BIZZIBIZ Franchise Founder Jim Piccolo Responds to Criticism

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

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

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

Founder Jim Piccolo on the Bizzibiz Franchise Launch

“August 19, 2011

“DearUnhappyFranchisee.com:

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

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

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

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

Founder Jim Piccolo on Bizzibiz’ digital marketing track record

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

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

Founder Jim Piccolo on Bizzibiz’ Association with Don LaPre

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

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

Bizzibiz Founder Jim Piccolo on his Fraud Charges

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

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

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

Jim Piccolo on Bizzibiz Client Youngevity & Dr. Joel Wallach 

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

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

Jim Piccolo Promises Transparency & Openness

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

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

“Thank you for allowing me to share.

“Sincerely,

“Jim Piccolo

“BizziBiz”

ARE YOU FAMILIAR WITH JIM PICCOLO AND THE BIZZIBIZ FRANCHISE OPPORTUNITY?  PLEASE SHARE A COMMENT BELOW.

Email the author at unhappyfranchisee[at]gmail.com

 

BIZZIBIZ Franchise, Youngevity & Dr. Joel Wallach

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

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

What is the Bizzibiz “track record of success”?

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

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

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

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

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

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

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

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

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

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

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

Here’s the press release:

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

Consumer Cloud to Provide Vehicle for Greater Growth

 

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

San Diego, CA (PRWEB) August 01, 2011

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

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

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

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

About Youngevity

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

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

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

BIZZIBIZ: VP Don LaPre 2nd Exec Indicted for Fraud

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Has OXYMAGIC CEO David Iseley Gone Off the Deep End?

David Iseley founded the Oxymagic carpet cleaning franchise in 1999.

In 2005, he hired a kid fresh out of college as his V.P. of Franchise Development.  Less than a year later, according to Iseley, the kid went off and started his own competing carpet cleaning franchise company.  Iseley sued him and they settled out of court.

Despite having agreed on a settlement, David Iseley could not let the incident go.  His anger and resentment toward the young upstart seemed to grow to the point of obsession.

David Iseley created entire blogs about how he had been wronged by the young entrepreneur.

He posted vicious, disparaging comments about his young competitor across the Internet, calling him a cheat, a liar and a thief.

Recently, David Iseley began creating and posting angry YouTube videos of himself ranting and raving about the wrongs he suffered, and the unfairness of the U.S. criminal justice system.

On his YouTube videos, Oxymagic CEO David Iseley plays media interviews of his young competitor while he makes derisive and derogatory comments.

David Iseley holds up snapshots of his daughters [See screenshot] who have supposedly suffered because of his 10-month employee’s misdeeds 5 years ago.

During the past 5 years, the college kid focused on growing his franchise company and supporting his franchisees. His chain has grown to nearly 300 franchises.

In the same timeframe, David Iseley has focused on playing the victim.  Despite a 7-year head-start and almost two decades more experience, David Iseley’s Oxymagic still remains at about 80 franchises… about 1/3 the size of his alleged “copycat franchise” competitor.

Warning:  The Reputation You Smear May Be Your Own.

David Iseley’s attempted smear campaign is doing more damage to his brand than any competitor could ever do.

David Iseley accuses the college kid of using infomercials, while his own website links to a paid-for “Designing Spaces” segment that is not labeled as an advertisement.

David Iseley claims the college kid stole his secrets, but doesn’t explain how the kid achieved 300% more growth with the same supposed concept.

David Iseley rails against the court system and the FBI for letting him “get screwed” because he’s “not Coca Cola.”

David Iseley obviously spends an inordinate amount of time on the Internet attacking a long-ago employee instead of finding a publisher for his book manuscript (he displays its supposed cover art) or updating his website (its most current training schedule is from 2008).

David Iseley claims the college kid is a phony, but is shown on video absolutely livid one moment then laughing the next (when he thought the camera was off).

David Iseley claims the college kid is deceptive, while it seems obvious that Iseley himself posts comments under multiple pseudonyms and personas.  On the attack blogs, David Iseley even writes in the first person, as himself, then includes a disclaimer stating “This blog is not affiliated with David Iseley, Oxymagic, or Oxymagic Franchise Development Corp.”

Say what?  His own blogs, which contain personal notes to his competitor, are not affiliated with him?

Should Oxymagic Franchisees Hold an Intervention?

In the worst recession in recent history, a franchise company CEO should be obsessed with one thing above all else:  the success of his franchise owners.

At the very least, he should ask his franchisees whether THEY think he should continue using valuable time and resources on his unprofessional, personal online vendetta.

