WINDOW WORLD Lawsuit Alleges Illegal Franchise Sales
January 27, 2012
Window World, Inc.®, headquartered in North Wilkesboro, N.C., claims to be America’s largest replacement window company with stores and offices in more than 200 cities nationwide.
Window World has grown to more than 200 cities by selling what it termed “license agreements,” not franchises. In an October, 2011 letter to Window World “licensees,” Window World CEO Tammy Whitworth and Window World President Dana Deem admit that their “license,” according to the Federal Trade Commission (FTC) and some state agencies, actually meets the definition of a “franchise.”
Since Window World has not complied with franchise registration and disclosure laws (which includes providing prospective franchisees with a Franchise Disclosure Document, or FDD), Window World has in essence admitted to having sold illegal franchises for several years.
The letter offers Window World “licensees” one of two options: sign the new Window World franchise agreement and (assumedly) let Window World off the legal hook, or rebrand as an independent, and turn over all Window World manuals, forms and proprietary stuff. If a “licensee” opts for the latter, Window World will pay them back their initial fee minus any profit they derived from their business.
Window World “licensee” David Hampton and his Window World of Chicagoland, LLC (“WWC”) is opting for a third option: file a lawsuit in US District Court against Window World, Inc., Tammy Whitworth and Dana Deem.
According to the lawsuit:
This is an action for rescission and damages based on Defendants’ violations of the Illinois Franchise Disclosure Act, 805 ILCS 705/1 et seq. by, among other things, failing to register as a franchise under the Illinois Franchise Disclosure Act (“IFDA”) and making fraudulent representations and omissions in connection with the sale of an unregistered franchise. Plaintiffs also seek damages for Defendants’ breach of contract arising out of Defendants’ denial of Plaintiffs’ right of first refusal by establishing a new territory adjacent to Plaintiffs’ territory. As a result of Defendants’ wrongful conduct, Plaintiffs’ customer base has dwindled and the once thriving business has over night been devalued causing Defendants substantial monetary damages entitling them to recover damages and/or rescission under Illinois law.
David Hampton and Window World of Chicagoland, LLC are seeking rescission of the License Agreements and/or an award of damages, including their reasonable attorneys’ fees and court costs, in an amount in excess of $75,000, and for an award of punitive damages.
David Hampton and Window World of Chicagoland, LLC are represented by Alice A. Kelly of Chicago-based The Kelly Law Group, LLC.
Window World Franchise Lawsuit Documents (pdf format)
WINDOW WORLD Franchise Complaint (Legal Complaint)
Window World Letter to Franchisees (Exhibit C)
Window World Final Judgement & Consent Decree (Exhibit D)
ARE YOU FAMILIAR WITH WINDOW WORLD? WHAT DO YOU THINK? SHARE A COMMENT BELOW!
To contact the author and site admin, email UnhappyFranchisee[at]gmail.com
COLD STONE CREAMERY Franchise Complaints
January 27, 2012
According to the leading source of franchise misinformation, Entrepreneur magazine, Cold Stone Creamery is one of the world’s top 50 franchises.
According to many who believed the deceptive advertising hype and bought a franchise, Cold Stone Creamery is one of the worst franchise investments in recent history.
In addition to UnhappyFranchisee.com, websites like BlueMauMau.org and ColdStoneFacts.org contain numerous franchise horror stories.
We’ve included some of the Cold Stone Creamery franchise complaints below.
[Read more Cold Stone Creamery franchise stories]
Allegations include franchise churning, vendor kickbacks and under-the-table “rebates,” excessive discounting and couponing, lack of franchise support, and a broken, unsustainable business model.
What do you think? Do you have a Cold Stone Creamery franchise complaint or horror story to share? If so, please leave a comment below.
