ANYTIME FITNESS Franchise Complaints
April 26, 2012
Anytime Fitness Franchise Complaints: Add yours as a comment below! Love the Anytime Fitness franchise? Tell us why!
Are you familiar with the Anytime Fitness franchise opportunity? Please share a comment below.
Also read: SNAP FITNESS Franchise Complaints
If you are searching for the right franchise opportunity, we hope you brought a shovel.
Even the absolute worst franchise disasters seem to receive high rankings in Entrepreneur and accolades in the mainstream business media.
Do some digging to find out the truth – then post it on UnhappyFranchisee.com for others to see.
Is Anytime Fitness A Great Franchise Bet?
In 2011, CNN.com named Anytime Fitness one of its “10 Great Franchise Bets.”
CNN made this pronouncement based almost solely on Anytime Fitness’ relatively low SBA loan default rate of 2.7%.
CNN wrote: “Anytime Fitness, a chain of gyms, offers customers workouts at their convenience. The clubs are open 24 hours a day. Members can exercise even when a club is not staffed, thanks to proprietary access software, security and surveillance technology.
“Co-founders Dave Mortensen, Chuck Runyon and Jeff Klinger — who has since left the company — opened the first club in 2002 in Cambridge, Minn. Less than 10 years later, there are nearly 1,600 clubs nationwide with more than 1.1 million members.
“More than half of the club owners have more than one location. Running an Anytime Fitness gym involves relatively low overhead, because large numbers of employees are not required. “
“…Of 147 SBA-backed loans between 2005 and 2010, there were just four defaults.
Reports of Anytime Fitness Closings & Franchise Failures
Despite the CNN’s implication that only four Anytime Fitness franchises have failed, a quick Google search reveals a different story.
Anonymous writes Maplewood, MN Anytime Fitness closed yesterday ( 5/25/11 ) and I showed up to exercise since management did not have the courtesy to notify any of the members.
Yelp reports Anytime Fitness – CLOSED 2501 7th St W St Paul, MN 55116
ABC57 reports SOUTH BEND, Ind.– Anytime Fitness is closing its doors at Eddy Street Commons.
Rasmus Auctioneers wrote: Anytime Fitness at Broadlands Center. Rasmus will make a complete liquidation of cardio, excess circuit, plated, strength and excercise equipment, office & business assets by internet only auction
Union County Weekly wrote: Stallings Anytime Fitness on Idlewild Road closed its doors on the last day of the year
Anytime Fitness franchise owners Chad and Jenni Riegel wrote: Dear Anytime Fitness Member, We regret to inform that we are forced to close anytime fitness – New Haven on August 31, 2011.
bcintron wrote: I was a member of the E. Sahara Ave., Las Vegas, NV gym for three months, the gym was only open for about 5 months.
We could go on…
Anytime Fitness Franchise Complaints
Anonymous writes:
All is not what it seems. A great concept except ATF wants all the control by making it mandatory to us ABC Financial. ATF owns ABC and this to me is a conflict of interest to the gym owner. As long as they have their hands on your money the only people that make money is them… this is not a easy business and far more difficult than what they try to make it out to be.Plus on average I would say that between the two of them you will be paying about 10-12% of your gross income to them which doesn’t leave much for you.
Bend Over Chuck writes:
BE PREPARED FOR THE MASS CLOSINGS OF BOTH FRANCHISES IN THE NEAR FUTURE. Besides a weak business model and crappy customer service most 24/7 clubs throughout the country are performing business contrary to the current state, county and city laws and regulations. BUYER BEWARE!
ANYTIMEASSHOLES writes
The owner of the anytime fitness in Ortley Beach New Jersey had the franchise for about 5 years. He was diagnosed with multiple sclerosis, a debilitating incurable disease. The franchise could not turn a profit so he had to close down when the franchise license and the lease on the property expired.
