USA MOBILE DRUG TESTING Franchise Complaints: CEO Joe Strom Responds
December 20, 2012
USA Mobile Drug Testing franchise CEO Joe Strom has provided a response to our two recent posts on the USAMDT franchise.
Our first post communicated some of the complaints we’ve received from USA Mobile Drug Testing franchise owners, and invited others to share their opinions, positive or negative:
USA MOBILE DRUG TESTING Franchise Complaints
Our second post contained a list of questions we posed to USA Mobile Drug Testing franchise CEO Joe Strom after we reviewed the USAMDT Franchise Disclosure Document (FDD).
USA MOBILE DRUG TESTING Franchise Questions for CEO Joe Strom
Mr. Strom was gracious enough to provide this reply to our inquiries:
We received your email and have viewed the postings about USAMDT on your website. We strongly disagree with the allegations and the conclusions that are clearly suggested in the postings.
We wholeheartedly believe in the USA Mobile Drug Testing business, the abilities of our franchisees, and our ability to work with and support our franchisees. We understand that the system’s success will depend on the success of our franchisees. To this end, USAMDT has made and continues to make substantial investment in our training programs, vendor relationships, service and support systems, marketing and brand recognition activities, and operating systems. These efforts take many forms. In some instances this involves improvements to our internal system, and in other instances, we team up with experienced consultants and vendors to bring additional value to the system. Another effort that we have proudly taken is to develop a franchisee advisory council and we actively work with its franchisee members to hear and respond to our franchisees’ concerns and suggestions.
[Pictured, left, USAMDT Founder & CEO Joe Strom. Photo source: USAMDT website]
As your website postings are anonymous, we do not know who may have made these comments or have any details or substance. We hope that the writer will approach us directly so that we may discuss and work towards a solution for their specific problems. As such, we do not respond to each anonymous claim or “Question” posed in the posting. We object to the use the phrase “fine print” to describe information in our Franchise Disclosure Document. “Fine print” implies that the information was in some way hidden or shielded from view – that is an entirely inaccurate description of information that we clearly included in our Franchise Disclosure Document.
Contrary to the statements in the posting, we have many growing and successful franchisees who are very happy with their investment choice and with our support. In fact, here’s a quote we recently received:
“My Family and I could not be happier with our choice and investment in USA Mobile Drug Testing, the training was exceptional and gave you a solid foundation for success, however some choose not to follow the training and it becomes very clear who they are quickly. We are growing at a fast rate and anticipate a tremendous 2013, Joe Strom and all of his staff are working hard to deliver the best franchise support team they can which will make this a franchise force for years to come.”
Remember success comes from what you put into it, no franchise will work unless you follow the model……. Dale Dugas, CPC, President, USA Mobile Drug Testing of Southeast Texas
We are not perfect, but we are committed to supporting our franchisees. We will continue to improve our system, and we understand that the system’s success will depend on the success of our franchisees.
Sincerely,
Joe Strom
CEO of USA Mobile Drug Testing, LLC
ARE YOU A USA MOBILE DRUG TESTING FRANCHISE OWNER, EXECUTIVE, EMPLOYEE OR CLIENT? ARE YOU FAMILIAR WITH THE USA MOBILE DRUG TESTING FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Tags: USA Mobile Drug Testing, USA Mobile Drug Testing franchise, USA Mobile Drug Testing complaints, USA Mobile Drug Testing franchise complaints, USA Mobile Drug Testing failure rate, drug testing franchise, mobile drug testing, Joseph Strom, Joe Strom
STRATUS BUILDING SOLUTIONS Dropped From Entrepreneur’s Franchise 500
December 18, 2012
Stratus Building Solutions has been the darling of franchise hype-machine Entrepreneur magazine in recent years.
In the 2012 33rd Annual Franchise 500 list, Entrepreneur ranked the janitorial franchise #12 among ALL franchises.
(UnhappyFranchisee.Com) Yes, Entrepreneur ranked (what some have called) a thinly veiled Ponzi scheme out of St. Louis right up there with McDonald’s, Hampton Hotels, Pizza Hut and Subway.
It ranked the little-known Stratus higher such household names as KFC, Dairy Queen, Hardee’s, and Papa John’s to name a few.
In fact, in 2012, Entrepreneur positioned Stratus Building Solutions as the only top franchise that most people could afford.
Less than a year later, Stratus Building Solutions no longer appears on Entrepreneur’s Franchise 500.
What happened?
Entrepreneur Has Unashamedly Promoted the Stratus Franchise Scheme
Bad franchise companies like Stratus Building Solutions rely on seemingly legitimate publications like Entrepreneur to provide them with the phony credibility they need to sell lots of franchises.
Here’s the list of accolades Entrepreneur has heaped on Stratus Building Solutions since 2009 [source: Entrepreneur.Com]:
Franchise Ranking History [Stratus Building Solutions]
Franchise 500®: #12 (2012), #20 (2011), #13 (2010), #38 (2009),
Fastest-Growing: #1 (2012), #1 (2011), #3 (2010), #4 (2009),
Low-Cost: #2 (2012), #5 (2011), #5 (2010), #7 (2009),
Top New: #1 (2010), #3 (2009),
Top Home-Based: #2 (2012), #6 (2011), #4 (2010), #6 (2009),
America’s Top Global: #11 (2012), #18 (2011), #11 (2010), #33 (2009),
In addition, Entrepreneur has published the unsubstantiated and highly unlikely claim that Stratus Building Solutions had 5,131 franchises in 2011.
In court documents, Stratus execs didn’t claim anywhere near that number. Where did Entrepreneur get its inflated numbers?
UnhappyFranchisee.Com Protested Stratus’s Franchise 500 Ranking
Since May, 2012, UnhappyFranchisee.com has been urging Entrepreneur to stop promoting the Stratus Building Solutions franchise in their widely publicized rankings.
We sent them a detailed letter documenting the damage Entrepreneur was doing by promoting this troubled and troubling franchise:
STRATUS BUILDING SOLUTIONS: Should Entrepreneur De-List Stratus From the Franchise 500?
We sent them links to the myriad horror stories and lawsuits caused by Stratus Building Solutions:
STRATUS BUILDING SOLUTIONS Franchise Complaints
STRATUS BUILDING SOLUTIONS: Goldeneye Holdings v. Stratus Franchising Lawsuit May 30, 2012
STRATUS BUILDING SOLUTIONS: Franchisees v.Goldeneye Holdings Lawsuit May 29, 2012
STRATUS BUILDING SOLUTIONS: Open Letter From Unit Franchisees May 23, 2012
STRATUS Franchise: Are Stratus Master Franchisees Jumping Ship? May 18, 2012
STRATUS Franchise Called “Pyramid Scheme” on FOX News May 10, 2012
STRATUS BUILDING SOLUTIONS Franchise is a Scam, Attorney Claims March 6, 2012
LA FRANQUICIA DE STRATUS es una Estafa, Acuerdoa Abogado March 6, 2012
STRATUS BUILDING SOLUTIONS Franchise Class Action Lawsuit Filed August 13, 2011
STRATUS BUILDING SOLUTIONS Franchise: Are Stratus Franchisees Successful? November 9, 2011
STRATUS BUILDING SOLUTIONS Franchise Lawsuits Ahead? February 1, 2012
STRATUS BUILDING SOLUTIONS: Markeeta Rivera’s Franchise Horror Story February 1, 2012
STRATUS BUILDING SOLUTIONS Franchise: Guadalupe Clemente’s Horror Story February 2, 2012
We tried to appeal to Editor-in-Chief Amy C. Cosper and President Ryan Shea by sharing comments like this one:
Zurab Kvantrishvili Submitted on 2012/06/07 at 9:39 pm
Before I bought this franchise I researched information everywhere, and one of the reason we paid $17 000 for it was that Entrepreneur ranking. If Stratus didn’t had such a high ranking I would never trusted them with all my life savings. When I spoke to John Coleman (one of the master Franchisor in Philadelphia Stratus Building Solution) and asked him to return my money back or I would take him to the court, he laughed at my face and this is his exact words: ”Please, who’s going to believe you? we are ranked as number #1 cleaning franchise by entrepreneur nationwide. You will waste more money on the lawyer” . I really want to believe that Entrepreneur will take Stratus Building Solution out of their ranking. Please, don’t let them scam more hard working people!
