PET CORNER INTERNATIONAL: Scam or No Scam?

Pet Corner International claims it offers a low-investment, home-based distributorship that will enable you to capitalize on the $54 billion pet care industry.  Is Pet Corner International a scam?

(UnhappyFranchisee.com) The Pet Corner International distributor program claims it offers “an affordable, easy to operate business in a thriving industry.”

According to the Pet Corner International website:

Enjoy a proven business model with numerous competitive advantages:

• Recession-resistant industry
• Flexible, home-based business model
• Ground Floor Opportunity
• Offer the most in-demand, all natural pet products
• Company Established Accounts
• Growth Opportunities
• National Television Advertising
• Strong Company Support and Local One-On-One Training

The company claims:  “PCI can be your vehicle to a reliable and growing income and a business that, with our help, can develop for you into long term financial security.”

PET CORNER INTERNATIONAL Complaints

Numerous complaints about the Pet Corner International business opportunity have been popping up on complaint sites lately.

Don’t Buy into Pet Corner* wrote:

Posted: Friday, September 16, 2011

Reported By: Don’t Buy into Pet Corner — Sneads Ferry North Carolina United States of America

Pet Corner International

Pet Corner International This Company misrepresented itself to me and hasn’t done the things it said it would do. Deerfield Beach, Florida

I bought a distributorship from Pet Corner International in December 2010. They claimed to be audited and inspected by the National Science Foundation. The National Science Foundation has denied that they have any relationship with Pet Corner International. That claim was one of the main reasons I bought into this Company. Also,the product hasn’t sold very much at all in 9 months. Pet Corner has abandoned me as a distributor, not contacting me anymore. They haven’t done a thing to help me in this business as promised. I just want the public to be aware of them so people won’t make the same mistake I did.

* UnhappyFranchisee.com received the following message 12/7/11 from the author of this complaint:  “There is an agreement in place to resolve all the issues between Pet Corner International and myself. These issues have been resolved to both Parties mutual satisfaction.”

October 14, 2011 EJ wrote:

I purchaed a distributorship in Sept 2010. Product doesn’t sell like they tell you.I’ve yet to see one advertisement on TV. The 2 distributors they gave me to contact (Norfolk Va. and Seattle Wa) told me the products sell immediately off the shelf. Vets and store owners tell me the product price is too high at $19.99. In one year 11 retail accounts I’ve sold less than 25 bottles. In this time frame not one representative from Pet Corner has called to ask how I was doing or if they can help. I’m fairly well off so I can handle the loss. I understood the risk going in. What I don’t get is if we as distributors can’t sell the product Pet Corner International will never survive. They should have a vested interest in making sure we succeed but that just doesn’t seem to be the case. I’m going to think about trying different approaches to sell the product. To those of you thinking about buying –BUYER BEWARE

October 25, 2011, Hamond B3 wrote:

…The product only has a 30% profit for the retailer. Even on consignment they turn it down because everything they sell outside of pet food they work on 50 to 60 % margin. They dont tell you that in the sales pitch.

The displays they have for the product are lame at best. The bottles do not stand up straight. One has to kneel down to read what the bottle says. They will tell you the average distributer sell 60 bottles a month or one a day. Not even close at 19.95 I was lucky to sell one a week. The product is overpriced for the market. My displays were located in high end car washes with plenty of traffic. My peeve with them they are very evasive to give you any information on there dealer network if they even have one. They are more interested in the short term of selling start up inventory at 15,000 a pop. I thought I did all my home work after months of research but obviously that was not enough. There is no company dealership or distributorship that will not allow you to use social media to advertise. I believe they do not want there failure rate to be known through this media. Be very aware of them. These guys are preditors on the phone.

ARE YOU FAMILIAR WITH THE PET CORNER INTERNATIONAL DISTRIBUTORSHIP?  IS IT A GREAT OPPORTUNITY OR IS PET CORNER INTERNATIONAL A SCAM?  SHARE A COMMENT BELOW.

Contact the author or site admin at UnhappyFranchisee[at]gmail.com.