How did ANYTIME respond? By harassing the owner, sending threating letters from their scumbag ambulance chasing attorneys and threatening to sue the owner. They sent a private investigator to New Jersey to look for ways to screw the owner further. For what? Instead of letting him close the franchise and move forward with his life, made complicated by multiple sclerosis, these scumbags from anytime and their lowlife lawyers had to harass him and make his life difficult….
Anyone who wants to do business with these lowlife scumbags deserves all the bad experiences they will bring . They are the lowest of the low and don’t deserve to be a part of the American franchise field. They and their lawyers are the lowest form of life on the planet. They are all greedy un-caring scum.
NO HEART, ANYTIME wrote:
This company’s leader is Chuck Runyon CEO. The company is all about one thing and one thing only, MAKING $$$. The owners and management have signed contracts with their franchisees and they are going to enforce the letter of the law! Franchisees are getting screwed and passing this behavior onto their members. It is a vicious cycle. Corporate is making BANK while franchisees are wiping out. It is tragic for all of the franchisees who bought into this business model based on the information AF corporate sales provided. Does anyone really know how many AF’s are even making money?
ARE YOU AN ANYTIME FITNESS FRANCHISE OWNER OR FORMER FRANCHISEE? ARE YOU FAMILIAR WITH THE ANYTIME FITNESS FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
H&R BLOCK Franchise Complaints
April 26, 2012
H&R Block tax franchise is experiencing turbulent times.
Yet despite undergoing a “broad strategic realignment,” that includes the elimination of hundreds of jobs and the closing of 200 underperforming company-owned offices, H&R Block continues to recruit new franchisees.
Are you familiar with the H&R Block franchise opportunity? What challenges do H&R Block franchisees face? Share an opinion below.
According to H&R Block franchise marketing, “no one knows the tax industry like we do, and no competitor can offer a better franchise opportunity.
“So you can rest assured that our long history with the franchise business model will work to your advantage.
“We’ll supply the tools you need to help you effectively beat the competition and to help you ensure your franchise’s success.
“There are many benefits to becoming an H&R Block franchisee.
Learn about the advantages of working with the No. 1 brand in tax preparation.
Over 55 Years of Experience
Largest Tax Network in the United StatesLow Initial Investment
Available Business Financing
Strong Support to Help Expand Your Business
Unmatched Industry Training and Technology
Superior Products and Services
ALSO READ:
H&R BLOCK To Close 200 Company Locations, Cut 350 Jobs April 26, 2012
TAX FRANCHISES: Biggest Winners & Losers of 2010 January 12, 2011
H&R BLOCK Dumps EXPRESSTAX… & Franchisees? October 3, 2011
About H&R Block
H&R Block, Inc. has prepared more than 575 million tax returns worldwide since 1955, making it the country’s largest tax services provider. In fiscal 2011, H&R Block had annual revenues of nearly $3 billion and prepared more than 24.5 million tax returns worldwide, including Canada and Australia. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 100,000 professional tax preparers, and through H&R Block At Home(TM) digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.
SOURCE: H & R Block
ARE YOU FAMILIAR WITH THE H&R BLOCK AND THE H&R BLOCK FRANCHISE OPPORTUNITY? IS IT STILL A VIABLE H&R BLOCK FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
H&R BLOCK To Close 200 Company Locations, Cut 350 Jobs
April 26, 2012
H&R Block, Inc. has announced a “broad strategic realignment,” that includes the elimination of approximately 350 full-time positions throughout its Kansas City headquarters and nationwide field organization, streamline its seasonal workforce and close approximately 200 underperforming company-owned offices.
As part of the realignment, Amy McAnarney has been appointed President of Retail Client Services and “will be squarely focused on driving service delivery of tax and financial services to the company’s 14.9 million U.S. retail clients throughout its nationwide network of more than 10,000 company-owned and franchise offices.”
Recently, McAnarney served as Senior Vice President of Operations Support and Franchise Development where she was accountable for strategy deployment, client experience development, operations support, and the strategy and development of the company’s franchisee network.