None of that swayed Editor Amy Cosper or President Ryan Shea from continuing to promote this toxic franchise opportunity for another 7 months.
Amy Cosper responded:
We have looked into this and until Stratus Building Solutions is found guilty in a court of law, we will not be de-listing them. Also, please note disclaimers throughout the listing.
Thank you for your feedback.
Amy Cosper VP/Editor in chief
Entrepreneur President Ryan Shea wrote:
We publish the franchise 500 Rankings every year in January so we will take the lawsuits against them into account when we calculate and create our 2013 Franchise 500 rankings.
So the collapsing Stratus Building Solutions got to enjoy another 7 months as Entrepreneur’s 12th highest ranked franchise, even as its Master Franchisees fled the system and shed the Stratus name like a snake sheds its skin.
Stratus Building Solutions is MIA From the 2013 Franchise 500.
So did Entrepreneur finally do the responsible thing and remove Stratus Building Solutions from its Franchise 500 rankings?
Or was Stratus Building Solutions too exhausted from fighting lawsuits and waving goodbye to its Master Franchisees to submit the necessary paperwork?
We asked Entrepreneur President Ryan Shea, who replied:
We are not going to comment either way.
Ryan Shea , President, Entrepreneur Media, Inc.
Actually, we don’t blame Ryan for not answering.
If word ever got around that Entrepreneur was starting to penalize franchisors simply because their franchisees were failing, that lawsuits were flying, and their Master Franchisees were de-branding and walking away from their investments in disgust, Mr. Shea might risk offending a very lucrative and highly valued segment of Entrepreneur advertisers.
Without them, he might have to rename his big moneymaker the Entrepreneur Franchise 75.
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Tags: Entrepreneur magazine, Entrepreneur 500, Franchise 500, Amy Cosper, Ryan Shea, Stratus Building Solutions, Stratus franchise, janitorial franchise, franchise scam, franchise lawsuits, unhappy franchisee
TULSA WORLD: Intentionally Deceptive or Exceedingly Lazy?
December 17, 2012
Tulsa World, it seems to us, routinely publishes company-submitted press release content as its own, original content.
In our opinion, Tulsa World not only fails to fact-check, proofread or verify the accuracy of the press release content it publishes, its staff continues to reprint the same false and deceptive statements even after they have been provided with proof of their inaccuracy.
In the opinion of UnhappyFranchisee.Com, Tulsa World just doesn’t seem to care about journalistic ethics nor providing its reader with accurate information.
We’re not sure whether Tulsa World and its business editor, John Stancavage, are intentionally deceptive, exceedingly lazy, or both.
Tulsa World: Perpetuating the Beautiful Brands Success Myth Since 2003
In a November 25, 2012 column supposedly written by World Staff Writer Laurie Winslow, Tulsa World credited Beautiful Brands International with developing and successfully launching a list of “worldwide, franchised brands” that included Camille’s Sidewalk Café, Rex’s Chicken, Ludger’s Bavarian Cakery, Roxberry Juice Co., Smallcakes A Cupcakery, MyCamille’s and Hard Knox Pizzeria.
On December 12, 2012, UnhappyFranchisee.Com wrote to both writer Laurie Winslow and Tulsa World Business Editor John Stancavage to inform them that these are in no way “worldwide, franchised brands.”
In fact, Ludger’s Bavarian Cakery and Hard Knox Pizzeria are single-unit shops with no franchises.
Rex’s Chicken has 2 locations.
Roxberry Juice Co. and Smallcakes A Cupcakery each have 8 domestic locations.
MyCamille’s is not even a business; It appears to be the name of the Camille’s Café franchisee intranet.
And Camille’s Sidewalk Café, long touted as a success story by Tulsa World, is down to 32 domestic locations… having closed more than 70 franchises in recent years.
(In 2003, Tulsa World stated that BBI’s founders are “focused on opening more than 600 [Camille’s] franchises coast to coast by the end of 2004” and that they “have 135 franchises in different stages of development.” As far as we can tell, the founders opened no more than about 106 Camille’s franchises and most of them have failed.)
Despite this correction, on December 16, 2012, Tulsa World again published a BBI press release as original content, including BBI’s list of “worldwide, franchised brands” that included Camille’s Sidewalk Café, Rex’s Chicken, Ludger’s Bavarian Cakery, Roxberry Juice Co., Smallcakes A Cupcakery, MyCamille’s and Hard Knox Pizzeria.
This time they added a new “worldwide, franchised brand” to the list: NYPD Pizzeria.
Tulsa World failed to mention that NYPD Pizzeria is not worldwide (it does not have a single international location), was founded by a convicted con-artist now serving time in Federal prison, or that the NYPD Pizzeria has closed 60% of its locations in recent years.
Tulsa World: intentionally deceptive, exceedingly lazy, or both?
The Case for “Intentionally Deceptive”
On November 18, 2012, staff writer Laurie Winslow wrote the headline “BBI to franchise coffee and tea concept at Camille’s.”
Ms. Winslow seemed to be bending over backward to give the impression that BBI is now franchising the international Coffee Bean & Tea Leaf concept.
The truth is that a single, local Camille’s location is brewing Coffee Bean & Tea Leaf coffee (through a Keurig system, according to one source) and maybe retailing a few Coffee Bean branded products as a test.
BBI is clearly not “franchising” the Coffee Bean & Tea Leaf “concept” as Ms. Winslow states. Could such an obvious deception not be intentional?
The Case for “Exceedingly Lazy”
Tulsa World, it seems, even plagiarizes typographical errors.
In its December 16, 2012 “FYI Business” section under the headline “FreshBerry expands in Middle East, Venezuela,” Tulsa World staff supposedly wrote “Rutkauskas said he hopes to continue the incredible growth of the FreshBerry brand with eight more stores openings…” [sic Emphasis ours]
16 days earlier, on November 30, 2012, QSR magazine published the same text in its story: “Rutkauskas said he hopes to continue the incredible growth of the FreshBerry brand with eight more stores openings…” [sic Emphasis ours]
Even the typo “eight more stores openings” was apparently plagiarized from a BBI press release without attribution.
So not only does it appear that Tulsa World is too lazy to do its own writing, but it’s too lazy to proofread as well.
Should Tulsa World Fire Laurie Winslow? John Stancavage?
On July 12, 2011, The Kansas City (Mo.) Star fired its longtime metro columnist, Steve Penn, for doing what it appears Tulsa World’s Laurie Winslow is doing on a regular basis: publishing press releases verbatim in a bylined column.
According to Allan Wolper, a professor of journalism at Rutgers University, “last July, Penn fired back, filing his suit against the Star and corporate owner, McClatchy Newspapers, Inc., alleging his editors knew all about his pilfering and that plagiarizing press releases was common practice at the paper.”
The Kansas City (Mo.) Star adamantly denies Penn’s claim. Such an admission would damage the reputation and call into question the integrity of the newspaper.