Odds are, if they are candid with him, they’ll say: Stop embarrassing us, David.  Stop embarrassing yourself. Get refocused on helping us win and keep carpet cleaning customers.

Sometimes franchisors have to save franchisees from their own bad habits.

Sometimes the franchisees need to save the franchisor from himself.

For all their sakes.

ARE YOU FAMILIAR WITH THE OXYMAGIC FRANCHISE & DAVID ISELEY?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

[Note:  Neither Oxymagic nor the unnamed competitor sponsored or had input or influence on the content of this blog post.   The opinions expressed are that of the post author alone and are just that – personal opinions.]  Contact the editor at unhappyfranchisee[at]gmail.com

BIZZIBIZ Franchise Founder Jim Piccolo Defrauded 105 Investors, Says AZ

(UnhappyFranchisee.com) BIZZIBIZ franchise founder Jim Piccolo announced that at the end of last year he was divesting himself of his previous businesses, including his controversial multilevel marketing scheme Nouveau Riche University.

Piccolo claimed he wanted to devote all his time and energy to the Bizzibiz digital marketing franchise venture, which he then launched January 2, 2011.

Not all of his previous business dealings could be so neatly left behind.

Allegations that Piccolo’s Nouveau Riche University was a scam are numerous and widespread in blogs and forums across the Internet.

And in February, 2011, just a month after the launch of Bizzibiz, his real estate investment seminar business came back to haunt him in a big way.

BIZZIBIZ Founder James Piccolo Must Pay Nearly $6 Million for Defrauding Investors

In a February 17, 2011 press release, the Arizona Corporations Commission announced that Jim Piccolo and his business partners must pay nearly $6 Million in restitution and fines for defrauding 105 investors with unregistered deed of trust investments.  In part, the press release reads:

In the first case, the Commission ordered James Piccolo of Scottsdale, Craig Cottrell of Tempe

and Michael Roberts of Scottsdale and their affiliated companies to pay $5,577,226 in restitution and a

total of $300,000 in administrative penalties for defrauding 105 investors with unregistered deed of trust

investments.

The Commission found that the men promoted the unregistered deed of trust investments at

real estate education seminars where they convinced students to become investors, promising them

double-digit returns. The Commission found that Piccolo, Cottrell and Roberts misrepresented that a

second deed of trust or lien on vacant lots would be secured for the investors and that the investment had a

corporate guarantee behind it. Additionally, the Commission found that the respondents failed to record

any liens for the benefit of the investors.

The Commission found that Piccolo and Five Star Capital Markets, LLC solicited potential

investors to buy the unregistered deed of trust investment while not being registered to offer or sell

securities in Arizona. The Commission found that, during part of the time he was a registered securities

salesman, Cottrell fraudulently offered and sold the unregistered deed of trust investments without the

authorization of his securities dealer. As a result, the Commission revoked his securities salesman

registration. The Commission found that Roberts and his home development company, Charlevoix

Homes, LLC, received investor funds solicited by Five Star Capital Markets, LLC, Piccolo and Cottrell,

but Roberts and his company were not registered to offer or sell securities in Arizona.

In settling this case, Piccolo, Cottrell and Roberts neither admitted nor denied the Commission’s findings, but agreed to

the entry of the consent orders.

The full impact that Jim Piccolo’s sanctions will have on the fledgling Bizzibiz franchise program are not yet clear.

It appears that references to Jim Piccolo may have been removed from the “Team” page of the Bizzibiz website, but elsewhere Piccolo’s name has been inextricably linked with the Bizzibiz franchise.

In April, Bizzibiz Franchising Inc. filed a lawsuit against its franchise attorney, Director of Franchising & Board Member Kevin B. Murphy for legal malpractice (READ: BIZZIBIZ Suing Mr. Franchise Kevin B Murphy and Franchise Foundations PC ).

The question remains:  Will the new digital marketing franchise survive its founder’s controversial past, or has Bizzibiz lost its sting?

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

 

BIZZIBIZ Suing Mr. Franchise Kevin B Murphy and Franchise Foundations PC

(UnhappyFranchisee.com)  Talk about a bizzy new franchise!  BizziBiz Franchise, Inc., officially launched its franchise opportunity on January 1, 2011.

BizziBiz Franchise, Inc., officially launched its first lawsuit April 29, 2011.

Buzz. Buzz. Buzz.

The Bizzibiz model is new and unproven:  Franchise owners sell digital marketing services to small and medium-sized businesses and BizziBiz fulfills those services for their customers.

To gain credibility for this brand new venture, Bizzibiz touted its relationship with veteran franchise attorney Kevin B. Murphy.