 

PLAY N TRADE Franchise: Honesty Still Eludes Embattled Franchisor

(UnhappyFranchisee.com) Dear Play N Trade*:  How can you be the “fastest growing video game franchise worldwide” if you are not, in fact, growing?

The current Play N Trade press release states that you are the fastest growing video game franchise.

In fact,  in most of the 29 press releases you’ve posted on PR.com since January, 2010 you tout the growth of the Play N Trade franchise chain with such statements as:

- Play N Trade Franchise, Inc., the largest and fastest-growing franchised video game retailer in the country… January 17, 2010

- Play N Trade is the largest and fastest-growing video game franchise worldwide. It is also one of the fastest-growing franchises worldwide across all industries… February 17, 2010

- Play N Trade Franchise, INC, the fastest growing franchise worldwide… opened over 5 new stores per month in 2009 and expects to continue to see growth at that pace or even faster throughout 2010. March 13, 2010

- Play N Trade Franchise, Inc., the fastest growing video game franchise worldwide… Play N Trade is the largest and fastest-growing video game franchise worldwide. It is also one of the fastest-growing franchises across all industries.  April 01, 2010

- Play N Trade Franchise, Inc, the largest video game franchise worldwide, is excited to announce that 13 new Play N Trade stores have opened for business this year and another 13 are already scheduled to open by September.  New Play N Trade stores are opening their doors in more than a dozen different states and provinces throughout the U.S and Canada. Play N Trade is the largest video game franchise worldwide. It is also one of the fastest-growing franchises across all industries.  July 13, 2010

- Play N Trade Franchise, Inc., the fastest growing video game franchise worldwide November 03, 2011

PLAY N TRADE: Tens of Millions in Franchise Investments Lost in Past 2 Years?

The problem is, throughout 2010 and 2011, it seems that Play N Trade has experienced only negative growth, with the number of operating U.S. franchises declining from 241 in 2009 to 174 in 2010 to 146 in 2011.**

As you stated that you were to open 30 stores in 2010, it would seem likely that more than 125 PNT franchise locations have gone dark in the past two years, representing 125 franchise investments equalling tens of millions of dollars have been lost.

At the upcoming Franchise and Business Opportunities Expo, will Play N Trade Vice President of Franchise Development, Charles Franklin, really be telling prospective franchisees that Play N Trade is growing?

Do you think that is an honest and ethical representation that meets the guidelines for franchise advertising mandated by the Federal Trade Commission and the State of California?

We eagerly await your response.

UnhappyFranchisee.com

* We submitted a link to this open letter to Play N Trade PR representative Rosaline Halversen

** According to Entrepreneur.com

ARE YOU FAMILIAR WITH THE PLAY N TRADE VIDEO GAME STORE FRANCHISE?  SHARE A COMMENT BELOW.

To contact the author or site admin, email UnhappyFranchisee[at]gmail.com

For more on Play N Trade franchise, read:

PLAY N TRADE Video Game Franchise Ends in Bankruptcy

PLAY N TRADE Franchise Stores Closed & Closings

PLAY N TRADE Franchise: 30 Stores to Open in 2010

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

PLAY N TRADE: MI Bankruptcy Auction

PLAY N TRADE Forum Gets Spammed N Slammed

PLAY N TRADE: Video Game Franchise Played Out?

Is the GNC Franchise a Great Opportunity?

The GNC franchise opportunity ranked #40 in the 2011 Entrepreneur 500.

The GNC website boasts that it’s one of the world’s best  franchise opportunities:

“GNC has been perfecting the franchise system for the past 20 years. Not only do we have over 20 years of franchise experience, but when you join our system you gain access to a company with 75 years of retail experience.

“We are proud to be able to provide franchisees with a level of support that is among the best in the specialty-retail industry.”

However, according to the Entrepreneur 500 listing, GNC U.S. franchise locations declined from 1,046 in 2007 to 892 in 2010, a net loss of 152 franchise locations.

Senior management has been preoccupied with the April, 2011 GNC public offering.

Additionally, the management team has been shaken up with recent turnover.

General Nutrition Centers president and chief merchandising officer Beth Kaplan resigned last month after 3.5 years in the role.

This month, GNC Chief Operating Officer David P. Berg resigned, effective September 2011.