In a recent article entitled Ethics Corner: The News Hole Is No Place For PR Copy, Professor Wolper wrote:
Lifting press releases verbatim and publishing them without attribution is a sin against readers. It is a violation of the public trust that media love to talk about. It gives the impression that the paper is not an independent voice. It calls into question every other story in the paper.
It appears undeniable that Tulsa World writers and editors are publishing the press releases of BBI (Beautiful Brands International) verbatim. If you Google a quote or key phrase from the stories linked to above, you will likely see up to a dozen websites (like Yahoo News, QSR, Fast Casual) that have published the same story, using the same text, same executive quotes, same unverified sales figures, etc. as Tulsa World.
The question is: Does Tulsa World and parent World Publishing, Inc. care that its publication is being used as a press release mill and propaganda pipeline by questionable companies, or is that practice in accordance with the World Publishing Code of Ethics?
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USA MOBILE DRUG TESTING Franchise Questions for CEO Joe Strom
December 16, 2012
USA MOBILE DRUG TESTING’s Franchise Disclosure Document for 2012 provides a Financial Performance Representation to prospective franchise owners.
The representation is used by USA Mobile Drug Testing franchise salesmen and franchise brokers to help convince prospective franchisees to invest $80,000 to $120,000 in a USAMDT franchise.
[Also read: USA MOBILE DRUG TESTING Franchise Complaints]
The Financial Performance Representation states that between January 1, 2011 – December 31, 2011, the USA Mobile Drug Testing location in New Haven, CT achieved the following financial results:
| A&B Employer Solutions Revenue: | |
| Total Revenue |
$329,225.40 |
| Total Expenses |
$194.186.30 |
| Income |
$155, 039.10 |
Is USAMDT & CEO Joe Strom Intentionally Deceiving Prospective Franchisees?
The Financial Representation provided in the 2012 FDD makes the USAMDT franchise seem like a pretty profitable opportunity.
[Read it here: USAMDT 2012 FDD redlined]
Why, then, did 30% of its franchises disappear in the past year?
(See USA MOBILE DRUG TESTING Franchise Complaints)
It didn’t add up, so we looked a little closer at the fine print.
Here’s what we found:
The New Haven, CT business used for the Financial Performance Representation is NOT a USA Mobile Drug Testing franchise, but is actually A&B Employer Solutions, Inc. (“A&B”), which operates its drug testing business as an add-on to an existing, previous business.
The A&B Employer Solutions, Inc. website states “Headquarters for A&B Employer Solutions are located in New Haven, CT., however, services are provided nationwide.”
The USAMDT FDD states: “We do not know the extent to which this operator provides products or services outside of his territory, or the portion of its revenues that are derived from outside of the territory.”
So the $329,225.40 revenue number could include sales to existing A&B Employer Solutions clients and/or drug testing clients throughout the nation.
As new USA Mobile Drug Testing franchise owners would have neither an existing client base nor the ability to market outside their local area, the $329,225.40 could be highly misleading.
Additionally, A&B Employer Solutions, Inc. paid no royalties, ad fund contributions or other required expenses that a new franchisee would incur.
A&B Employer Solutions, Inc. did not have to pay the Roll-out Advertising of $10,500 for its first three months.
A&B Employer Solutions, Inc. did not have to pay a $49,900 franchise fee, as the new franchisee will.
A&B Employer Solutions, Inc. did not have to pay a 9% royalties on its gross sales, which would be $29,630.
So it seems that the Financial Performance Representation provided by USA Mobile Drug Testing could be substantially overstating revenue and understating the expenses a new franchisee could realistically expect.
Questions for CEO Joe Strom regarding the USA Mobile Drug Testing franchise opportunity
UnhappyFranchisee.Com has a number of questions for USA Mobile Drug Testing, LLC CEO Joe Strom.
1) USAMDT operated a company-owned location from June, 2010 through April, 2011 in Tampa, FL. What were the sales achieved by USAMDT in its home market? Why not use the Tampa revenue numbers as the Financial Performance Representation?
2) Have any USA Mobile Drug Testing franchise owners achieved $330,000+ in sales? If not, why are you providing this representation in your FDD?
3) Did A&B Employer Solutions, Inc. receive compensation of any kind for allowing its sales numbers to be used in the marketing of USAMDT franchises?
4) Why did A&B Employer Solutions, Inc. sever its relationship with USAMDT shortly after signing a franchise agreement? Is USA Mobile Drug Testing, LLC pursuing legal remedies against A&B Employer Solutions, Inc. for breaking its franchise agreement?
5) According to Entrepreneur magazine, the number of USA Mobile Drug Testing franchises dropped 30% from 77 in 2011 to 52 in 2012. What accounts for the loss of 25 franchised locations?
6) According to our sources, more than 25% of the remaining franchisees wish to close or leave the system. What is causing this franchisee dissatisfaction, and what is USA Mobile Drug Testing, LLC doing to reverse this downward spiral?
7) Do you think that selling the USA Mobile Drug Testing franchise using the A&B Employer Solutions, Inc. numbers and calling it a “lower-risk” opportunity (despite an apparent failure rate of 30% and climbing) is ethical and aboveboard?
ARE YOU A USA MOBILE DRUG TESTING FRANCHISE OWNER, EXECUTIVE, EMPLOYEE OR CLIENT? ARE YOU FAMILIAR WITH THE USA MOBILE DRUG TESTING FRANCHISE OPPORTUNITY? PLEASE SHARE A COMMENT BELOW.
Tags: USA Mobile Drug Testing, USA Mobile Drug Testing franchise, USA Mobile Drug Testing complaints, USA Mobile Drug Testing franchise complaints, USA Mobile Drug Testing failure rate, drug testing franchise, mobile drug testing, Joseph Strom, Joe Strom, Franchise Disclosure Document, FDD
USA MOBILE DRUG TESTING Franchise Complaints
December 16, 2012
USA MOBILE DRUG TESTING Franchise Complaints include a reportedly high failure rate, widespread franchisee discontent, and a lack of knowledgeable, capable franchise support staff at the franchisor home office.
Are you familiar with the USA MOBILE DRUG TESTING Franchise Opportunity? Please share a comment below.
(UnhappyFranchisee.Com) USA Mobile Drug Testing was founded in 2008, and is based in Tampa, FL.
The USA Mobile Drug Testing franchise website claims that their franchise offers the tools for building a successful random drug testing service business that you can run from home.
[Also read: USA MOBILE DRUG TESTING Franchise Questions for CEO Joe Strom]
It states: “Owning a USAMDT Franchise offers most of the benefits of business ownership but provides important additional elements to help one succeed, such as a proven business model, comprehensive training, marketing expertise, and ongoing support. In addition, a nationally recognized brand and trademark provides instant consumer visibility and credibility.”
Like many brand-new, high-risk franchise opportunities with virtually no proven track record, USA Mobile Drug Testing markets itself as a lower-risk investment, stating:
“USAMDT Franchising provides many of the benefits of business ownership – the ability to make decisions and have control, to create wealth for the present and equity for the future; but is considered less risky than starting your own business.”
Is The USA Mobile Drug Testing Franchise a Flash in the Pan?
According to information submitted to Entrepreneur magazine, USA Mobile Drug Testing grew 600% in one year, from 11 franchises in 2010 to 77 franchises in 2011.
The following year, the number of USA Mobile Drug Testing franchises dropped 30% to just 52 franchises.
What happened to the 25 franchisees who thought they were taking a “less risky” path to business ownership and were told they could “Just get in your vehicle and make money?
Did they lose their investments of $83,731 – $115,611 in just one year?