An endorsement from Kevin B. Murphy was prominent in the initial press release of the Bizzibiz franchise launch:

Franchise Industry Expert and Franchise Attorney from San Francisco, Kevin B. Murphy, known in the industry as Mr. Franchise, has reviewed over 500 franchise companies and has personally owned and operated a very successful franchise.

He says “a BizziBiz franchise offers the hottest franchise opportunity I’ve seen in my 30 years in the industry.”

The Bizzibiz Franchise Disclosure Document (FDD) filed with California in December, 2010 lists Kevin B. Murphy as “Director of Franchising and Board Member”

According to the press release, “BizziBiz is on track to empower entrepreneurs and small businesses everywhere. Currently BizziBiz is registered to sell franchises in eight of the 14 states requiring franchise registration, with applications pending in the rest. It anticipates becoming registered in the balance of those states within 30 days. Concurrent with its domestic U.S. expansion efforts, BizziBiz is also looking to expand in international markets.”

What happened? How did Mr. Franchise go from Cheerleader to Defendant in 4 Months?

Buzz. Buzz. Buzz.  Bizzibiz doesn’t waste time.  Despite the “experimental,” unproven nature of its concept, it was ready for international expansion from Day One.

Buzz. Buzz. Buzz.  It somehow (supposedly) got a franchise attorney to publicly state that it’s “hottest franchise opportunity” he’s ever seen (have you ever heard an attorney make such a statement?).

And Buzz Buzz Buzz in just four months Bizzibiz is suing said attorney for Legal Malpractice?

How long do you think it will take before BizziBiz buzzes away completely?

Are you familiar with BizziBiz Franchise Incorporated v. Murphy et al?  Please share a comment below.

BizziBiz Franchise Incorporated v. Murphy et al

Plaintiff:  BizziBiz Franchise Incorporated

Defendants:  Kevin B Murphy and Franchise Foundations PC

Case Number:  2:2011cv00864

Filed:  April 29, 2011

Court:  Arizona District Court

Office:  Phoenix Division Office

County:  XX US, Outside State

Presiding Judge: G Murray Snow

Nature of Suit:  Torts – Injury – Other Personal Injury

Cause:  28:1332 Diversity – Legal Malpractice

Jurisdiction:  Federal Question

Jury Demanded By:  Plaintiff

Know any of the details or circumstances of this dispute?  Please leave a comment below.

ANY LAB TEST NOW Franchisees Free to Leave, Compete

Lab Test Franchisees Open New Business; Franchisor Concedes Non-Compete Can’t be Enforced, says Franchise Lawyer W. Michael Garner

Two former Miami franchisees of “Any Lab Test Now” have successfully challenged the post-termination covenants not to compete in their franchise agreements, and have left the Any Lab Test system to open Unilab Express, according to Jason Baumann, President of Unilab

Miami, FL (PRWEB) June 29, 2011

Two former franchisees of “Any Lab Test Now” have successfully challenged the post-termination covenants not to compete in their franchise agreements, and have left the Any Lab Test system, according to the franchisees, Jason Baumann and Orlando Fernandez.

Baumann and Fernandez, formerly franchisees of Any Test Franchising of Atlanta, Georgia, a franchisor of walk-in laboratory services, have now opened business under their own flag known as “Unilab Express.” Baumann commented, “We hope to better serve the Miami public with a broader range of services, the availability of a physician, and better compliance with Florida’s strict patient privacy rules.”

Last week, Baumann and Fernandez wrote to the franchisor, announcing that they were leaving the system and pointing out that the franchise agreement’s covenant not to compete, which would otherwise have put them out of business, was not enforceable under Georgia law.

Joe Neely, President of Any Test Franchising, Inc., wrote back to both of the franchisees agreeing with their letters and accepting the terminations.

ALSO READ: ANY LAB TEST NOW Franchise Complaints

“The non-competes are fatally flawed under Georgia law,” said W. Michael Garner, attorney for the franchisees. “The Supreme Court of Georgia has held that provisions containing exactly the same language were unenforceable. The franchisor was smart to do this and avoid a legal fight that would have resulted in a legal precedent.”  Baumann and Fernandez had raised their allegations that the non-compete was invalid in a lawsuit in Miami-Dade Circuit Court, Baumann et al v. Any Test Franchising, Inc.  case no. 11-18661 CA 15.

Baumann and Fernandez, together with several other franchisees, are also suing the founder and owner of Any Test Franchising, David Lageschulte, of Fort Myers, for alleged fraud and misrepresentation made in connection with the sale to them of their Any Lab Test franchises. “We are pleased to have been able to sever our relationship with this franchisor.”  Fernandez said.  The case, Baumann et al. v. Lageschulte, No. 11-19072 CA 05, is pending in the Circuit Court of Miami-Dade County.