Cold Stone Creamery Franchise Complaints
Current franchisee wrote:
The problem with Cold Stone is its management. Dan Beem and Kevin Blackwell are the worse managers in the history of franchising. They have allowed this thing to get so far out of control that it is now impossible to save. (BMM)
David wrote:
I am a Cold Stone franchise owner with three stores and no one knows better than me of the misery that comes with being a Cold Stone Creamery franchisee. There are stores planning to close across the country. I am planning to close my stores as well. Despite having a very high volume of sales, we cannot make a profit in these stores because of Kahala’s kickbacks. My wife and I cannot even pay our mortgage Me and other franchisees will lose millions, our homes, I even had to pull my kids out of college because I spent their college fund trying to keep my stores open.
Cold Stone Creamery is among the most unsuccessful franchises in the nation and everyone should know that!
http://blogs.roanoke.com/storefront/2011/01/warm-treats-on-the-way-to-cold-stone/
Unfortunately Still a Franchisee wrote:
Cold Stone is quick to point the finger at you if you are not profitable. They will actually accuse you of not reporting all your sales so you could get away from paying royalties. This franchise is nothing but a pyramid scheme aimed at taking advantage of hard working individuals with entrepreneurial spirits. We pray that those like us who are still in this nightmare persevere and those that are out mend their broken lives and find a way to get this behind them.
ex-Cold Stone franchisee wrote:
As an ex-Cold Stone franchisee, I also had to withstand the onslaught of the Kahala regime. I called myself being a nice guy and giving them forewarning that I would be closing my store in two weeks. For some odd reason, I expected them to send me a letter thanking me for my dedicated service. Instead they sent me a termination letter and then began to call and harass me to turn over my keys to them. They began showing up at my store unannounced to (“inspect”) verbally harass me. When I told them I planned to remove my equipment and sell it, they became even more hostile, telling me they had a right to the equipment and that they would sue me if I didn’t turn over the equipment and get out immediately. This went on for two agonizing weeks. They stood out in front of my store for a full hour to watch me load my equipment onto the truck and to harass me about what I was removing from the store…
In a letter to CNBC’s Darren Rovell, another Cold Stone franchisee wrote:
[Kahala/Cold Stone] were not there when we began to keep us on the right track, they were not there when we were failing, and they were not there to help us when we failed. They assigned us a trainee area developer who didn’t help us with ordering and inventory, they had us report sales and income daily and we expected feedback if we were doing anything to lead to failure and after we closed our store, they were still taking out franchise fees. They were terrible to us and to 400 plus franchisees.
…We were promised that there is so much money to make but we lost all in six short months.
… We learned a very expensive lesson about payroll taxes, high taxes in general, Kahala fees being ridiculously high and Kahala kickbacks. We used our retirement and our children’s college funds hoping to make our $500,000 and get us on the road to retirement. We were forced to walk, bankruptcy and nearly lost our home… (BMM)
Another Kahala Cold Stone Creamery franchisee wrote:
Kahala has gotten so greedy that the kickbacks received by them in 2010 were $13 Million. Franchisees like myself, invested $350,000 and saw no support to be successful. They got our money, made their profit, and continued making profit. We closed our doors after six short months. Kahala continued taking franchisee fees and advertising fees from our accounts even after we closed the store. Readers, please don’t buy into this rosy picture. Kahala and Dan Beam are thieves and they will have to restore losses to all the 400+ franchisees who lost their stores, believing in this company cared about them. " (BMM)
Current franchisee wrote:
Me and my husband are losing everything we’ve worked for and all these people care about is having franchisees sell more ice cream. It’s all very upsetting what’s happening to us and so many others and I really want this nightmare to be over. I can’t take it anymore. I regret the day I ever heard the name Cold Stone. Cold Stone has cost me and my family so much pain and we have lost everything. And all Cold Stone cares about is us turning over our stores to them so they can resell them to another innocent family.
These people are evil. (BMM)
Are you familiar with the Cold Stone Creamery franchise? Please share a comment, opinion or observation below.
To contact the author and site admin, email UnhappyFranchisee[at]gmail.com
DAYS INN Franchise Complaints
January 24, 2012
Days Inn franchise owners are invited to share their complaints, frustrations and advice with prospective franchise owners below.