Of 40 Remaining Franchisees, “Over 25% Are Looking to Get Out or Close”
UnhappyFranchisee.Com has received a complaint from an unnamed USA Mobile Drug Testing franchise owner who claims the situation is actually even worse than it seems.
He/she claims that the system is in a state of collapse, that there is no franchise support, and many franchisees are looking for a way out.
A USA Mobile Drug Testing franchise owner writes:
Of the 40 remaining franchisees, over 25% are looking to get out or close because they are out of money, no longer want to send their money to the ZOR, there is no support, no structure or system and all of the knowledgeable employees at HQ are now gone.
We have contacted the corporate office of USA Mobile Drug Testing franchise about these concerns, and invite their clarification, correction or rebuttal.
ARE YOU A USA MOBILE DRUG TESTING FRANCHISE OWNER, EXECUTIVE, EMPLOYEE OR CLIENT?
ARE YOU FAMILIAR WITH THE USA MOBILE DRUG TESTING FRANCHISE OPPORTUNITY?
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Tags: USA Mobile Drug Testing, USA Mobile Drug Testing franchise, USA Mobile Drug Testing complaints, USA Mobile Drug Testing franchise complaints, USA Mobile Drug Testing failure rate, drug testing franchise, mobile drug testing, Joseph Strom, Joe Strom
BEAUTIFUL BRANDS Franchisee Questions for David Rutkauskas
December 13, 2012
David Rutkauskas, CEO of Beautiful Brands International (BBI), franchisor of Camille’s Sidewalk Café, Freshberry Frozen Yogurt, and reseller of several partner franchise brands, is supposed to be interviewed by Tulsa World retail reporter Kyle Nelson this week.
To help Mr. Nelson prepare an insightful and hard-hitting interview, UnhappyFranchisee.Com invited former Camille’s Sidewalk Café franchise owners to provide questions they would like to see David Rutkauskas answer.
We were inundated with tough questions for David Rutkauskas, and we couldn’t help but add a few of our own. Here are the questions we’ve provided to Kyle Nelson and his business editor John Stancavage, though Mr. Rutkauskas is welcome to answer them directly in the comment box below.
Camille’s Franchise Sales Strategy & Practices Questions for David Rutkauskas
- When Franchisees attended the Discovery Day sales presentation, did BBI flood the area with heavy discounted coupons to make the restaurants look busier than they normally were?
- “When we visited BBI to be ‘approved’ as franchisees, David showed us a map with several hundred colored pins on it, telling us these were restaurants “under development.” In reality, these pins represented nothing more than franchisee commitments, required by David in order to buy a franchise. We were required to buy multiple locations, only one of which was ‘under development.’ I would like David to be asked why he intentionally misled franchisees to believe all these restaurants were under development when , in fact, they were not.”
- Related question: In 2008, it was reported that nearly 900 Camille’s franchises had been sold. Why did Beautiful Brands require payment for hundreds of stores that never opened? Did you ever offer these franchisees a refund for unopened stores?
- What was the need to sell multiple franchises to individuals in distant markets before knowing if Camille’s would be successful outside Tulsa?
- What was the purpose of expanding nationally in such a short time before testing different markets to determine their likelihood of success?
- By expanding so rapidly and broadly (and not clustering units) how did you anticipate negotiating food contracts that would allow the franchisees in remote markets to remain solvent?
- Why did you continue to sell franchises when the current franchisees were failing?
- When was the last time a new Camille’s opened in the US?
- Why did you expand to franchise multiple brands when one was already failing? Why not concentrate on one brand and make it successful rather than sell franchises for additional questionable and unproven enterprises?
Camille’s Franchisee Support Questions for David Rutkauskas
- How often does Beautiful Brands visit each Camille’s store for onsite visits and coaching?
- Why doesn’t Beautiful Brands have franchisee meetings, a convention or ongoing training?
- Does Beautiful Brands provide any accounting of how franchisees’ Ad Fund dollars are spent?
- Why is there no “quality control” or no enforcement team overseeing franchise operations to ensure operators are abiding by approved procedures and maintaining quality operations? I’ve seen none of this.
- When your national distributor (US Foods) does not service a particular franchisee’s market, what alternative arrangement does Beautiful Brands make for the franchisee? Or is that franchisee left to source food and supplies locally on their own?
- When most of the franchises were failing in the Midwest, why didn’t you personally visit these or send a representative to determine the cause of failure?
- How were you planning on monitoring and offering cost effective products and foods to franchises a thousand miles away?
- When franchises were struggling for survival, did you offer any temporary relief?
Beautiful Brands Franchise Failure Rate Questions for David Rutkauskas
- Can you name 5 franchisees who have made real money from Camille’s or any of your other brands?
- You claimed that you sold 14 Coney Beach franchises before even opening the first one. When the Coney Beach franchise flopped and was discontinued, did you offer these 14 their money back?
- Why do you refer to Camille’s Sidewalk Café as a success story when more franchises closed than remained open, when the SBA lists your franchisee default rate as one of the highest in the country, and when hundreds of franchises that were paid for never opened?
- Did Beautiful Brands sell a Freshberry franchise in Grand Rapids, then sell 2 competing CherryBerry frozen yogurt franchises to directly compete with her in the same market?
- How do you sleep at night?
Beautiful Brands Legal Threats and Intimidation Questions for David Rutkauskas
- Is it true that you preach openness and transparency on your blog, but when former franchisees shared their experiences with Beautiful Brands on UnhappyFranchisee.Com, you had your attorney send them threatening legal letters?
- Has Beautiful Brands prohibited and even threatened legal action if Camille’s franchisees organize or convene meetings amongst themselves?
- Are Camille’s Sidewalk Café and other BBI franchisees prohibited from forming an independent franchisee association?
- Are former Beautiful Brands partners free to share their opinions of or experiences with the BBI partnership program?
Beautiful Brands Partnership Program Questions for David Rutkauskas
- How much do franchise companies pay to be Beautiful Brands partners? What do they receive for that investment?
- Have any of the current BBI partners (such as Ludger’s Bavarian Cakery, CherryBerry Self-Serve Yogurt Bar, Roxberry Juice Co., Smallcakes A Cupcakery, Hard Knox Pizzeria, Fresco Italian Kitchen, Yard Sheriff) expressed a desire to have their brands removed from the BBI portfolio?
- There seem to be more “former” BBI partners than “current” BBI partners. Why is that? Does BBI sell “partner” companies on franchising when they are not suited or not ready for franchising?
- Why is Blazing Onion Burger Company no longer a BBI partner? You wrote that you decided to franchise it in 2010, but their website lists 5 locations and no mention of franchising or BBI.
- Why are The Bread and Butter Bistro, The Crusty Croissant Bakery & Café, and Le Beau Rouleau Crepes and Croissants no longer BBI partners? Are they still in business? Were they the same company, listed as three different partners?
- Why is Caz’s Chowhouse no longer a BBI partner? Their website lists a single location and no mention of franchising.
- Why is Café Ole no longer a BBI partner? They have 1 location listed on FB and no mention of franchising.
- Why is Dixie Cream Donut Co. no longer a BBI partner? Their website lists no US locations and a few in the Middle East.
- Why is Greenz Salads no longer a BBI partner? They seem to have the same 3 locations they did when they first partnered with BBI.
- Why is In the Raw Sushi no longer a BBI partner? They have 4 locations and appear to be franchising, but not with BBI.
- Why is Kyro Pizza no longer a BBI partner? They have 1 location and are offering franchises, but not with BBI.
- Why is St. Michaels Alley no longer a BBI partner? Their website lists a single location and no mention of franchising.
- Why is Sonny Bryan’s Smokehouse no longer a BBI partner? They have 11 locations in Texas and Utah and are franchising without BBI.