Why did GNC lose 152 U.S. franchise locations in the past 3 years?

How is the Initial Public Offering and management turnover affecting GNC franchise owners?

Is the GNC franchise a strong franchise opportunity?

ARE YOU FAMILIAR WITH THE GNC FRANCHISE OPPORTUNITY?  SHARE A COMMENT BELOW.

 

PLAY N TRADE Franchise Stores Closed & Closings

(UnhappyFranchisee.com) The Play N Trade franchise opportunity may seem like a safe, risk-free investment because of the well-known brand name, the great product and positive media hype (which includes rankings and awards from publications that survive on advertising from franchise companies like Play N Trade).

Some Play N Trade franchise owners may have a different opinion on how risk-free buying a Play N Trade video game store franchise really is.

Play N Trade, San Mateo, CA

“Orlando and Misty Megia opened Play N Trade on B Street in downtown San Mateo four years ago but they are closing its doors June 26.  Spending money on video games is something people are doing less of in the poor economy, Misty Megia said.” The Daily Journal, June 20, 2011.

Play N Trade, Squamish, BC, Canada

“Squamish Play N Trade has joined ranks with the legion of Play N Trade stores that have closed across Canada and the United States and is embroiled in a lawsuit with the California-based company.  The Squamish video gaming store closed on Labour Day weekend…”  Squamish Chief, December 3, 2010.

Play N Trade, Butte, Montana

“Play N Trade closing doors.  Play N Trade, a retail video game store in Butte, will close its doors Saturday.  Owner Jason Manning said the business had been operating in Butte for almost four years, but heightened competition and a down economy forced the closure.  It will result in four full-time people being put out of work.” MT Standard, Wednesday, May 4, 2011

Play N Trade, New York, NY

“Play N Trade – CLOSED. 137 E 13th St, New York, NY 10079, Neighborhood: East Village” Source:  YELP

Play N Trade, Alexandria, VA

“My local Play N Trade in Alexandria, VA was apparently shut down yesterday. I had only gone to this place a few times, because frankly the people there were unfriendly, appeared to make fun of you behind your back…”  Jamisonia, Feb 01, 2011

Play N Trade, Florida

“My local Play N Trade is going out of business. Sadly it’s the last one in the area… I frequented this store and the owner was a great guy, as is his mom. They just weren’t making money and had no choice. The sad day of close is on the 15th of September.” prot8to on Sep.02, 2010.  Graphic by prot8to.

Other Play N Trade Reported Closures:

Palmdale Alabama 93551

Avondale Arizona 85323

Albuquerque, New Mexico 87109

Smithtown, New York (32 East Main St. 11787)

Elk Grove, CA (2513 Riparian Dr. 95624)

Tustin, CA

Colonie Center, Colonie, NY

Sarasota, FL (4013 Clark Rd 34233)

Miami Lakes, FL

REPORT A PLAY N TRADE FRANCHISE CLOSING OR ADD A COMMENT BELOW.

Email Play N Trade closing photos to unhappyfranchisee[at]gmail.com

WIRELESS TOYZ: Joe Barbat Boasts Victory in Franchise Lawsuit

(Unhappy Franchisee) Franchise company Wireless Toyz Inc. will not have to pay a Colorado franchisee the $200,000+ award he won in a 2010 lawsuit, according to a story in Crain’s Detroit business.

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

WIRELESS TOYZ: Joe Barbat Claims Lazy Franchisees Have Selves to Blame, 

WIRELESS TOYZ: Joe Barbat Fraud Trials]

In February, 2010, a jury verdict against Wireless Toyz and its finance director and VP of franchise development Richard Simtob, awarded franchisee David Abbo and Colorado Toyz Inc. $180,600 in damages against Wireless Toyz and $20,000 against Simtob on a single count of silent fraud.  “Silent fraud” occurs when one person defrauds another by “failure to disclose material facts or creating a false impression, rather than through overtly false statements.”

Earlier this month, Oakland County Circuit Judge Shalina Kumar threw out the prior verdict and ruled in favor of Wireless Toyz.  Kumar found that jurors in the trial weren’t instructed that Abbo must have relied on a false impression from Wireless Toyz to prove silent fraud. She also found that a disclaimer in the franchise agreement appears to contradict any alleged ‘extracontractual statements’ that may have been misleading.”

