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

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

EDIBLE ARRANGEMENTS, Tariq Farid Franchise Complaints

Edible Arrangements, a gift retailer that delivers fresh fruit arrangements and chocolate dipped fruit to business and residential areas, claims its franchise opportunity is The Freshest Idea in Franchising®.

According to the Edible Arrangements franchise website: “Tariq Farid started Edible Arrangements with one goal in mind and that was to make people’s day, every day. Through Tariq’s vision came unprecedented growth and success. Now with $350 million in sales and over 950 locations around the world, the focus remains on our franchisees and on our customers to continue delivering happiness around the world.

“Edible Arrangements® helps people around the world celebrate the times of their lives by training and supporting talented franchisees who provide beautifully arranged, natural, healthy food that makes occasions special.”

However, a recent rise in complaints about the Edible Arrangements franchise may indicate that the sweet franchise deal may be going sour for franchisees.

Are you familiar with the Edible Arrangements franchise?  If so, please share a comment below.

On ComplaintsBoard, 4/29/10 Unhappy Edible Arrangements Owner wrote:

DO NOT BUY THIS FRANCHISE!!! THEY ARE LIARS AND MANIPULATORS!

We currently have 35 stores closed down due to corporate continuing to take more money from us all. Every franchisee worries that they will lose their stores due to corporate greed. They currently take 7% plus another 4% for tv advertising which they contribute nothing to. They put out coupons and do not refund the money back to the stores that accept them. They have now released new hours mandating we have to be open on Sundays, however they allow Jewish owned stores to be closed on Saturday and Muslim owned stores to be closed Friday. Christian owned stores are told they have to be open on Sunday…NO EXCEPTIONS will be made. This is Religious Discrimination!

Corporate does not care about their franchisees at all. Due to their greed and the franchisees concern for their investments 120 stores have entered into a lawsuit against them. These guys will stop at nothing to get you to invest in their concept and then shut you down so they can buy your store on the cheap and then resale it a 3 times what they paid for it. They will take your delivery areas away from you and give them to another store which is either a corporate owned store or the owner is related to the CEO.

Again, SAVE YOUR MONEY!!! Find a franchise that cares about the owners that make it successful! As an owner you will work 60 plus hours and you will not be able to pull a check unless you get rid of all your staff. Sadly, you will tell corporate your problem and they will just blame it on your fruit expense and not on all the rebates they get for you purchasing your product through their supplier. Cost of goods has yet to go down over the past 5 years and we have added 700 stores. The reason why is due to them wanting to continue the rebate and not passing the savings down to the store owners.

SAVE YOUR MONEY, FIND ANOTHER FRANCHISE, ONLY BUY FROM US AND SAVE YOURSELF THE HEADACHE OF OWING ONE.

On Franchisee Law Blog, July 27, 2010, Edible Arrangements franchise owner Tom Downes wrote:

I am a franchisee of Edible Arrangements…  At first the CEO told us that we were critical pieces of the entire franchise system. He was right at the time, we were store #59 and the franchisor gave us much latitude as we built our business to break even and small profit after 2 long years and more infusion of capital. Now, 5 years later all that has changed and the CEO/founder does not care if franchisees make money, he has followed the familiar template offered by IFA* and Michael Seidman** [sic]. Get to a critical mass of stores and start implementing dictatorial measures to extract as much money from their franchisees as possible by mandating capital expenditures for “upgrades” and increasing material costs through vendors.

By the way, the franchisor has established distribution companies that you are mandated to buy all these materials from, adding more money to his cash flows. The franchisor is taught to create as much cash flow into the parent company so that when he sells his company, he will maximize the price. Also, the franchise agreement stipulates that any dispute is dealt with by arbitration only in Connecticut.