Sometimes getting to the truth behind the franchise hype is difficult.
Despite the fact that the number of Days Inn domestic franchises has been declining in recent years, Entrepreneur magazine has been giving Days Inn progressively higher rankings in its much hyped Franchise 500.
2012 Ranked #5 of the top 500 franchises (# US units not broken out)
2011 1,662 (Ranked #6)
2010 1,677 (Ranked #21)
2009 1,681 (Ranked #22)
2008 1,706 (Ranked #31)
Days Inn Worldwide is part of the Wyndham Worldwide family of hotels which also includes Baymont Inns & Suites, Hawthorn Suites, Howard Johnson Int’l., Knights Franchise Systems, Microtel Inns & Suites, Ramada Worldwide, Super 8, Travelodge Hotels, Wingate by Wyndham, and Wyndham Hotels and Resorts.
While the number of U.S. Days Inn franchises has been declining, Entrepreneur magazine keeps increasing its ranking.
Is the Days Inn franchise really improving every year?
Does Days Inn franchise provide the training, support, marketing and systems it promises?
Is Days Inn franchise and parent Wyndham Worldwide genuinely dedicated to the success of its franchise owners?
Please share a comment, opinion or insight below.
ARE YOU FAMILIAR WITH THE DAYS INN FRANCHISE? WHAT COMPLAINTS DO DAYS INN FRANCHISEES HAVE? PLEASE SHARE A COMMENT BELOW.
To contact the site admin, email UnhappyFranchisee[at]gmail.com.
7-Eleven Franchise Complaints
January 24, 2012
7-Eleven franchise owners are invited to share their complaints, frustrations and advice with prospective franchise owners below.
UnhappyFranchisee.com believes that no franchise system is perfect, and that it benefits everyone when new franchisees sign on with realistic expectations and advance knowledge of the challenges and frustrations they may face.
7-Eleven franchise website promises its franchisees world-class support: “Because we want you to spend your time operating your store and growing your business, we provide you with a level of support that is not just among the best in the convenience store industry—our support goes above and beyond, setting standards for franchises across all industries.”
7-Eleven franchise website boasts that it provides support by sending a business consultant to each store twice per week:
In order for 7-Eleven® to be successful, you have to be successful. That’s why we provide a personal Business Consultant to help you with all the challenges involved with running your own business.
We provide personal support to help you succeed
What are Business Consultants?
A Business Consultant is a 7-Eleven employee assigned to your store and who visits your store twice a week.
Here are just a few of the things your Business Consultant can do for you:
- Assist in the development of budgets and business plans for your store
- Provide advice, coaching and assistance on how to improve the business
- Assist with the analysis of your store’s sales data
- Provide continual training and guidance on our ever-improving system
- Promote efficiency to help maximize your store’s profitability
7-Eleven named the #1 franchise in Entrepreneur magazine’s 2011 Franchise 500. (See the UnhappyFranchisee.com discussion here: Top 100 Franchise Opportunities 2011: Behind The Hype) and has now been named the #3 franchise in Entrepreneur magazine’s 2012 Franchise 500 as well.
Are the accolades well-deserved?
Does 7-Eleven provide the training, support, marketing and systems it promises?
Is 7-Eleven genuinely dedicated to the success of its franchise owners?
Please share a comment, opinion or insight below.
ARE YOU FAMILIAR WITH THE 7-ELEVEN FRANCHISE? WHAT COMPLAINTS DO 7-ELEVEN FRANCHISEES HAVE? PLEASE SHARE A COMMENT BELOW.
To contact the site admin, email UnhappyFranchisee[at]gmail.com.
SUBWAY Franchise Complaints
January 24, 2012
Subway franchise owners are invited to share their complaints and frustrations, as well as advice for prospective Subway franchise owners, below.
Anonymous comments are encouraged, and all email addresses and other information is treated with strict confidentiality.
Around the Internet, complaints have arisen from many Subway franchise owners who feel that they are being victimized by their franchisor, and by founder Fred DeLuca in particular.