Other lawsuit claims, which included fraud, negligent misrepresentation and violations of franchise law either, were dismissed or resulted in no damages.

Wireless Toyz issued a celebratory press release that called the lawsuit “frivolous,” and seemingly attempted to position the judge’s ruling as an endorsement of the high ethical and moral fortitude of the embattled Wireless Toyz franchise organization.  However, it seems that the dismissal was more a result of inadequate jury instruction in the original trial as well as disclaimers in the franchise agreement known as merger or integration clauses,  rather than the integrity of the Wireless Toyz sales process.

Here is the Wireless Toyz franchise lawsuit press release in its entirety:

___________________________________________________________________

Wireless Toyz and CEO Joe Barbat Prevail in Franchise Law Suit

SOUTHFIELD, Mich.–(BUSINESS WIRE)–Wireless Toyz, Joe Barbat its founder and CEO, Richard Simtob and Jack Barbat have prevailed in a frivolous lawsuit filed by a disgruntled franchisee. After a four week trial last year before the Oakland County Circuit Court, the jury found no cause of action on eight of the nine counts alleged. Earlier this week, the honorable Judge Shalina D. Kumar granted judgment in favor of Wireless Toyz and its aforementioned executives, vindicating them from all charges. Judge Kumar held that plaintiffs’ claims were barred as a matter of law, and further ruled that:

“This ruling speaks to the true ethics and moral principles of how Wireless Toyz operates and was founded”

Defendants correctly argue that the evidence adduced at trial established that Plaintiffs were not defrauded or mislead regarding the extent of their franchise.

The Court finds that the evidence shows that Defendants did not conceal the existence, nature, uncertainties or financial effects of the franchise opportunity.

The Court finds that under Michigan law, the merger/integration clauses and signed acknowledgements are valid, binding and enforceable, and bar Plaintiffs’ claim, which is based upon alleged extra-contractual and oral misrepresentations and omissions, as a matter of law.

“This ruling speaks to the true ethics and moral principles of how Wireless Toyz operates and was founded,” states, Barbat. “My objective was to see justice prevail, although it was a long and costly road, I was confidant that in the end justice would indeed prevail,”

Brian Witus of the law firm, Cohen, Lerner, Rabinovitz & Witus, P.C., states, “The jury verdict and Judge Kumar’s ruling constitute a complete vindication of Wireless Toyz. Wireless Toyz, Joe Barbat, Richard Simtob and Jack Barbat have vigorously defended this lawsuit in order to protect the name, integrity and reputation of Wireless Toyz, its exceptional franchisees and its valued customers.”

In October of 2009, Barbat re-acquired the company he founded. Since then, the company has experienced positive momentum with increased same store sales in 2010. Barbat is focusing his time and effort on enhancing Wireless Toyz’s business model. “We have hired a new operations manager, an accountant and will be opening new stores in 2011 and 2012. I am glad to put this chapter behind us and am committed to focusing on building the business by creating jobs and strengthening our already proven concept in the wireless industry.” said Barbat. This only goes to show that with Barbat back at the helm, Wireless Toyz is looking forward to continued success in the future.

About Wireless Toyz

Wireless Toyz is the largest independently owned chain of cellular superstores. Each Wireless Toyz outlet brings together cellular phones, accessories and service plans from multiple carriers, including Sprint, T-Mobile, Verizon, AT&T, Metro PCS, Cricket, Boost, as well as satellite TV offerings from industry-leading DirecTV. This broad selection simplifies shopping for consumers by eliminating visits to multiple stores. The company is headquartered in Southfield, Michigan, opened in 1996, and began franchising in 2001. The company had only nine locations that year, and today, 11 years later, it operates 95 stores in 12 states.

Founder Joe Barbat took a hiatus from the business in December 2007, selling off some of his shares and retaining his position as chairman of the board. In October 2009, Barbat returned as major shareholder and put together a new team to enhance the success of Wireless Toyz.