- Why is Sushi Freak no longer a BBI partner? In February, 2012, BBI claimed via QSR “Sushi Freak is poised to expand rapidly and sign at least 100 franchise agreements in the first nine months of 2012. BBI expects 50 stores open and operating by the end of the first quarter 2013.” The Sushi Freak website lists one (1) location and they seem to have dumped BBI as a partner.
- Why is Top That! Pizza no longer a BBI partner? In January, 2011, BBI claimed it signed a “200-unit, three-state deal,” which David Rutkauskas characterized as “a landmark accomplishment for our company.” Two years later, Top That! Pizza has only 9 locations and seems to be disavowing any connection with Beautiful Brands International.
- Is it true that the newest BBI partner, NYPD Pizzeria, was founded by conman Lou Pearlman who is in a federal prison for perpetrating the largest Ponzi scheme in Florida’s history? Why did you state that NYPD Pizza has the “perfect formula for franchise success,” when the franchise chain has shrunk nearly 60% since 2008?
ARE YOU A BEAUTIFUL BRANDS INTERNATIONAL FRANCHISE OWNER OR FRANCHISE PARTNER? ARE YOU FAMILIAR WITH BEAUTIFUL BRANDS INTERNATIONAL (BBI)? PLEASE SHARE A COMMENT BELOW.
BEAUTIFUL BRANDS Letter to Tulsa World Writer Kyle Arnold
December 13, 2012
Beautiful Brands Chairman & CEO David Rutkauskas is being interviewed by Tulsa World retail reporter Kyle Arnold this week, we’ve been told.
UnhappyFranchisee.Com was notified of this at the last minute by Tulsa World Business Editor John Stancavage:
“We are going to do the Rutkauskas interview this week. This is your opportunity to be heard and be a part of this story. So, we need to hear from you, on the record, soon.”
This is the first we’ve heard from John Stancavage since we emailed him objections to Tulsa World’s printing of Beautiful Brands International (BBI) deceptive and misleading (in our un-humble opinion) press releases as bylined articles, without verification or fact checking.
Stancavage continued to publish BBI propaganda verbatim even after we sent him and one of his business writers proof that what they were printing was inaccurate.
This week, John Stancavage sent a terse email saying that if we want to have input to the story, we need to go on the record with an interviewee name and full contact information. Doesn’t matter to Stancavage that BBI sics their pit-bull attorneys on anyone who criticizes under their real name, evidently.
One anonymous source has told us that John Stancavage is good buddies with (or at the very least has a man-crush on) David Rutkauskas. So, thanks, Mr. Stancavage, but no thanks. But nice try.
However, we did provide “retail reporter” Kyle Arnold with enough info to do some actual reporting in the unlikely event that Tulsa World wants to take a momentary break from press release republishing and take a stab at actual journalism.
Here’s our letter (email) to Kyle Arnold, which we CCed to John Stancavage:
Kyle:
I am the publisher of a franchise insider website called UnhappyFranchisee.Com.
We have been critical of TulsaWorld.com for continuing to promote Beautiful Brands and its franchised brands as a success story when the facts indicate that Beautiful Brands has created many more failing or doomed businesses than successes. Despite the failures and pleas from failing franchisees for assistance, BBI continues to sell franchises and expansion “partnerships” without acknowledging the personal and financial devastation left in their wake. Up til now, Tulsa World has helped to create and maintain the illusion of BBI success.
Your editor John Stancavage has said that you are researching a story that will finally tell the truth about BBI, and that you are going to interview David R. Given Tulsa World’s past infatuation/collusion with BBI, we are skeptical but hopeful you will do real reporting and tell the truth about BBI’s track record. We also hope that you will give due credit to UnhappyFranchisee.Com for publishing franchise facts and franchisee grievances so people my read our posts for more info on BBI.
BBI makes money selling two types of dreams: Franchise Opportunities to those dream of owning their own businesses, and Partnership Opportunities to those who dream of building a national franchise system with BBI’s help. As we understand it, BBI generates income for themselves whether these dreamers fail or succeed.. and most fail or never open the franchises they paid for.
Yet publications like Tulsa World (so far) continue to promote the illusion that those who invest their life savings with BBI are joining a winning team, a success factory (despite obvious evidence to the contrary).
Please see:
BEAUTIFUL BRANDS Franchise Complaints
CAMILLE’S SIDEWALK CAFE Franchise Complaints (See the comments posted under it from unhappy franchisees)
We reported the facts, from BBI’s own documents:
“In 2007, Beautiful Brands claimed that it had 100 Camille’s Sidewalk Cafés open and “more than 800 franchise agreements worldwide.”
The Camille’s Sidewalk Café 2011 Franchise Disclosure Document (FDD) indicates that in the beginning of 2008 there were 81 Camille’s franchises open in the U.S..
By the end of 2010, that number had dropped to just 41 U.S. franchises.
As of June, 2012, there are 32 Camille’s U.S. locations listed on their website. The Camille’s U.S. franchise network has shrunk 60% since 2008.”
In 2008, Beautiful Brands claimed it had sold 800+ Camille’s franchises. In 2012, Camille’s website lists 32 open locations.
According to a Tulsa World article in 2008:
“Rutkauskas is founder and CEO of Beautiful Brands International, which operates franchises that include Camille’s Sidewalk Cafe. Camille’s alone has nearly 900 locations in development worldwide, according to the company’s Web site.”
Kyle, in franchising, the term “in development” means that someone has paid a fee for the rights to develop a given franchise. That would indicate that BBI collected fees for nearly 900 Camille’s franchises, yet only 32 are still open. BBI collected fees for nearly 869 franchises, 800 of which appear to never have opened with the balance having opened and closed. The question to ask is, is BBI’s real business selling dreams that never come to fruition?
Adding credence to the suspicion that BBI is simply interested in collecting franchise fees no matter what the outcome is the fact that BBI pre-sold 14 Coney Beach franchises before they even tested the business. Coney Beach failed dismally, and your publication quoted BBI founder David Rutkauskas admitting to doing no research into hot dog consumption before selling the untested hot dog franchise. He told Tulsa World “I don’t think we realized that people don’t eat hot dogs three times a week.”
Ask David if those 14 were repaid their franchise fees. We know of a franchisee complaining that they were stuck with their worthless franchise rights to 2 Coney Beaches. It appears BBI sold an untested concept, took money for it, abandoned the concept, yet kept the money.
Why does Tulsa World continue to promote BBI as a success story when its own publication has been publishing all the damning evidence that reveals BBIs failures for years now?
Are you really going to end this deception? We hope so, Kyle, because good people and their families continue to be hurt. Business is business, but people need to be able to make informed decisions, not have trusted business publications printing fantasies as fact.
We have learned that when franchisees attempt to speak out or warn others, they are hit with legal threats by BBI and intimidated into silence. See what happened when former franchisees exercised their 1st Amendment rights on our site:
BEAUTIFUL BRANDS Franchise : Former Camille’s Franchise Owner Retracts Comment After Legal Threat
BEAUTIFUL BRANDS More Camille’s Sidewalk Café Franchisees Threatened Over Comments
BBI’s “Partner Programs”
Tulsa World and others frequently publish BBI press releases that hype the signing of a new partner brand into the BBI portfolio, along with David’s obligatory statement about how great the new concept is and how BBI is going to make them the next franchise success story (like Coney Beach!). Most soon fade away and are dropped quietly from the BBI portfolio without notice. Strangely, Tulsa World never comments on these departures… or that these brands are missing by the time the next press release is published. Why is that?