How will this “broad strategic realignment” affect H&R Block franchise owners and employees of H&R Block franchisees? Share an opinion below.
ALSO READ: TAX FRANCHISES: Biggest Winners & Losers of 2010 January 12, 2011
H&R BLOCK Dumps EXPRESSTAX… & Franchisees? October 3, 2011
H&R Block Announces Strategic Realignment of Organization; Preliminary Fiscal 2012 Financial Results
KANSAS CITY, MO, Apr 25, 2012 (MARKETWIRE via COMTEX) — H&R Block, Inc.
- Strategic realignment expected to realize net annualized savings of $85 to $100 million by end of fiscal year 2013
- Company to record fourth quarter pretax charge for lease termination, severance and related costs of approximately $30 million, or $0.06 per share
- Company expects fiscal 2012 total revenues of approximately $2.9 billion and GAAP diluted earnings per share from continuing operations of $1.09 to $1.15
H&R Block, Inc. today announced a broad strategic realignment to create a more cohesive end-to-end client experience, to drive better efficiency and accountability throughout the organization, and to align its resources to balance long-term client and revenue growth. Overall, the company expects to realize net annualized savings of $85 to $100 million by the end of fiscal year 2013 as a result of the strategic realignment.
"Following the completion of my first tax season and a strategic review of our organization, we believe this realignment is an important next step in becoming a nimbler, more profitable, and more client-centric company," said Bill Cobb, H&R Block’s President and Chief Executive Officer. "We have settled on a new organizational structure and identified more efficient ways to operate. We believe these actions will allow us to compete more effectively, more quickly respond to our clients’ needs, and invest in our future as we intensify efforts in our core businesses."
As part of the measure, the company is offering a voluntary separation program to eligible employees throughout the organization. The company will review each application for voluntary separation on an individual basis. In the event the company does not achieve the targeted number of separations from the voluntary program, involuntary separations will follow. Overall, the company plans to eliminate approximately 350 full-time positions throughout its Kansas City headquarters and nationwide field organization. The company also will streamline its seasonal workforce and close approximately 200 underperforming company-owned offices.
"We believe offering a voluntary separation program is an important option to reduce our cost structure," added Cobb. "Changes such as these are always difficult and we appreciate the hard work and dedication of all our associates. However, these steps are necessary so we can create a stronger company, invest in our future, and produce greater value for our clients and shareholders."
U.S. Client Services
The company also announced an organizational realignment, including the formation of U.S. Client Services. The four executives leading this unit will all directly report to Cobb.
"It became clear during our strategic review and benchmarking that the model of having separate retail and digital leadership is no longer viable," said Cobb. "Consistent with many other consumer-facing companies who serve clients effectively through both retail and digital offerings, we have taken steps that will enable us to drive a more cohesive end-to-end client experience, and go to market in a seamless fashion for the 22.2 million clients we serve in the U.S. The four executives who will lead U.S. Client Services all have a proven track record of generating strong results, and their leadership, energy and commitment to our clients will serve us well as we continue our work to position the company for long-term revenue and earnings growth."
-- In-line with its philosophy of serving clients anywhere, anyway, and
anyhow they choose to be served, the company will integrate the
strategy, planning and development of all forms of U.S. tax services
under the leadership of Jason Houseworth, who was named President of
U.S Tax Services. Over the past two years, Houseworth has led the
company's digital tax operations to cumulative client growth of 26
percent and an estimated 150 basis points of cumulative share gains in
the digital online category. Houseworth joined H&R Block in 2008
and is credited with founding the company's Client Innovation Lab.
