original post:

By Deanna:

I just went to Quiznos with my coupon in hand. I was greeted with all smiles until I mentioned the coupon. I was told they were not honoring it. I said it was OK and turned to leave. The cash register girl asked the guy making the sandwich(possibly the owner or mgr) if she could give it to me anyway since the sandwich was almost finished. The guy gave a frustrated look and just walked away, not finishing the sandwich preparation, just leaving it for the cash register girl to finish. It was supposed to be a honey bacon club with everything. I received a couple slices of ham with onion, that’s it! It looked pretty bad, and I didn’t trust eating it so I threw it out. I was made to feel like charity for this disgusting sandwich. That will be my last visit to Quiznos.

By Carol:

I just fired this off to Quiznos Corporate:

My husband and I took our little boy in to redeem our Free Sub from the coupon issued to me in your Million Sub promo. The man at the register said it had “already been used”, which is 100% false. They would not accept the coupon, and they kept the coupon since I refused to pay for what was supposed to be a free sub. He also said that they had many customers with the same problem who were very angry.

This promotion of yours is a DISASTER. One million outraged and disgruntled customers will tell another million people about what a scam you people at Quiznos pulled. If restitution is not made to our family, I can promise you that no one in our immediate and extended family will EVER set foot in another Quiznos as long as we live (or as long as there is a Quiznos, which, at this point, looks doubtful). I also will be visiting a great number of the consumer complaint websites, as well as registering a complaint with the Better Business Bureau and our NJ Office of Consumer Affairs.

I want you to call me directly. If I do not hear back from someone from Quiznos by the end of the work week March 6, my hand will be forced and I will be contacting the mentioned parties, as well as a friend at Business Week.

This entire experience was horrible. People in Quiznos were hearing everything I had to say about never ever returning to Quiznos, and frankly, the sandwich didn’t even look that appealing. The franchise in Wayne Hills Mall is not very welcoming anyway.

The way this Million Sub giveaway was handled is an bright shining example of how NOT to run a promotion. If it was meant to foster good will with your customers, you have failed miserably. Right now, Quiznos is Public Enemy Number 1.

By Villa:

That’s the problem in corporate America: Most think when getting a franchise everything is easier. Wrong. Putting a (real) entrepreneur into a franchise is like putting an creative artist in jail.

In my opinion only a few franchises are really worth it: Like McD, maybe Burger King and Wendys and maybe Subway (only because the brand is good).

Quiznos is the most stupid system. I remeber 2 years ago the TV shows “Own your own Quiznos” where corporate tried to sell a restaurant to almost everybody. If you are a good entrepreneur, save the money for the franchise and open your own individual store. You must be better than others!

By Carol Cross:

In the food wars and in the saturated “fast food” sector, the franchisors are fighting to compete and retain their market share with coupons and free stuff, etc.. Franchisees, as always, are calculated sacrifices to this competition.

The margins for the surviving Quiznos franchisees are very “thin” to begin with, but while it may not do anything for the franchisees, it does mean that increased traffic will increase the EBITDA for the franchisor who shares none of the overhead costs of producing free subs.

Quiznos, of course, is the poster franchisor for exploitation of franchisees. It is no wonder that many of their franchisees will revolt and not honor the coupons.

By Windel:

Sounds like there needs to be some restructuring of franchise and corporate law in this country…

It also sounds like that this country would be better off without any Quiznos anywhere…

C’mon – It’s a sub shop… Other sub shops have ovens now, and can toast your sandwich… The only thing that makes Quiznos different, is that they charge more for their food, and that the corporate office is willing to be a little more evil than average…

ARE YOU FAMILIAR WITH QUIZNOS?  WILL AMERICA “BE BETTER OFF WITHOUT QUIZNOS”?  SHARE A COMMENT BELOW.

Email us at UnhappyFranchisee[at]gmail.com.