DIRECTBUY: Attorney General Sues DirectBuy, DirectBuy Franchise Owner

The West Virginia Attorney General has filed a lawsuit against DirectBuy, Inc., DirectBuy’s president and the Charleston-Huntington DirectBuy franchise owner for “unlawful, coercive, deceptive, and high-pressure sales practices.”

The lawsuit alleges that DirectBuy engages in an aggressive bait-and-switch scam in which it tricks consumers into buying expensive memberships costing thousands of dollars by offering them attractive incentives, discounts and free gifts that they’ll never deliver.

According to AG Darrell McGraw, DirectBuy sells “expensive club memberships that have little actual value.”

Here is the press release issued January 26, 2011 from the West Virginia Attorney General’s office:

 

“Attorney General McGraw Sues DirectBuy, Inc. and Local Franchise Over Pressuring and Unfair Sales Techniques

“CHARLESTON – Attorney General Darrell McGraw filed suit today in the Circuit Court of Kanawha County against DirectBuy, Inc., headquartered in Merrillville, Indiana, and its local franchise, DirectBuy of Charleston-Huntington, and its President Timothy Parker for unlawful, coercive, deceptive, and high-pressure sales practices.

“Beginning in 2009, consumers complained that DirectBuy, a discount buying club, pressured them into purchasing memberships costing thousands of dollars. DirectBuy coerced consumers by offering free trial offers, guaranteeing free gifts, and offering a variety of other promotions. When consumers attempted to redeem these offers, they discovered the offers were not available as promised. Instead, DirectBuy focused on selling expensive club memberships through a sophisticated and oppressive sales presentation.

“DirectBuy targets prospective members by direct mail, internet, and television advertisements. The solicitations encourage consumers to contact the company to get their “free visitor’s pass” to its exclusive showroom. If consumers sign up for a free pass, they are invited to a sales presentation at the local store. After acquiring the consumers’ personal information, each consumer is paired with an individual salesperson for a high-pressure one-on-one discussion designed to close the sale.

“During the one-on-one portion of the sales presentation, DirectBuy pressures consumers with its ‘now or never’ tactic. DirectBuy warns consumers that anyone who leaves the premises without joining the club will be banned from joining forever. This threat is false, misleading, and unconscionable. When consumers become members, they discover that many of the promises DirectBuy makes during the sales presentation directly contradict the actual terms of the membership agreement. To induce consumers to purchase the membership, DirectBuy sales representatives offer money back guarantees, promise no hidden fees, and guarantee the lowest prices. These representations are false because the written contract specifically prohibits refunds, discloses various hidden fees, and plainly states that ‘DirectBuy does not guarantee that members will get the best price.’ DirectBuy discloses these material terms only after the consumer has purchased and signed the membership agreement.

“After receiving several complaints from consumers, Attorney General McGraw’s office opened an investigation into DirectBuy’s practices and determined that the company was engaged in unlawful sales practices. ‘West Virginians should not be pressured with coercive, deceptive, and unlawful tactics into buying expensive club memberships that have little actual value,’ said McGraw.

“Attorney General McGraw’s office seeks a preliminary injunction barring DirectBuy from engaging in this unlawful activity in West Virginia until further order of the court. The complaint further requests that the court eventually order restitution, refunds, debt cancellation, and civil penalties.

“Consumers who would like to file a complaint should call Attorney General McGraw’s Consumer Protection Division at 1-800-368-8808 or 304-558-8986. Consumers can also print a complaint off the Attorney General’s website at www.wvago.gov.”

ARE YOU FAMILIAR WITH DIRECTBUY OR THE DIRECTBUY FRANCHISE PROGRAM?  SHARE A COMMENT BELOW.

CHILDREN’S ORCHARD Suing Failed Franchise Owner

According to a story in the Detroit Free Press, Children’s Orchard is suing one of its Oklahoma franchisees for allegedly closing her store and reopening in a new location under a new name.

According to the Free Press article, the lawsuit, filed by Children’s Orchard in U.S. District Court in Detroit, alleges that franchisee Tiffany Thomas (formerly Tiffany Jaecke) and her then-husband Kent Jaecke, signed a  10-year franchise agreement in 2005 to operate a Children’s Orchard store in Oklahoma City.