-- Susan Ehrlich, President of Financial Services, will continue to lead
the company's efforts to grow its H&R Block Emerald Prepaid
MasterCard(R) and all other forms of financial services offered to
its retail and digital tax clients. She also will continue to have
direct oversight of H&R Block Bank. Ehrlich joined H&R Block
in 2011 after a 20 year career in key leadership roles to develop and
deliver payment and credit solutions for JP Morgan Chase, Sears
Financial Services, WaMu Card Services (Providian Financial), and
Citibank. Ehrlich has been recognized the past three years by American
Banker magazine as one of the 25 Most Powerful Women in Finance.
-- Amy McAnarney has been appointed President of Retail Client Services
and will be squarely focused on driving service delivery of tax and
financial services to the company's 14.9 million U.S. retail clients
throughout its nationwide network of more than 10,000 company-owned
and franchise offices. She has held numerous executive positions since
joining H&R Block in 1997, including Vice President of Finance and
Vice President of Tax Strategy. Most recently, McAnarney served as
Senior Vice President of Operations Support and Franchise Development
where she was accountable for strategy deployment, client experience
development, operations support, and the strategy and development of
the company's franchisee network. She also founded The Tax
Institute(TM) at H&R Block, which quickly developed into a
leading source for objective insights into tax law, policy and
research.
-- Robert Turtledove, Chief Marketing Officer, will continue to drive the
company's client acquisition, retention and growth across U.S. Client
Services by leading the company's brand, online, field, research and
social marketing strategies. Turtledove joined H&R Block in 2009
after more than 25 years of experience in consumer, brand, retail,
digital and international marketing with some of the world's most
iconic brands such as Pepsi, Pizza Hut, Frito Lay and Unilever.
Phil Mazzini, President of Retail Tax Services, has resigned from the company effective April 30, 2012.
"I am very sorry that Phil has decided to move on, but I understand his desire to take on new challenges. He did a great job leading the growth of our U.S. Retail Tax business over the past two years and we wish him all the best in the future," said Cobb.
Chief Financial Officer
The company also announced it has retained Crist|Kolder Associates to lead the search for a new Chief Financial Officer. The company’s current CFO, Jeff Brown, will remain with the company and continue to serve as CFO during the search for a successor. Once a successor is found, Brown will transition to Chief Accounting and Risk Officer, where he will oversee all aspects of the company’s accounting function and coordinate its enterprise risk management approach.
"I would really like to thank Jeff for stepping into the CFO role 18 months ago during a period of significant change," said Cobb. "Jeff’s profound knowledge and insight into the business has been a valuable resource to H&R Block over the past 10 years. I am very pleased that we are able to continue leveraging his extensive leadership and accounting experience going forward."
Preliminary Fiscal 2012 Financial Results
H&R Block plans to report its fourth quarter and fiscal 2012 results on Tuesday, June 26 after the NYSE market close. The company expects to incur a pretax charge for lease termination, severance and related costs of approximately $30 million, or $0.06 per share, which will be recorded in the fiscal fourth quarter ending April 30. The company expects fiscal 2012 total revenues of approximately $2.9 billion and GAAP diluted earnings from continuing operations of $1.09 to $1.15 per share.
"Over the past year, we have sharpened our strategy, taken steps to resolve outstanding litigation, and shed non-core assets, which detracted focus away from our core businesses and negatively impacted our margins," said Cobb. "These actions, along with today’s realignment resulted in a number of charges in fiscal 2012. We believe we’ve essentially cleared the decks this year to better position us for long-term earnings growth, margin expansion and improved shareholder returns."
About H&R Block
H&R Block, Inc. has prepared more than 575 million tax returns worldwide since 1955, making it the country’s largest tax services provider. In fiscal 2011, H&R Block had annual revenues of nearly $3 billion and prepared more than 24.5 million tax returns worldwide, including Canada and Australia. Tax return preparation services are provided in company-owned and franchise retail tax offices by approximately 100,000 professional tax preparers, and through H&R Block At Home(TM) digital products. H&R Block Bank provides affordable banking products and services. For more information, visit the H&R Block Online Press Center.