We are told BBI’s “partner” brands pay BBI a development fee (We have been told it ranges from $50K to $100K) after receiving the promise that BBI will build them into a lucrative, national franchise system. We’ve been told that these small business owners have reported that they feel neglected and cheated once BBI has their money, but they won’t speak out due to fear of legal repercussions and intimidation. Some have separation agreements that prohibit them from warning others.
Do a quick check of published BBI past press releases and you’ll find evidence of at least 13 companies that signed up with BBI and whose franchise programs have gone nowhere. They made a big splash when they signed up with BBI, and then they quietly slipped off the BBI “portfolio” without a word.
The Bread and Butter Bistro
Caz’s Chowhouse,
Café Ole,
The Crusty Croissant Bakery & Café
Dixie Cream Donut Co.,
Greenz Salads,
In the Raw Sushi
Kyro Pizza
Le Beau Rouleau Crepes and Croissants,
St. Michaels Alley.
Sonny Bryan’s Smokehouse,
Sushi Freak
Top That! Pizza
Please ask David how much these brands paid BBI and why each of them separated from BBI without achieving franchise success? Please ask how many of the current 7 franchisors named in the portfolio have requested or are in the process of separating from BBI?
FYI, I have asked a number of former franchisees to submit questions that will help you with your interview with David Rutkauskas. I will compile them and share them with you asap. I do understand that writing the truth will mean that you will have to violate the protection so far afforded to Tulsa’s Golden Boy by Tulsa World. I sincerely hope you are willing, able, and allowed to do so so that those who are considering signing on with BBI can make a more informed decision.
Legal disclaimer: Of course, these are all my opinions and I invite you to draw your own conclusions. I could be wrong. As opinions, these statements cannot be considered as defamation against TulsaWorld, BBI, its founders or officers.
Feel free to respond with comments or questions. I wish you the best of luck with your story and interview.
ADMIN
UnhappyFranchisee.Com
We look forward to reading Kyle Arnold’s blockbuster interview with Beautiful Brands Chairman & CEO David Rutkauskas.
The result will reveal whether Tulsa World and business editor John Stancavage are in journalism or in the fairy tale business.
ARE YOU A BEAUTIFUL BRANDS INTERNATIONAL FRANCHISE OWNER OR FRANCHISE PARTNER? ARE YOU FAMILIAR WITH BEAUTIFUL BRANDS INTERNATIONAL (BBI)? PLEASE SHARE A COMMENT BELOW.
Senior Helpers Complaints
December 11, 2012
Senior Helpers complaints include allegations of failure to report a potentially abusive situation, inadequate caregiver screening, and putting profits ahead of its elderly clients’ well-being.
Are you familiar with Senior Helpers? Please share a comment below.
Senior Helpers was founded in 2001 to offer professional in-home care services, and began franchising in 2005. Franchisees of the Maryland-based company offer personal and companion care, senior care management and evaluation, nurse and “peace of mind” visits, surgery assistance, sitter services, and Alzheimer’s and dementia care.
One commenter alleged that Senior Helpers failed to investigate or report a potentially dangerous situation.
JacR01 wrote:
After being told that a Client was afraid of their daughter, Senior Helpers did nothing to investigate the claims nor did they alert any state authorities
…After being told of the same daughter’s aggressive outburst of bringing a tire into the home and throwing it at their mother’s feet in a fit of anger, Senior Helpers did nothing to investigate the claim or alert the state authorities.…After being told that the same daughter physically blocked their employee from leaving, Senior Helpers again did nothing to investigate the claim. All they did was tell the employee; "Well we weren’t there."
…After being told of the client’s daughter’s negative change in behavior in the way they treated their mother soon after gaining power of attorney, Senior Helpers again did nothing to investigate the claims or alert the authority.
It is our opinion that this firm cares more about their own financial gain than they do in fulfilling their financial obligations and making sure their clients and employees are treated in a fair and safe manner.
ducati_girl615 also alleges that Senior Helpers does not investigate or report areas of concern. She also alleges that Senior Helpers will charge more depending on the client’s address:
I am a employee of Senior Helpers and agree 100%. I myself have had situations of concern and was told that they would do mediation and nothing was done. I also know that they charge the clients different fees according to what they think they should pay… by looking at the address to where a client lives. They are very money hungry people who could care less about the client or the caregiver. The training they claim they give us would be laughable if it weren’t for the fact that we are talking about seniors here..
They are suppose to do mediations with the clients every so many months but they do not. All they care about is you sitting there getting those hours so they can send you a bill. Please DO NOT be fooled by the smiles and the talk of church from these people. They have one agenda and that’s getting you or your loved one to write a check. People please if you care at all for your loved ones research the business thoroughly before putting your love ones in their hands. I am only with them because I love my client and she and her family counts on me to be there…Remember YOU HAVE BEEN WARNED!!! They will claim they are the highest paid sitter service out there, but trust me THEY ARE NOT…
I also work with another company who I feel really cares about the client as well as the caregiver. They have counselors and clergy on hand 24 hours a day if you become stressed or concerned, so we do have honest people out there…
a loving caregiver alleges that Senior Helpers of Dayton underpays workers and does not perform drug testing on caregivers:
i work for senior helpers of dayton and i can tell you that they only care about getting paid. They dont care about their employees or clients it is very hard to get up and go to work for 8.00 a hour and do what they expect of us. They have no pay increasement so you make the same when you start as when you leave i would quit but i love my client and her family as if they was my own and couldnt think of not seeing them i am in a contract so i couldnt quit and still work for them so i am stuck please think long and hard about who you hire to care for your loved one and also they dont even drug test so some druggie could be taking care of your loved one just thought you should now
Mabes also alleged that Senior Helpers is primarily profit-driven and underpays its caregivers:
Money and profit is definitely the goal here. I worked for a franchise in PA for 1.5 years, finally getting terminated for demanding pay raise and health benefits they promised. They would pull me off regular assignments to work with clients I never met…sometimes I got to work with 2 CLIENTS, very sick, up day and night, of course, my pay was for 1. They typically charged clients in wealthy areas $225-250/day for live-ins, they paid me $90 after taxes!!! I told them to f#$% off and started my own agency and am in back in school for my RN. I do private cases thru referrals and make $600-800 week and keep it all. These agencies don’t offer much for clients unless they are desperate.
ARE YOU A SENIOR HELPERS FRANCHISE OWNER, EMPLOYEE OR CLIENT? ARE YOU FAMILIAR WITH SENIOR HELPERS? SHARE A COMMENT BELOW.
Tags: Senior Helpers, Senior Helpers franchise, Senior Care franchise, Home Care franchise, Eldercare franchise, in-home care franchise, senior helpers complaints, elder abuse, senior care complaints, franchise complaints
REAL ESTATE WORLDWIDE (REWW) Warning
November 19, 2012
Real Estate Worldwide (REWW) potential students and investors are being warned by a “victim” of a previous venture:
“Run the other way – fast.”
(UnhappyFranchisee.Com) Words of warning about multilevel marketing startup Real Estate Worldwide (REWW) were issued by a franchise investor named Blake Warrington. After attending a sales presentation at founder Jim Piccolo’s mansion, he signed up for Piccolo’s former venture, the Bizzibiz franchise program.
A year and a half later, the Bizzibiz franchisees have been all but abandoned and Jim Piccolo is now pitching multi-level marketing-driven real estate seminars and real estate investments through Real Estate Worldwide (REWW).
The office address for the “West Coast Headquarters” of Real Estate Worldwide (REWW) is 8502 E. Princess Drive, Suite 200, Scottsdale, AZ 85255. Not coincidentally, that used to be the address of the Bizzibiz franchise headquarters until October, 2012 when a web designer was named CEO and Bizzibiz became “virtual” (in other words, homeless).