The lawsuit claims that on July 14, 2010, just halfway through the agreement, the couple closed the Children’s Orchard store, moved to another location, and “clandestinely began operating the store under the name Upsy Daizy, in violation of a noncompete agreement.”

The Free Press states that Tiffany’s father also got dragged into this:  “Upsy Daisy [sic] is owned by Thomas’ father, Paul Overton Thomas, who was unavailable for comment. The lawsuit claims that Paul Thomas knew of the franchise agreement between his daughter and Children’s Orchard and intentionally interfered with that relationship by setting up a competing business.”  Paul Thomas is also named in the suit.

Happy Father’s Day, Paul.

Children’s Orchard alleges that the Oklahoma City franchisees failed to return confidential operating manuals, customer lists, records, files.  They claim that in opening Upsy Daizy, their franchisees violated their franchise agreement and a noncompete agreement, and stole trade secrets.  The lawsuit states:  “Defendants are using the Children’s Orchard Business System and Trade Secrets and are directly competing with the Children’s Orchard franchise system.”

Is Children’s Orchard Pushing Daizies?

Children’s Orchard is legally represented by COI CEO’s brother, Adam (Shaken, Not Stirred) Bond.

It will be interesting to see if Attorney Bond can keep a straight face as he explains the powerful, even magical, success secrets entrusted to Children’s Orchard franchisees upon their acceptance into the franchise’s elite ranks.  When Adam’s brother, Taylor Bond, took over, he proclaimed that he would grow the chain to 300 stores.

In the years that followed, Taylor Bond grew the chain from nearly 100 stores to just over 40 stores.

The brilliance of growing a chain by closing stores is a well-guarded trade secret to be sure.

A Blight in the Orchard.

As their comrades fell around them, disgruntled and failing franchisees formed an independent franchise association called The Orchard Cooperative.  Unable to get their concerns taken seriously by Taylor Bond and COI management, the Orchard Cooperative published a website detailing its complaints.  Chief among those complaints was the onerous Children’s Orchard franchise agreement that made it nearly impossible for franchisees to sell their stores.

In the Free Press article, Tiffany Thomas is quoted as saying “I tried to sell [her Children’s Orchard franchise] several times, but I couldn’t get anyone to sign the franchise agreement.”

According to Orchard Cooperative members, their concerns regarding the agreement, as well as operational and financial issues, fell on deaf ears.

And the stores kept closing…

Whoopsy Daizy!  Everybody Loses.

Of course, it’s likely the defendants will lose (or settle).  That inch-and-a-half thick franchise document Thomas and Jaecke signed 5 years ago was not drafted to allow franchisees to bail on their agreements and open under another name – no matter how bad the franchisor sucks.

And while putting the new company in a family member’s name may have seemed clever at the time, it just served to make  Dad – and his assets – an additional, brightly colored legal target.

But while the franchisees will likely lose, so will the franchisor.

Abraham Lincoln may have come up with the line “A house divided against itself cannot stand,” but Children’s Orchard deserves credit for providing living proof in the contemporary business world.

The irony is, it appears to be a great market for consignment and resales.  Children’s Orchard’s competitors (Once Upon a Child, especially) seem to be thriving while CO’s stores are slowly expiring.  Yet it seems that because the Children’s Orchard franchisor has failed to build a rapport, camaraderie and team approach to building the chain, its desperate franchisees are looking for ideas outside the organization – and their agreements – to get back in the game.

It turns out that Tiffany Thomas has extensive franchise development experience – she was a VP for Glamour Shots.  It’s unfortunate that Children’s Orchard wasn’t able to channel her experience, as well as the energy, creativity and finances she put into developing Upsy Daizy, into their chain or at least her own store.  But when a franchisor is inflexible, autocratic, dictatorial and/or nonresponsive, franchisees will seek other outlets for their entrepreneurial energy and drive.

And it’s unfortunate that Children’s Orchard will now devote time, energy and financial resources toward suing – rather than supporting – their desperate franchisees.