SOURCE: H & R Block
ARE YOU FAMILIAR WITH THE H&R BLOCK AND THE H&R BLOCK FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
7-Eleven Franchise Complaints
April 26, 2012
7-Eleven franchise owners are invited to share their complaints, frustrations and advice with prospective franchise owners below.
UnhappyFranchisee.com believes that no franchise system is perfect, and that it benefits everyone when new franchisees sign on with realistic expectations and advance knowledge of the challenges and frustrations they may face.
7-Eleven franchise website promises its franchisees world-class support: “Because we want you to spend your time operating your store and growing your business, we provide you with a level of support that is not just among the best in the convenience store industry—our support goes above and beyond, setting standards for franchises across all industries.”
7-Eleven franchise website boasts that it provides support by sending a business consultant to each store twice per week:
In order for 7-Eleven® to be successful, you have to be successful. That’s why we provide a personal Business Consultant to help you with all the challenges involved with running your own business.
We provide personal support to help you succeed
What are Business Consultants?
A Business Consultant is a 7-Eleven employee assigned to your store and who visits your store twice a week.
Here are just a few of the things your Business Consultant can do for you:
- Assist in the development of budgets and business plans for your store
- Provide advice, coaching and assistance on how to improve the business
- Assist with the analysis of your store’s sales data
- Provide continual training and guidance on our ever-improving system
- Promote efficiency to help maximize your store’s profitability
7-Eleven named the #1 franchise in Entrepreneur magazine’s 2011 Franchise 500. (See the UnhappyFranchisee.com discussion here: Top 100 Franchise Opportunities 2011: Behind The Hype) and has now been named the #3 franchise in Entrepreneur magazine’s 2012 Franchise 500 as well.
Are the accolades well-deserved?
Does 7-Eleven provide the training, support, marketing and systems it promises?
Is 7-Eleven genuinely dedicated to the success of its franchise owners?
Please share a comment, opinion or insight below.
ARE YOU FAMILIAR WITH THE 7-ELEVEN FRANCHISE? WHAT COMPLAINTS DO 7-ELEVEN FRANCHISEES HAVE? PLEASE SHARE A COMMENT BELOW.
To contact the site admin, email UnhappyFranchisee[at]gmail.com.
CURVES: Curves Posts on Unhappy Franchisee
April 25, 2012
Unhappy Franchisee has been following Curves International and the issues facing Curves franchise owners since 2008. Prior to that we published Curves news and hosted discussions on FranchisePick.com (now archived at EveryJoe.com).
We have also followed and written extensively on other franchised fitness concepts, including Contours Express, Butterfly Life, Cuts Fitness for Men, Diversified Health & Fitness, and more. You may contact us at UnhappyFranchisee[at]gmail.com.
[updated March 5, 2011]
Most Commented Curves Posts
CURVES: Robert Lay’s Story March 10, 2009 (1044 Comments)
CURVES: Negotiating the $10,000 Closing Fee October 12, 2009 (149 Comments)
CURVES FOR WOMEN: Business Broker Slams Curves Franchise and Franchisor November 15, 2008 (129 Comments)
CURVES DISCUSSION: Benefits of a Franchisee Lawsuit? August 18, 2008 (78 Comments)
2012 Curves Posts
CURVES AUSTRALIA Franchise Complaints February 22, 2012
Did CURVES PresidentMikeRaymond Get Pruned? February 16, 2012
CURVES: Why Did the Curves Franchisee Association Fail? (Part 1) February 2, 2012
2011 Curves Posts
Gary Heavin on ABC Secret Millionaire: What do CURVES Franchisees Think? March 1, 2011
2010 Curves Posts