Ex-Subway franchisee Jim Eddie claims “whole subway system is a scam,” and called his time as a Subway franchise owner “the worse year of our life.”
Another Subway franchise owner writes “Subway use to be a great opportunity for all but now it’s like doing time each and every time I walk through my doors…”
Subway franchisee Debra claims “subway ownership is hell on earth.”
Here are some comments posted on the Complaints Board website:
ConcernedSubwayOwner wrote:
I was a 3 store owner with Subway. I was franchisee of the year for my region. Then our Development Agents changed and with in 14 months I was forced to sell all 3 locations because I was all of a sudden considered a bad operator. All the while, my stores out performed the market, and the stores of my new Development Agent. In a period of 14 months over 40 stores in our Southern California Market were flipped. All were forced to sell due to "compliance" issues. Most of the stores were above market average. The new Subway Development Agent, the Marwaha Group, in its role of Development Agent has the responsibility to do the Compliance Inspections. Interestingly, they or their immediate Family members were the only approved "buyers" in the 40 locations that flipped.
When Subway Corporate was questioned, the response was that the old Development Agents (who were DA Market of the Year in 2001), Subway Corporate said that the old Development Agents were scumbags, lazy, etc.… Subway was not only aware of the problems, but actively condoned the following potentially ilegal behaviour: Price Fixing, Racketeering, Fraud, and Forgery…
doingtime wrote:
… I was told by my business consultant that all of the "twenty year" people should very worried about our stores. That Fred Deluca and his cronies want us out so they can turn the stores over to make money on the start up costs. He suggested that I start keeping a journal about my inspection experiences, which by the way have gotten horrible. They are so bad that I have started to video tape my stores after each inspection to protect myself.
I have a couple of stores that do way, way over the territory average in sales. Fred makes a lot of money off of me in royalities every year. So instead of giving me a pat on the back and a "good job" I get this… You have syrup on your trash can, the handle to your toaster oven has sauce on it, the pvc pipes under your three bain sink has dust on it, your microwave is dirty your bathroom smells, there are straw wrappers on your floors, etc… all of this during a lunch time where the customers are line up into our parking lot!!!
…It is not enough that I work all day everyday, that I have higher sales than most others in my territory, that my customers go up to this twit as he sits in my handicapp seating typing crap that he is making up half the time, telling him that my stores are the best that they have ever been to (by the way he doesn’t mention that in his report). What he does mention is that my places are dirty and marks me out of compliance. I then get a letter from the legal department threating to take my stores. I for one am sick and tired of it. I’m stressed all the time.
Way back when Subway use to be a great opportunity for all but now it’s like doing time each and every time I walk through my doors…
debra wrote:
Owning a subway. They don’t even use the Vaseline when they screw you. They do want to ditch u at 20 years. They are killing me literally health wise. U can never keep them (subway world headquarters) happy… Subway world headquarters in Milford conneticut owned by Fred Deluca, makes it impossible for Subway owners to even break even with THE $5 ft. Sub, let alone certificates & coupons added on it.
…owners work 7 days a week, r exhausted n r constantly harassed by Subway, they r punished to the point where we either die of subway-itis or they take everything we worked for away.
… So if u now made the mistake of buying into " the #1 Franchise" I also advice, get a good attorney on retainer to read the phone books of information u r required to read. Get a good doctor, because they run u to the ground until u r dead or take that store away, n give u nothing for it while they resell it for $250, 000.00 Minimum. You DAI & Fred Deluca r the ones making money.
I wish I never got into Subway, I hate this company, I don’t have long to live according to my Doctors, thanks directly to the stress subway world headquarters, their arbitrators, their inspectors n their little spools that come in at busy lunch time with their laptops, praise u verbally, but are required to write you out of compliance. That is a fact… They r trained to do that…set u up. Just ask any ex-inspector.
…They have ruined my family life my health and are destroying, annihilating my stores knowing im to weak to fight back, so, here it is. No retirement, no health insurance because we are self employed & due to the stress from Subway the doctors concur i have less then 1 year to life.