Blake Warrington wrote:
… there has been zero correspondence from Mr. Piccolo for several months now and I only learned from using Google Alerts that Mr. Piccolo had recently started another business venture. I could not believe this.
In essence, as far as I can tell since I have not heard anything, Mr. Piccolo has simply walked away from the sinking (sunk?) ship of BizziBiz without one word being said to the franchise owners – or at least to this one.
This shows a complete lack of ethics, integrity, responsibility, both personally and from a business standpoint, by Mr. Piccolo, and I would not trust a word he says.
In closing, I consider BizziBiz, Mr. Piccolo, the majority of the management team, and several of their employees to have completely failed on almost every level and they have bold-faced lied and hurt many people.
I would never do business with Mr. Piccolo, along with certain other people like Marc Gleeman who had a big hand in the day to day operations and overall problems of BizziBiz.
If anyone is reading this and considering joining his new Real Estate World Wide (REWW), I would highly suggest to run the other way – fast. If trouble starts to happen, as it always does with most businesses, especially new ones, then Mr. Piccolo may simply take the money and run.
It is not difficult to find similar complaints for Mr. Piccolo’s previous ventures either. Before he started Bizzibiz, Jim Piccolo ran an earlier incarnation of REWW, a real estate seminar and investment scheme called Nouveau Riche University.
Back in July, 2011, Justin Dallas wrote:
Justin Dallas
4:41pm on July 10th, 2011
Nouveau Riche has crashed and burned as Jim Piccolo has turned his attention to his new business, bizzibiz.com. I don’t know anything about Bizzibiz.com, but I do know that Jim Piccolo does not honor his commitments. He has not fulfilled his requirements in his purchase agreements, he has not refunded any of the money, he has stiffed instructors not paying them their money and he has moved his staff into his new business location at Bizzibiz so that no one can reach him or any NR staff…
Do not do business with this man. He has taken so many people’s money and run. I don’t know anything about the new business, but I know I would feel comfortable telling everyone I know to run from ANY business he is involved with. There are many people trying to sue him and NR, and talk of a class action lawsuit. Don’t be one of the people he has taken.
According to its marketing propaganda, Real Estate Worldwide (REWW) is led by CEO Kent Clothier, founder of MemphisInvest.com, who has “assembled a ‘Dream Team’ among the whose who in direct selling with founders Brent Payne, Michael Hamburger and Heather O’Brien,” as well as Jim Piccolo and his wife Mary Piccolo.
According to a recent press release: “Jim Piccolo is helping to bring MemphisInvest.com’s proven real estate investment systems and tools to real estate investors worldwide. ‘We have the answer for many entrepreneurs and real estate investors looking to rise above the economic crisis and rebuild their life’s dreams and America,’ said Piccolo.”
Jim Piccolo’s detractors might caution that Piccolo’s previous ventures caused the personal financial crisis many of them suffered, and are the reason their life’s dreams need rebuilding.
As always, UnhappyFranchisee.com cautions: buyer beware. Do your homework, ask hard questions, and make up your own mind.
Read these recent posts:
JIM PICCOLO Blames Bizzibiz Failure on Lazy Punks
BIZZIBIZ Franchise Founder Jim Piccolo Defrauded 105 Investors, Says AZ
BIZZIBIZ Bizzi Biz Franchise Goes Bust, Declares Bankruptcy
Please share a comment, insight or update below.
ARE YOU AN FAMILIAR WITH BIZZIBIZ, JIM PICCOLO, REAL ESTATE WORLDWIDE (REWW), KENT CLOTHIER, HEATHER O’BRIEN, BRENT PAYNE, MICHAEL HAMBURGER OR MARY PICCOLO?
PLEASE SHARE A COMMENT BELOW.
BIZZIBIZ Franchisees Reject Latest Jim Piccolo Spin
November 18, 2012
Jim Piccolo, founder of the Bizzibiz digital marketing franchise, would rather talk about the amazing wealthbuilding opportunities with his new Real Estate Worldwide (REWW) venture than the money lost by those who bought into his Bizzibiz venture hook, line and sinker.
In fact, Jim Piccolo has purged his LinkedIn profile of any mention of Bizzibiz whatsoever.
[Click on image, left, to see Jim Piccolo's recently edited LinkedIn profile.]
In a recent presentation to potential Real Estate Worldwide (REWW) investors, James Piccolo regaled the crowd for nearly an hour with his life story. He spent most of the time getting their greed glands salivating with pictures of his former riches: his multimillion dollar estate (the shoe room was a big hit), his private jet (which had a $300K lien against it, reportedly), his luxury car collection, family vacations to exotic international destinations, surprising his wife with a $100K red piano signed by Elton John, etc. etc.
There was no mention of the lifestyles now being enjoyed by the Bizzibiz franchisees who have been fighting off the collapse of their businesses due to the failure of Bizzibiz to provide the support that was promised – and paid for.
In fact, Piccolo spends only a few minutes explaining how Bizzibiz was wildly successful when he launched it, but then was destroyed by his lazy programming staff (whom he calls “punks”) while he went into the hospital for colon surgery.
Unfortunately for Jim Piccolo, his franchisees are starting to speak out and are “calling B.S.” on Piccolo’s fairy-tale spin-story.
Tea Party activist and Bizzibiz franchise owner Mark Skoda is calling for a franchisee uprising and group lawsuit (Read BIZZIBIZ Tea Party Mark Skoda Threatens Franchise Uprising)
Ronald D. Reynolds has posted that Jim Piccolo is driving around Scottsdale in a beautiful black Bentley and his wife Mary Piccolo is in a black Range Rover despite not having paid him and other creditors. (Comments posted at BIZZIBIZ: Jim Piccolo Mansion Listed For $3.5M (SOLD!))
On our post JIM PICCOLO Blames Bizzibiz Failure on Lazy Punks, Bizzibiz franchisee Blake Warrington rejects Jim Piccolo’s spin-story and recounts the challenges he’s faced since being reeled in by the slick Bizzibiz sales pitch:
As a BizziBiz franchise owner who has been part of the business since it’s inception I am calling a big B.S. to a lot of what Mr. Piccolo is stating regarding BizziBiz and it’s operations.
A little about me to understand my background, why I purchased a BizziBiz franchise, and to lend some credibility to what I am going to state here.
I have been studying and applying (and I am using BizziBiz terminology here) “digital marketing services” for numerous years. Six years ago I joined a network marketing company after losing my job and built 99% of what is now a very successful business using digital marketing strategies – and still do today.
Because of my success in building my network marketing business, people started contacting me and asking if I could help them with web site design and digital marketing services. I started doing this and quickly got overwhelmed as the “one-man-show. I also realized there may be an opportunity to start another business because there was a huge need for these types of services for small business owners.
I reconnected with a former business associate who understood the digital marketing space and had done very well with lead generation for his real estate business prior to the 2008 crash. He agreed to come on board and work with me to build this new business venture. Again, as our client base grew, the two of us and the small team we had put together started to get real busy with the growth we were experiencing.
Around this time I was contacted by another friend/business associate who was involved in Nouveau Riche. He knew I was in the digital marketing space and called to explain this new BizziBiz venture and invite me to a meeting to learn more.
Long story short, I was invited to Mr. Piccolo’s home in Arizona and was quite impressed with what I saw and the caliber of people I met there. This was a core group of about 25 – 30 Nouveau Riche people, along with myself (not having ever been in Nouveau Riche) who had been invited to see the debut of the new BizziBiz and Extreme Franchise Marketing business opportunity. We were also informed that if we came on board, and we were accepted, we could be part of a special “Centurion Counsel” which would consist of a select group of 25 franchise owners who would get preferential treatment, recognition and other benefits.