Walk-in laboratory facilities are becoming highly popular because of their convenience and low cost. A drug test, for example, can be obtained at Unilab Express for $39.
WHAT DO YOU THINK? SHARE A COMMENT BELOW.

POSIGRIP Dealer Scam Complaints

(Unhappy Franchisee) Are you familiar with the PosiGrip Business Opportunity?  If so, share a comment below.

PosiGrip: A highly profitable business opportunity?

According to the PosiGrip website:  “PosiGrip® offers a highly profitable turnkey, home based business, with virtually no competition. We include national advertising, a complete marketing program and no franchise or royalty fees* (*U.S. Market Only). Also, due to the new federal mandate, as a PosiGrip® Operator, you can offer your customers a federal tax credit just for using your cost effective services, and they will receive a two-year guarantee. It’s easy to say yes to PosiGrip®.”

PosiGrip:  A total scam & Ripoff?

For the past several years, commenters on Ripoff Report have been complaining that PosiGrip is a scam.  Here’s the latest from Thomas:

Posigrip is indeed a total ripoff! Nothing else!

AUTHOR: Thomas – Box Springs (United States of America)

SUBMITTED: Wednesday, June 08, 2011

POSTED: Wednesday, June 08, 2011

I bought a dealership about 1 year ago! First of all it’s not a Franchise!!!! It’s just a dealership you purchase, you don’t even get a Territory!! The product works fine and is easy to apply. The problem is the company itself!

It’s just a “whole in the wall” in Daytona FL, 2 rooms and a small warehouse. The training you get takes 30Minutes! I should have canceled my check and run the moment I saw it…well I didn’t…my mistake!

Now to the facts: it’s extremely difficult to sell the stuff!

There is ABSOLUTELY NO support from Posigrip!

The advertisement they promise never happens! They don’t attend any trade shows as they promise you! I never got any lead from them, there are NO corporate accounts as they promise. In the whole 12 month the only times they did contact me was for money. They offer a free display for expo, which you’ll get…the display is a piece of sh… it cost you more shipping than yopur own one would cost you.

They don’t even send you an email about new products, what’s going on in the market or whatever!

The post cards, introductions, or whatever they offer you….just forget about it – to much work, to much cost – not working at all!!

There are other companies in the market with the same product. If you think that business is for you, talk to them, but stay away from posigrip! It’s a very big ripoff!

Any questions or complaints or ideas or if you think I’m wrong or if you have any helping ideas!!

ARE YOU FAMILIAR WITH THE POSIGRIP OPERATOR OPPORTUNITY?  IS IT A PROFITABLE BUSINESS… OR A SCAM?  SHARE A COMMENT BELOW.

CERTAPRO PAINTERS: Failed Franchise Owner Accepts Blame

Recently we wrote about a failed CertaPro Painters franchise owner who claims that the CertaPro franchisor is to blame for the  losses he suffered.  

He has made it his mission to warn prospective franchise owners about what he calls “the dark side of the CertaPro franchise.”  (Read:  CERTAPRO PAINTERS CertaPro Sucks: The Movie, The Gripe Site)

The franchisee, Tom, states: “I believe they must KNOW they are making money at the expense of others and that most new franchisees are probably destined to fail.”

Commenter “Randy” claims to be an early CertaPro Painters franchisee who also failed.  Randy, however, claims that the CertaPro franchisor provided a realistic picture of the risks and challenges involved with the CertaPro business, and provided valuable training and guidance.  He admits to not following the advice he was given, and accepts blame for his failed business.

Randy writes:

“I am a former CertaPro Painters (CPP) franchisee. I am also a failed franchisee. I took a chance, and invested everything I had in the business. I was one of the first franchisees in California. I worked with CPP to establish methods to successfully qualify a franchise for the necessary Contractors License. I was also there when the laptop software was introduced to estimate and keep track of the jobs and quotes.

“I don’t blame CPP for my failure. There are so many reasons a business can fail, and a franchisor can only control a certain amount. They warned me that the painter pool was one major problem. I tried to hire good people, and I had a few, but there were some that undermined my business. They told me how to track expenses, plan a successful business, and got me great prices on paint and supplies with top quality stores. Was it their fault that I kept buying stuff I didn’t need, and wasting time I shouldn’t have?

“CPP gave me the tools that would allow me to charge a higher price. The brand and support was there, so customers were willing to pay to have a professionally managed business take care of their needs. CPP gave me the structure to run the business day to day. They gave me an office staff that gave the customer confidence, which got me more jobs.