So hey Fred, see u in hell, u cant n wont take it with you, you lousy ba$tard. Your no italian, your a pig! Keep having your little spies do their thing, your gonna rit in he’ll for what you have done to franchisees and the deception to the customers. Hey, why don’t you shove one of those $5.00 subs up your arse.
Also those defending Subway. They are liars. They are totally lying. In the name of God & all that is Holy, they are lying. subway ownership is hell on earth. No wonder we look like nazi concentration camp survivors, Mussolini is back & his name is Fred Deluca.
Dr. Gus wrote
Our DA Office has clearly demonstrated unethical behavior for years.
What has been demonstrated so far to our local area franchisees, is that the DA Office and Subway Corporate are the "same entitiy".Some franchisees value integrity and honesty far above money. Those few will not stay once they experience the unethical behavior.
The rest who compromise their values for the money, will stay, and will stay quiet about it.
This is just a microcosm of what America at large has come to recently exceedingly suffer from. Excessive greed, above all else.
Jim Eddie wrote:
My wife and I owned a Subway in 1993. Once a week we still talk about the misery we suffered. It sounds like things got even worse since then. I always had a feeling the success of the company was on the back of the hard work of store owners. We only owned the store for less than a year and it was the worse year of our life. I do feel the whole subway system is a scam and if you already own one, it’s too late but if you are thinking of buying one speak to current owners. If they are honest, they will talk you out of it.
What do you think? Are the accolades of Subway as a top franchise deserved?
Does Subway franchise provide the training, support, marketing and systems it promises?
Are Subway and founder Fred DeLuca genuinely dedicated to the success of their franchise owners?
Please share a comment, opinion or insight below.
Also read: SUBWAY: What Do Franchisees Make on $5 Footlongs?
Are SUBWAY Franchise Owners Happy?
SUBWAY: Send Jared to Gitmo! Parody Press Release
ARE YOU FAMILIAR WITH THE SUBWAY FRANCHISE? WHAT COMPLAINTS DO SUBWAY FRANCHISEES HAVE? PLEASE SHARE A COMMENT BELOW.
To contact the site admin, email UnhappyFranchisee[at]gmail.com.
HAMPTON HOTELS Franchise Complaints
January 24, 2012
Hampton Hotels franchise owners are invited to share their complaints, frustrations and advice with prospective franchise owners below.
UnhappyFranchisee.com believes that no franchise system is perfect, and that it benefits everyone when new franchisees sign on with realistic expectations and advance knowledge of the challenges and frustrations they may face.
Is Hampton Hotels Really the Best Franchise Opportunity?
The Hampton brand includes Hampton Inn, Hampton Inn & Suites, Hampton Inn by Hilton, Hampton Inn & Suites by Hilton and Hampton by Hilton, and is a leader in a the mid-priced hotel segment. With more than 1,800 properties globally, Hampton Hotels is part of Hilton Worldwide, the leading global hospitality company. All Hampton Hotels boast high-quality accommodations, in-room conveniences and the latest technology, and a satisfaction guarantee.
Hampton Hotels was named the #1 franchise in Entrepreneur magazine’s 2011 Franchise 500. (See the UnhappyFranchisee.com discussion here: Top 100 Franchise Opportunities 2011: Behind The Hype) and has now been named the #1 franchise in Entrepreneur magazine’s 2011 Franchise 500 as well.
Are the accolades well-deserved?
Does Hampton Hotels provide the training, support, marketing and systems it promises?
Is Hampton Hotels genuinely dedicated to the success of its franchise owners?
Please share a comment, opinion or insight below.
Also read: HAMPTON HOTELS Franchise Disclosure Document
ARE YOU FAMILIAR WITH THE HAMPTON HOTELS FRANCHISE? WHAT COMPLAINTS DO HAMPTON HOTELS FRANCHISEES HAVE? PLEASE SHARE A COMMENT BELOW.
To contact the site admin, email UnhappyFranchisee[at]gmail.com.