Related reading:

CHILDREN’S ORCHARD: Overview & Links

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

CHILDREN’S ORCHARD: May 2010 Press Release

WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

EDIBLE ARRANGEMENTS: Franchisor Responds to Franchise Lawsuit

Edible Arrangements franchise owners filed a lawsuit last week, alleging that, over the past few years, the Edible Arrangements franchisor has systematically made changes that are extremely detrimental to their franchise businesses.

(Read EDIBLE ARRANGEMENTS: Franchisee Lawsuit Alleges Unfair Practices, EDIBLE ARRANGEMENTS, Tariq Farid Franchise Complaints)

The company vehemently denies the allegations, and vows to “defend the complaint vigorously.”

In response to reports of the lawsuit, which was filed by the EA Independent Franchise Association representing 170 Edible Arrangement franchises across the United States, Edible Arrangements issued the following statement:

Statement Regarding EAIFA Lawsuit

Edible Arrangements International, Inc. has received a copy of the EAIFA lawsuit
filed last week and strongly disagrees with the EAIFA’s characterization of the
facts and conclusions. The Company plans to defend the complaint vigorously
and is very confident its strategies to build and evolve the Edible Arrangements’
system are expressly allowed and have been undertaken in good faith.

Since its inception, the Company’s main objective has been and always will be
to continuously improve the business opportunity for our franchisees and the
customer experience.

Some of the changes that Edible arrangements franchise owners object to include:

• Requiring individual franchises to use approved produce vendors, even if a franchisee has a long-standing arrangement with a local vendor.
• Making all franchisees have Sunday hours.
• Requiring franchisees to buy new computer and software system directly from Edible Arrangements rather than another vendor offering a lower price.
• Requiring franchisees to share their customer lists with Edible Arrangements.
• Reducing the franchisee’s revenue share of online orders from 100% to just 20%.

Franchisees also allege that the Edible Arrangements franchisor is engaging in “virtual encroachment,” and unfairly competing with them via an ecommerce site at DippedFruit.Com.

EA Independent Franchise Association is represented by Justin M. Klein, a franchise attorney at the Red Bank, NJ law firm of Marks & Klein, LLP

ARE YOU FAMILIAR WITH THE EDIBLE ARRANGEMENTS FRANCHISE?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

Email the author or site admin at unhappyfranchisee[at]gmail.com

ASHLEY FURNITURE: Failed Franchise Owner Blames Corporate

Ashley Furniture franchise owner Robert Myers says the franchisor for the failure of his three stores in Yuba City, Redding and Chico, CA.

Myers issued a press release through his attorney stating that Wisconsin-based Ashley Furniture Industries "made it impossible for us to continue to operate."

According to franchisee Myers:  "They advised us that they were cutting off our credit line; were not going to fill our current orders; were seizing the existing floor inventory and planned to sell off the furniture, fixtures and equipment via a liquidation agent."

"When AFI asked us to surrender our assets to them, we agreed to do so but only if AFI would provide the products that were not yet delivered to customers," Myers said. "I deeply regret that the closing of my business has greatly affected many loyal customers and valued employees."

Myers claims he has been unfairly accused of wrongdoing:

"Over the last few months I have been accused of many things which have been reported in the press. The facts are: I was trying to keep the stores open to provide for my employees and their families, my creditors and my own family as well, but I simply could not generate sufficient sales in this very bad economy to remain in business."

Is Ashley Furniture franchisee Robert Myers a victim of an unscrupulous franchisor?

Is Ashley Furniture franchisee Robert Myers a victim of a greedy and unscrupulous franchisor?  Not according to a report last month by CBS affiliate KHLS TV:

Former franchise owner Robert Myers is accused of bilking hundreds of people out of their money.  Shasta County District Attorney Jerry Benito says he’s investigating more than 200 cases and believes there’s a similar number in Butte County.
        According court documents, a store employee acting as an informant told investigators. the Redding store had been doing poorly since the beginning of the year, but the owners, Robert and Vera Myers, continued to fund their extravagant lifestyle by taking payment for orders they never paid for.  Even buying a new Mercedes for their daughter.
        That same informant says they believe the owners took money with no intention of refunding the customers.
        The myers Chico home is now up for sale for $749,000, and they are no longer in control of the stores.  Denver-based SPCI took over management of the Redding , Chico and Yuba City stores in May.