On a domain name discussion blog on July 29th, 2010 Edible Franchisee wrote:

Tariq Farid (CEO Edible Arrangements) tries to use the American Legal system to his advantage at every turn. He is a dishonest, unethical criminal who tries to hind behind his so called religious faith. He tries to build a mosque in the middle of a residential neighborhood in CT and when the neighbors cry foul, he claims that his religious freedoms are being trampled by a ‘Sad Agenda” against islam. He continually rapes his franchisees with new fees, mandatory purchases from vendors he owns and unreasonable and unsustainable business models. As EA staores are closing all across the country, he claims the system has never been stronger. He is a snake oil saleman, its as simple as that.

Are you familiar with the Edible Arrangements franchise?  If so, please share a comment below.

* International Franchise Association, a trade and lobbying group representing the political and economic interests of, primarily, franchisors.

** Michael Seid, a pro-franchisor consultant heavily involved with the IFA

PLAY N TRADE Franchise: 30 Stores to Open in 2010

Embattled and controversial franchise video game chain Play N Trade continues to sell franchises and boast about its new store openings.

The Play N Trade franchise has been widely criticized on the Internet for its franchisee recruitment practices and the viability of its retail concept.  Franchise owners have reported widespread store closure.  After its investigation, the California Department of Corporations suspended Play N Trade’s franchise marketing and sales activities in its state.

Play N Trade has maintained a steady flow of positive press releases boasting store profitability and the benefits of its franchise opportunity.  Here’s the latest release: 

“Play N Trade On Pace to Open 30 New Stores in 2010

“Play N Trade Franchise, Inc, uses exceptional customer service and a unique retail experience to ensure success. Plans to open 30 additional stores in 2010.

“Play N Trade Video Game Franchise

“FOR IMMEDIATE RELEASE

“PRLog (Press Release) – Jul 12, 2010 – San Clemente, CA – - 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.
Canadian franchisee, Justin White, opened his second store in British Columbia in July with plans for a third to be up and running by 2011.  White projects to have six to eight stores open within the next 3 years.

“’The best thing about Play N Trade is being able to run a store myself,’ says White.  ‘Customers can see that we are not just another huge corporate entity like our competitors.’

“Play N Trade has set itself apart from competing retail video game stores by offering a unique experience for customers upon every visit.  A “Try-Before-You-Buy” policy literally allows gamers to play any game in-store prior to purchase and the new store design, complete with a “Player’s Club” consisting of numerous consoles and flat-screen TVs, is a perfect place to host in-store tournaments and events.  
Play N Trade foresees the success to continue with a tremendous slate of titles set to release on the year like Halo: Reach, Madden NFL 11 and the motion-sensing peripherals of Microsoft’s Kinect and Sony’s PlayStation Move.

“About Play N Trade
“Play N Trade is the largest video game franchise worldwide. It is also one of the fastest-growing franchises across all industries. The company provides exceptional training, support and marketing systems to its store owners, who in turn provide an outstanding customer experience for their shoppers that is unmatched by any other gaming franchise. Play N Trade sets itself apart from competing video game retailers by allowing customers to try any video game prior to purchase, participate in local and national tournaments, have their consoles and games repaired as well as buy, sell and trade video games. Please visit www.playntrade.com or call 1.888.PNT.GAME for more information.

— end —

ARE YOU FAMILIAR WITH THE PLAY N TRADE FRANCHISE OPPORTUNITY?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

PRO GOLF OF AMERICA Franchise Ends in Chapter 11 Asset Auction

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

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

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

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

Record franchise growth at Pro Golf

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

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

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

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

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

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

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

One of several franchisee lawsuits charging Wireless Toyz, and executives Richard Simtob, Joe Barbat, and Jack Barbat with fraud has ended with mixed results.

According to Crain’s Detroit:  “An Oakland County jury awarded $180,600 damages last week against Wireless Toyz and another $20,000 against Richard Simtob, its finance director and vice president of franchise development, in favor of Colorado franchisee David Abbo of Colorado Toyz Inc.