SERVPRO Franchise Complaints
January 24, 2012
SERVPRO Fire & Water – Cleanup & RestorationTM franchise owners: what don’t you like about your franchise experience?
What could be improved?
What do you know now that you wish you knew when you first became a franchise owner?
Please share a comment – positive or negative – below.
SERVPRO Franchise: Too Good to be True?
SERVPRO Fire & Water – Cleanup & RestorationTM franchise website claims that:
“SERVPRO has created the brand, system and support to help people from diversified educational, vocational and financial backgrounds take control of their own future and live the American Dream.
The SERVPRO Franchise opportunity allows you to take advantage of our proven track record while being in business for yourself, but not by yourself." (Source: Servpro website)
According to the SERVPRO franchise website, SERVPRO franchise owners are given the chance to control their own destinies, to “control your own destiny” and “redefine personal freedom”:
Control Your Own Destiny… Imagine having the time to do the things important to you. Imagine the chance to own a fully managed business. Imagine the opportunity to build your own future and change your family tree. The SERVPRO system affords you the opportunity to create wealth and build your family’s future…
If you’re ready to redefine personal freedom then SERVPRO is ready to help.
However, the Internet contains numerous and widespread complaints that the franchised ServPro company inflicts more damage than it mitigates.
These widespread complaints indicate that SERVPRO may have a negative brand image in the marketplace.
Read our post: SERVPRO: Is ServPro a Scam?
In fact, many consumers claim that they’ve been Servpro is a scam operation run by thieves.
On the Serv-pro reviews website, ezakimak10 wrote:
Servpro are scam artists! I could write a book about servpro and all the unethical practices they use. Tripling the quote they give you; Stealing items from your home; putting liens on your home; refusing to send you a detailed bill; Their tactics are criminal like just to say the least. I have no idea how our system allows them to survive by taking advantage of helpless people and also insurance fraud at its best.
What do you think of the SERVPRO Cleanup & Restoration franchise opportunity?
Is SERVPRO a franchise scam?
Does SERVPRO franchisees have to resort to overcharging, stealing and doing shoddy work to survive?
If not, why do you think they attract so many complaints?
Does SERVPRO provide the training, support and systems it promises?
Is SERVPRO genuinely dedicated to the success of its franchise owners?
Please share a comment, opinion or insight below.
ARE YOU FAMILIAR WITH THE SERVPRO FRANCHISE? WHAT COMPLAINTS DO SERVPRO FRANCHISEES HAVE? PLEASE SHARE A COMMENT BELOW.
To contact the site admin, email UnhappyFranchisee[at]gmail.com.
SERVPRO: Is ServPro a Scam?
January 24, 2012
SERVPRO Fire & Water – Cleanup & RestorationTM claims that:
“Whether you need emergency restoration or top-to-bottom home cleaning following fire, water or mold damage, you can trust your local SERVPRO Franchise Professional to make your house feel like home again. Our goal is to help you regain control to make your damage ‘Like it never even happened.’” (Source: Servpro website)
However, the Internet contains numerous and widespread complaints that the franchised ServPro company inflicts more damage than it mitigates.
In fact, many consumers claim that they’ve been Servpro is a scam operation run by thieves.
(Also read: SERVPRO Franchise Complaints)
On the Serv-pro reviews website, ezakimak10 wrote:
Servpro are scam artists! I could write a book about servpro and all the unethical practices they use. Tripling the quote they give you; Stealing items from your home; putting liens on your home; refusing to send you a detailed bill; Their tactics are criminal like just to say the least. I have no idea how our system allows them to survive by taking advantage of helpless people and also insurance fraud at its best.
3233 wrote:
What a scam company…Water damage due to ice maker break…Serv Pro recommended by insurance co and they came. Set up fans for a week -kept saying it was still wet and tore out ceiling etc.Wanted to come back to replace and when I told them I had a carpenter the manager became belligerent…. The bill was way over the top , not dated and not itemized. Insurance is fighting them…Wouldn’t call them to clean up dog’s mess.