Knowing that we were needing to expand our digital marketing business, and based on what was told to us at Mr. Piccolo’s home, I felt BizziBiz would be the perfect fit. So my wife and I plunked down our $25,000 to purchase a BizziBiz franchise and we proceeded to go to work and grow the business and add new clients.
While it is true that Mr. Piccolo did suffer an extremely serious and unfortunate health issue at one point, there were serious problems with BizziBiz from the very beginning (on Mr. Piccolo’s watch so to speak), and these problems continued throughout the entire time we worked with BizziBiz. In fact, they only got worse as time went on.
Some of the issues we dealt with were extremely slow turn around times on getting work completed. Simple web site design could take several weeks and in most cases, months to complete. Never ending broken promises on deliverables happened regularly, on a daily and weekly basis. Simple, but important and timely, tasks could get pushed down and not dealt with for extended periods of time. This quickly began to affect our business, our income and would soon start to impact our credibility in the community.
While BizziBiz billed our clients on a timely manner, commissions paid to franchise owners would be several weeks late and sometimes months. I had one incident where about $1,000 was owed to us for a couple months. This was during the period when Jim was in the hospital. When he finally got out of the hospital and found out was going on, I contacted him about the our commission check. Long story short, we were promised our check on three separate occasions and it took several more weeks before we received it. At one point in a conversation I had with Mr. Piccolo he stated our check was on his desk and he was going to personally drop it in the mail as soon as we hung up. It never came and took several more phone calls and emails before the check arrived. We were somewhat fortunate that we were eventually paid all of our commissions. However, there are numerous franchise owners I have heard about that have never been paid and have just given up.
We also had incidents where BizziBiz over billed or continued to bill our clients after we had told them to stop billing them. This was extremely frustrating and it almost got to the point where we were going to have to repay our clients out of our own account.
Phone calls and emails to certain people in BizziBiz would go unanswered for days and sometimes over a week, often on timely issues, tasks and projects that we needed to report to our clients about. It was extremely embarrassing for us with our clients as it happened over and over.
BizziBiz was constantly saying that they were completing work and that a given job was done. When we went over the job tasks there were constant issues with getting through to them to explain that they had in fact not completed the work. Case in point; we were told that the on page SEO (Search Engine Optimization) work had been completed on one of our clients web sites. When I looked at the source code (the hidden content search engines use to rank a web site) it had only been completed on a couple pages. Most of it had not been done at all.
I remember we had a conference call with a new CEO or manager regarding this issue, along with several other never ending issues we had on our plate to discuss. I brought up the fact that the on page SEO work had not been completed because I understand and know what is required for this to be done. Her response almost floored me and my three partners. She replied by asking me, “If I you know how to do all of this stuff yourself, why did you purchase a franchise?” That was her answer! We were like, are you kidding me? Unfortunately, the conversation went downhill from there. I also suspect that because the majority of franchise owners were former Nouveau Riche distributors, of which most of them knew very little or nothing regarding web site design, SEO and digital marketing serves, that BizziBiz could just tell them work was complete – when it was not, and they would not know any better.
Another case in point is BizziBiz brought in some SEO guru and we had him on a conference call with one of our clients who was about to leave us because of unsatisfactory work by BizziBiz. This new “SEO guru” promised our client that he would get a certain keyword in the first organic position on the first page of Google in something like 60 or 90 days. This was first position on the first page – not just getting our client on the first page. That is a HUGE promise and something I would never guarantee, however, this guy was some $250/hr guru, came off as extremely confident, so we all went with it. Of course this too did not happen, and, in fact, our client was actually going down in rankings for almost all of his keywords that we had started getting him good rankings for when we were doing the work.
Back to the phone call, we questioned this new CEO (manager) regarding what happened to getting our client on the first position of the first page of Google for this one particular keyword, and she stated that BizziBiz would never guarantee such a thing. Myself and my two partners were on the call and could not believe what we just heard. When we explained to her that the three of us were on the conference call with this SEO guru who made the promise, along with another BizziBiz employee and our client, and she simply restated that they could not guarantee such a thing and that the SEO guru was no longer with BizziBiz anyway. It was unbelievable!
At one point another franchise owner asked me to look at a keyword ranking report BizziBiz had sent him on one of his clients. When I looked at it BizziBiz was claiming top rankings for a very large number of keywords – which appeared to be true. The problem was most of the keywords had little or no relevance to the clients business, or there was little or no monthly search volume for the keywords. So, even if they did in fact rank high for a given keyword, it would produce little or no traffic and probably zero conversions or sales. Here again, an unsuspecting franchise owner like this one had no idea this was actually a poor report and was getting the wool pulled over his eyes.
I could go on and on with story after story regarding ongoing and never ending epic failure of BizziBiz, the management team, and the revolving door of employees and managers on almost every level.
Anyway, shortly after this phone call we knew we had to make a drastic change fast, or we were going to go out of business. We were starting to lose our clients because of BizziBiz’s constant failures, and more important, we were starting to lose our reputation and credibility in the community. I occasionally teach digital marketing strategies at local networking groups which gets us business. Bad word in these meetings would travel fast and cause serious damage to our growing business.
We ended up “throwing ourselves on the sword” and we spoke with every one of our clients who had been damaged by BizziBiz’s complete lack of credibility and their ability to perform. We were honest and upfront, and explained how we transitioned from doing the majority of the work ourselves and how I had purchased the franchise and turned their business over to BizziBiz.
We went to each client personally and offered to do work for them for free in order to gain their business and trust back. Fortunately the majority of our clients took us up on our offer and we were able to get every one of these clients back on track and fix all the problems created by BizziBiz. For the most part this took us several months of hard work to do in turning around poorly done SEO work (or none done at all), unfinished websites, and cost our company thousands of dollars and untold lost and uncompensated for hours. We also had to temporarily stop generating new business since there was so much work to do, which potentially cost us thousands of dollars in additional revenue.
It is also important to note that there has been zero correspondence from Mr. Piccolo for several months now and I only learned from using Google Alerts that Mr. Piccolo had recently started another business venture. I could not believe this. In essence, as far as I can tell since I have not heard anything, Mr. Piccolo has simply walked away from the sinking (sunk?) ship of BizziBiz without one word being said to the franchise owners – or at least to this one. This shows a complete lack of ethics, integrity, responsibility, both personally and from a business standpoint, by Mr. Piccolo, and I would not trust a word he says.
In closing, I consider BizziBiz, Mr Piccolo, the majority of the management team, and several of their employees to have completely failed on almost every level and they have bold-faced lied and hurt many people. I would never do business with Mr. Piccolo, along with certain other people like Marc Gleeman who had a big hand in the day to day operations and overall problems of BizziBiz.
If anyone is reading this and considering joining his new Real Estate World Wide (REWW), I would highly suggest to run the other way – fast. If trouble starts to happen, as it always does with most businesses, especially new ones, then Mr. Piccolo may simply take the money and run.
Anyone is welcome to contact me if they have any questions.
You can also Google my name and you will not find any disparaging information about me – unlike you will regarding Mr. Piccolo.
Sincerely,
Blake Warrington
w. X2remeMarketing.com
UnhappyFranchisee.com has been reporting on the Bizzibiz franchise fiasco since its launch. Read all of our posts here:
Read these recent posts: JIM PICCOLO Blames Bizzibiz Failure on Lazy Punks
BIZZIBIZ Franchise Founder Jim Piccolo Defrauded 105 Investors, Says AZ
BIZZIBIZ Bizzi Biz Franchise Goes Bust, Declares Bankruptcy
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