Many commenters reacting to the franchisee’s claim, some claiming to be ex-employees, had little sympathy for Robert & Vera Myers. 

Ms Reason wrote:

I have NO pity for the Myers. They have operated in a very erratic and under-handed manner. They owe a lot of people refunds they will never see and they have still not completed getting the furniture delivered that was ordered months ago. If they can’t pay the factory, what is the factory supposed to do? They probably were owed a huge sum of money and in an AD article, it stated that they were filling unfilled orders as a courtesy to the consumers and were not getting paid by the Myers. No pity on the Myers!

joyceinyc wrote:

…There is a lot more to this story. When I purchased my furniture they already knew they could not fill the order but that didn’t stop them from taking my cash. There’s no honor in that. I do business too and that’s not how I do business. It’s not like I’m cold hearted but I lost my money, which is not so easy to come by right now. I lost my money

whouwant2b wrote:

What’s funny is hearing this man claim he was trying to provide for his employees. This man could care less about any of his employees that fall outside of his immediate upper management circle. A circle which is comprised of his friends and former co-workers…I’m ecstatic that his empire built on sand is crumbling in the surf. Who I feel sorry for are the former employees, patrons, and owners of these buildings who have suffered from Myers lack of judgment and stupidity.

exemployee1 wrote:

Definately this man knew exactly what he was doing was wrong and now Robert Mike and Richelle are all covering thier a–es with it was the recession and AFI fault. Assume responsibilty cause jail looks good to all your employees for your future. When it goes to court and it will the employees will be the first to testify!!

ARE YOU FAMILIAR WITH FRANCHISE OWNER ROBERT MYERS OR ASHLEY FURNITURE?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

To contact the author or site admin, email unhappyfranchisee@gmail.com.

EDIBLE ARRANGEMENTS: Franchisee Lawsuit Alleges Unfair Practices

Unhappy Franchisee – Edible Arrangement franchise owners are suing their franchisor, alleging that its unfair practices are threatening the survival of many of its franchisees.

(Related Reading:  EDIBLE ARRANGEMENTS, Tariq Farid Franchise Complaints)

Here is the press release issued by EA (Edible Arrangements) Independent Franchisee Association:

“Franchisee Association Files Lawsuit Against Edible Arrangements Claiming Unfair Practices

“NEW HAVEN, Conn., Sept 20 /PRNewswire/ — A lawsuit was filed today in the United States District Court for the District of Connecticut by the EA Independent Franchisee Association against New Haven-based franchise company Edible Arrangements and several affiliated companies. 

“The complaint alleges that Edible Arrangements has altered the business arrangement with its franchisees over the last several years, to the detriment of the Association’s members and all other franchisees in the franchise system, in violation of its contractual obligations and general principles of fairness.  In addition, the complaint charges that Edible Arrangements has unfairly implemented several system-wide mandates, has enforced new mandates on a discriminatory basis and has failed to disclose necessary and required business information to its franchisees in violation of franchise disclosure rules and regulations. 

"’The EA Independent Franchisee Association has been forced to take this action after efforts to discuss these serious business issues with the company were summarily rebuffed,’ said Justin M. Klein, a franchise attorney at the Red Bank, N.J. law firm of Marks & Klein, LLP representing the Association. ‘The Association represents a strong contingent of Edible Arrangements franchisees located throughout the United States who simply want a fair chance at making their businesses as successful as possible. The recently implemented and threatened mandates from Edible Arrangements create a huge obstacle toward that goal for the franchisees.’"

"’We want a fair shot at success and an open line of communication with the company about the decisions it makes that affect our business and our lives,’ added Sherri Vertorano, a North Carolina-based franchisee and EA Independent Franchisee Association Member.  ‘Edible Arrangements makes the best product, offers great customer service and a memorable customer experience.  However, the recent mandates enacted or threatened by the company are making it far more difficult for franchisees to run a profitable store. Ultimately, if the franchisee is not happy, the experience for the customer will suffer as well.  We hope that Edible Arrangements understands that and that this lawsuit can lead to better relations between franchisee and franchisor, which, in the long run, benefits the customer.’"   

SOURCE EA Independent Franchisee Association

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