Sadpro wrote:
Servpro have numerous violations listed with the better business bureau. They are at best a load of con men, crooks and liars. Do not use their ineffective and impotent services.
made wrote:
long story short- dont use serv pro
the bill was ridiculous! THEY COMPLETELY LIED ABOUT THE HOURS AND JOBS! it was after our house almost burnt down in a fire. amyways now we have an ongoing battle against the 10,000 DOLLAR BILL!
underconstruction wrote:
ServPro of Decatur/Forsyth was hired by my insurance company. They over charged thousands of dollars for work that would never need to be performed. Submitted a second estimate and intentially over charged again. Damaged thousands of dollars worth of my property and to my home. Refuses to return calls, refuses to complete the job they were paid to do and refuses to return the remaineder of my personal property. ServPro employee’s even stole items from my home when they were here.
Have you dealt with SERVPRO Cleanup & Restoration?
Is SERVPRO a scam? Does SERVPRO overcharge, steal and do shoddy work as so many claim?
If not, why do you think they attract so many complaints?
Is the company or its franchise owners and employees the problem?
Please share a comment, opinion or insight below.
ARE YOU FAMILIAR WITH SERVPRO? PLEASE SHARE A COMMENT BELOW.
To contact the site admin, email UnhappyFranchisee[at]gmail.com.
MATCO TOOLS: Unhappy Franchisee Launches RoboCall Campaign
January 16, 2012
Martin Luther King said “Our lives begin to end the day we become silent about things that matter.”
Unhappy Matco Tools franchisee Debbie Solko honored Reverend King’s birthday yesterday by letting freedom (and hundreds of telephones) ring.
Ms. Solko launched the first in a campaign of automated phone calls promoting awareness and participation of her nascent Matco Tools Distributor’s Association to current and former Matco Tools franchise owners.
Franchisee Protests Go Robo
The Sunday evening “robo-call” was the latest in a multi-prong, grassroots informational campaign by Ms. Solko (aka Lady Matco) and a vocal group of current and former Matco franchisees who complain that Matco Tools uses predatory and fraudulent business practices to recruit trusting franchisees, provide them with an inadequate customer base, and force them into make excessive inventory purchases they neither need nor can afford.
Franchisees complain that Matco Tools then terminates the struggling franchise owner, then resells the franchise to start the cycle all over again. (See MATCO TOOLS Franchise Complaints)
Debbie “Lady Matco” Solko’s message promotes several ways franchisees can take action, from learning more (by visiting UnhappyFranchisee.com), to joining the Matco Tools Franchisee Association (at LadyMatco.com) to attending their rally in Las Vegas at the end of February.
In the message, franchisee Solko states:
Stand by for a special announcement concerning Matco Tools.
For too long, Matco has unfairly treated its distributors. But with the formation of the Matco Tools Franchisee Association, all that is changing.
Please log on to www.LadyMatco.com and join. Simply enter your confidential contact information to receive regular updates and newsletters via email.
Learn about the latest lawsuits filed on your behalf at www.UnhappyFranchisee.com.
Join us in Las Vegas to protest Tool Expo and all the scams Matco uses to get you to buy more tools than you need or your cash flow can afford.
This is the year to get rid of the threat of termination based upon the use of the illegal National Purchase Average.
It’s also the year we make Matco live up to all of their contractual obligations, including giving us 325 tool-buying customers.
We’ve already had an effect on the recruiting efforts. Just Google “Matco” and see the impact for yourself.
We have everything to gain and nothing to lose.
From Lady Matco and the entire Matco Franchisee Association Team, see you in Vegas!
Click here LISTEN to the Matco Franchisee Association Automated Message.