“Jurors awarded no damages against founder and President Joe Barbat, his company JSB Enterprizes Inc. or against co-founder and Vice President Jack Barbat.”

The single count awarded is for silent fraud. The other allegations of pure fraud, negligent misrepresentation and the franchise law violations were dismissed or resulted in no damage awards from the jury.

The plaintiffs in the case were represented by Birmingham-based Norman Yatooma & Associates P.C.  They were seeking $7.2 million in damages.

According to ClickOn Detroit:

Attorney Norman Yatooma also represents Abbo and other investors, who claim they were defrauded out of their investments by Barbat and the company.

"They didn’t much care what the franchisees were ultimately going to earn. What they cared about was getting their $100,000, their $150,000, their $200,000 down payment to open up that store or to reserve that territory. After that, what happened to the franchisee was their problem," Yatooma said.

He said the investors were lied to when they were told they would make huge profits with their franchises.

"[Joe Barbat’s] made obscene millions off this Wireless Toyz scandal. He’s made millions upon millions upon millions," Yatooma said.

ARE YOU FAMILIAR WITH JOE BARBAT, RICHARD SIMTOB & THE WIRELESS TOYZ FRANCHISE?  WAS THE JURY VERDICT FAIR?  SHARE A COMMENT BELOW.

RENT-A-CENTER to Pay $340K for Customer Harrassment

Rent-A-Center, the parent of rental franchise chain ColorTyme, has reached a settlement with the Washington Attorney General’s Office over claims that it harrassed and directed profanity against customers.

The the Plano, Texas based company (NASDAQ: RCII) has vehemently denied the charges but agreed to pay Washington more than $340,000 in legal fees and costs to monitor the decision, according to Attorney General Rob McKenna.

According to an article in the Puget Sound Business Journal:

“In July, the state alleged that company employees tried to kick in the door of one customer who said he’d be late with his payments because of his wife’s hospitalization. In another case, the state alleged that a woman said Rent-A-Center employees refused to leave her home after she stopped making payments, telling her that she’d be jailed for theft, scaring her daughter, and passing information to her neighbors that she wrote bad checks.

“As part of the settlement, Rent-A-Center agreed not to: speak to customers more than six times a week to discuss an overdue account; engage in violence; trespass; call or visit bankrupt customers unless authorized; impersonate other people; discuss customer accounts with other people; threaten legal action unless permitted under law; visit a customer’s workplace after being told not to visit; use profanity; attempt harassment; or ask someone other than a customer to make a customer’s payment. There were also other restrictions.”

According to the article, Rent-A-Center officials are “delighted to have the case” behind them because, in the words of their spokesman, “It’s less costly to settle than to litigate.”

HAVE YOU HAD ANY DEALINGS WITH RENT-A-CENTER OR ITS FRANCHISE ENTITY COLORTYME?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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

Joe Barbat claims that Wireless Toyz franchise investors have themselves to blame for their failures.

According to a  Local 4 Defenders video report posted on Click On Detroit, the Wireless Toyz founder accused of fraud said that if the franchisees suing him had worked as hard as he had, they’d be rich, too.  Barbat’s allegedly banked $13 Million on the Wireless toyz franchise chain he founded.

Check out the Local 4 Defenders video:  Wireless Toyz Founder Goes On Trial.

Read and discuss the Joe Barbat, Wireless Toyz lawsuits here:  WIRELESS TOYZ: Joe Barbat Boasts Victory in Franchise Lawsuit

  WIRELESS TOYZ: Joe Barbat Fraud Trials

Here’s an earlier video from the Local 4 Defenders that gives an overview of the charges and allegations against Joe Barbat & Wireless Toyz:

Are Wireless Toyz franchisees victims of deception or lazy entrepreneurs looking for someone to blame for their lack of initiative?

That’s what the courts are trying to decide.  Share your opinion… and stay tuned.

ARE YOU FAMILIAR WITH JOE BARBAT & WIRELESS TOYZ?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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