“Gee, was I wrong to believe that it was my fault I failed? You mean I could have blamed CPP for my inability to run my own business? It was CPPs fault I had crackheads on my crew? That I only looked at the money coming in, and not the bills I had to pay? That I should never had taken a job painting a Lawyer’s house or a crazy lady with 10,000 sq ft. new construction, unheated in January where she was the contractor? Gee, my life would be so much better now if I could have just blamed CPP…wait, no it wouldn’t. Whatever happened to taking 100% responsibility for the decisions you make?

“I did learn that I make a much better employee than a business owner.

“I failed, not because CPP didn’t give me my money’s worth, but because I ran the business into the ground. I stopped doing the marketing that I should have done, I didn’t plan well for down time. I had some bad painters on my crews. I took on a few jobs that I shouldn’t have (and had been warned by CPP to avoid).

“Some people shouldn’t be in business for themselves. Some people shouldn’t be in the service business. Some people don’t need a franchise to succeed. It was not CPP’s responsibility to determine if I was the right fit. They did some research to see if I might make it, but nobody can tell until the rubber hits the road.

“As a footnote: There has been a new franchisee in my area since I failed. He is flourishing, and has been for 10 years. It’s not the system, it’s how you use it.”

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

Is FIESTA AUTO INSURANCE & TAX SERVICE a Great Franchise?

The “Tax Only” franchise is dead!

Yes, the Tax Prep franchise was given last rites and declared dead a few days ago right here on Unhappy Franchisee by John Rost, President & CEO of Fiesta Auto Insurance & Tax Service.

Mr. Rost was commenting on a post about JACKSON HEWITT Franchise Complaints when he broke the sad news.

(Technically, he said that the “Tax Only” franchise concept is a “dinosaur,” and since dinosaurs are dead we deduced that he was declaring “Tax Only” franchises dead as well.)

Luckily, there just happens to be a replacement concept for those of you facing extinction.  It’s a franchise two-fer, a veritable service business combo meal called Fiesta Auto Insurance & Tax Service.

Mr. Rost was gracious enough to provide his unbiased insights in the comment section of the Jackson Hewitt post. 

Writes Mr. Rost:

The business environment is constantly changing. Those that believe they have the best system and do not adapt will be swallowed by those that constantly innovate. Consumers get tired of boring brands and poor management along with politicians including the IRS who can damage a system or put it out of business. It is my belief that the “Tax Only” franchise model is a dinosaur. This was a great idea in the past as many franchisees were able to create wealth working only in the tax season. Unfortunately as more tax companies were created along with software available for the independent tax shop the population has more choices. The increased choices ultimately diluted the market and locations originally preparing hundreds or thousands of returns continued to see their market share decrease.

Fiesta Auto Insurance and Tax Service is the only national franchise system that incorporates both a full service insurance agency and tax service. Our franchise owners have a year business opportunity that provides more options for success. Most Fiesta Auto Insurance customers visit the office to make their monthly insurance payments. Having a customer visit monthly improves our customer loyalty and builds customer rapport. This loyalty translates into creating tax customers and places our franchisees in a position of building a business instead of searching for clients every December.

Consider the tax only model where they have a customer visit once or twice to complete the tax process. Then they do not see their client for another year. If the client does appear again they will most likely have the tax return prepared by a new face as most hire seasonal help. How much loyalty will that customer have to the brand based on one or two visits and then twelve months of nothing? Having RAL’s is not the issue. The tax only models cannot brand year round to the consumer and therefore are forgotten. The tax only franchise system is a dinosaur and will continue to see declining results until they ultimately fail or innovate.

If you are interested in a solution to the current tax only opportunity please visit http://www.FiestaFranchise.com and contact our offices for more information.

John Rost
President
Fiesta Insurance Franchise Corporation”

While we do not always welcome blatant self-promotion, Unhappy Franchisee is a great admirer of chutzpah.  It’s a pretty ballsy move to self-promote a franchise in the comment section of a site called Unhappy Franchisee… so we’ll open the floor to comments.

Is the “Tax Only” franchise concept really dead in the water (or tar pit)?

Is the idea of bundling auto insurance and tax services as brilliant as Mr. Rost contends?

Why do “most Fiesta Auto Insurance customers visit the office to make their monthly insurance payments.”? 

Are they actually hosting monthly fiestas?  Are there pinatas involved? 

Because why else would customers pay their insurance in person unless there were pinatas involved?

ARE YOU FAMILIAR WITH FIESTA AUTO INSURANCE & TAX SERVICE?  WHAT DO YOU THINK?  SHARE A COMMENT BELOW.

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