Matco Tools Franchise Posts & Discussions
MATCO TOOLS Franchise Complaints June 8, 2011 (3000+ comments)
MATCO TOOLS: Franchisee Alleges Franchise Fraud (Video) January 4, 2012
MATCO TOOLS: Lady Matco Speaks Out (Video) January 1, 2012
MATCO TOOLS Franchise Defenders Speak Out December 7, 2011 (Comments defending Matco invited)
MATCO TOOLS Distributor Franchise December 7, 2011 (Overview with links)
MATCO TOOLS Franchise Report Alleges Distributor Churning November 29, 2011
MATCO TOOLS 2011 Franchise Disclosure Document (FDD) & Other Resources November 22, 2011
MATCO TOOLS Class Action Lawsuit, “Secret” Sales Projections November 22, 2011
FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud November 15, 2011
Failure Rates of the 10 Most Popular Franchises April 26, 2010
ARE YOU FAMILIAR WITH THE MATCO TOOLS FRANCHISE? WHAT DO YOU THINK? SHARE A COMMENT BELOW!
To contact the author and site admin, email UnhappyFranchisee[at]gmail.com
MATCO TOOLS Franchise Video Battle [UPDATED]
January 4, 2012
The MATCO TOOLS Franchise Information Video is narrated by Senior Vice President of Sales Tim Gilmore, and posted for public viewing by the company on YouTube.
It begins: “Hi. My name is Tim Gilmore, Vice President of Sales for Matco Tools in Stow, Ohio.
“Having started as a Matco Tools distributor over 20 years ago, I’m in a unique position to talk to you about an opportunity to become part of the Matco Tools franchise team.
“I want to give you a sense of who we are at Matco and a brief history of our unique business model…”
Matco Franchise Video Comes Under Fire
The original franchise sales video we posted here (and that had been promoted by Matco Tools on YouTube.com for over a year), came under fire by Matco franchise owners who claimed that it contained fraudulent claims by now-President Tim Gilmore about the success rates of franchises vs. independent businesses.
In the original video, Matco’s Tim Gilmore states that a “recent study” by the U.S. Department of Commerce proves that 91% of all franchises are successful.
Not only does that study not exist, claim unhappy franchisees, but Matco’s own SBA loan default rate is 37%.
Matco Tools franchisee Debbie Solko posted an angry response to Tim Gilmore’s claims in a homemade video (“Gilmore Lies”) she posted to YouTube.
Franchisee Debbie Solko Attacks Matco Tools Sales Claims as Lies
Within days of franchisee comments about the video on UnhappyFranchisee.com and an angry video posted on YouTube, Matco Tools took their franchise sales video offline.
Matco Tools Removes The Video from YouTube
Matco Tools Posts an Edited Version with Success Statistics Removed
A few days later, the video was replaced with a version that had the controversial statistics crudely edited out.
Watch the REVISED Matco Tools Franchise Information Video below:
UnhappyFranchisee.com has been host to a heated discussions and numerous complaints by current and former Matco Tools franchise owners who feel that Matco represents the nature and risk level of its franchise opportunity.
What do you think? Does Mr. Gilmore provide a factual and accurate picture of the Matco Tools franchise program and opportunity?
Matco Tools Franchise Posts & Discussions
MATCO TOOLS Franchise Complaints June 8, 2011 (3000+ comments)
MATCO TOOLS: Franchisee Alleges Franchise Fraud (Video) January 4, 2012
MATCO TOOLS: Lady Matco Speaks Out (Video) January 1, 2012
MATCO TOOLS Franchise Defenders Speak Out December 7, 2011 (Comments defending Matco invited)
MATCO TOOLS Distributor Franchise December 7, 2011 (Overview with links)
MATCO TOOLS Franchise Report Alleges Distributor Churning November 29, 2011
MATCO TOOLS 2011 Franchise Disclosure Document (FDD) & Other Resources November 22, 2011
MATCO TOOLS Class Action Lawsuit, “Secret” Sales Projections November 22, 2011
FRANCHISE LAWSUIT Alleges Matco Tools Scam, TD Bank Fraud November 15, 2011
Failure Rates of the 10 Most Popular Franchises April 26, 2010
ARE YOU FAMILIAR WITH THE MATCO TOOLS FRANCHISE DISTRIBUTOR PROGRAM? WHAT DO YOU THINK? SHARE A COMMENT BELOW!
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