Gary Heavin on ABC Secret Millionaire: What do CURVES Franchisees Think? March 1, 2011
Has CURVES Become the “Trailer Park of Gyms”? November 30, 2010
CURVES Franchise Lawsuit Settlements September 30, 2010
CURVES International 2010 Franchise Disclosure Document (FDD) September 29, 2010
CURVES Franchise Owners React to Comments That They’re Being “Pruned” July 10, 2010 (33 Comments)
CURVES: 1000 Franchise Clubs Failed Last Year July 8, 2010
Failure Rates of the 10 Most Popular Franchises April 26, 2010
CURVES: 5 West Virginia Curves Close Abruptly February 22, 2010 (3 Comments)
CURVES: Should Failed Franchises be Resold? March 31, 2010 (33 Comments)
CURVES: Can Indie Clubs Thrive Where Curves Failed? January 19, 2010 (64 Comments)
CURVES Franchisee Regrets Not Sticking It to Others January 7, 2010 (39 Comments)
2009 Curves Posts
CURVES: Complaints of Unauthorized Membership Charges November 18, 2009 (7 Comments)
CURVES: “Another Curves nightmare. Please advise!” November 10, 2009 (7 Comments)
CURVES: Franchise Resale Complaints, Comments October 31, 2009 (1 Comments)
CURVES: Franchise Resale Buyer Alleges Fraud October 31, 2009 (1 Comments)
CURVES: In Oregon, Curves Franchises Die Alone October 18, 2009 (1 Comments)
CURVES FOR WOMEN: Advice on Buying a Franchise Resale February 24, 2009 (15 Comments)
2008 Curves Posts
Curves Franchisee Blames Economy for Closing December 21, 2008 (1 Comments)
CURVES FOR WOMEN: Nearly Half The Palm Beach Clubs Have Closed November 15, 2008 (17 Comments)
CURVES FOR WOMEN: Franchisee a Victim of Fraud? September 14, 2008 (22 Comments)
CURVES FOR WOMEN: Is McCord Brokers Required for Resales? August 13, 2008 (3 Comments)
CURVES FOR WOMEN: An Unhappy Franchisee Tale August 13, 2008 (6 Comments)
CURVES FOR WOMEN: UFOC dated March, 2008 June 23, 2008 (0 Comments)
Another Curves Shuts Down Abruptly June 14, 2008 (1 Comments)
Cape Girardeau Curves Franchise Closes June 10, 2008 (0 Comments)
WHAT DO YOU THINK OF UNHAPPY FRANCHISEE’S COVERAGE? IS IT USEFUL? FEEL FREE TO SHARE A COMMENT BELOW.
FISH WINDOW CLEANING Franchise Disclosure Document (FDD) & Comments
April 25, 2012
The Fish Window Cleaning Franchise Disclosure Document (FDD) is the required informational document prospective franchisees must receive at least 14 days before they are asked to sign any contract or pay any money to Fish Window Cleaning.
Are you familiar with the Fish Window Cleaning franchise opportunity? Please share your opinion below.
Mandated by the Federal Trade Commission (FTC), the FDD discloses extensive information about the franchisor and the franchise organization which is intended to give potential franchisees information to help them make educated decisions about their investments. The information is divided into a cover page, table of contents and 23 categories called “Items.”
As a follow-up to our earlier post FISH WINDOW CLEANING Franchise Complaints, we have included some highlights from the 2012 Fish Window Cleaning Franchise Disclosure Document in this post, and included a link to the full FDD below.
Is the Fish Window Cleaning Franchise Growing? (Item 20)
In assessing the viability of any franchise system, one should analyze Item 20 of the FDD to see how many franchises have opened in the past 3-4 years, how many have been terminated or discontinued operations. This can give you a quick read on the health of the franchise system, and whether there is franchise “churning” (i.e. a pattern of franchisees failing and being replaced with new franchisees).
Item 20 of the Fish Window Cleaning Franchise Disclosure Document provides the following data:
| FISH
Item 20 |
Year | Outlets at start of the year -period | Outlets added | Term-inations | Non-renewals | Ceased Operation – other reasons | Outlets at end of the year |
| Total Outlets | 2008 | 178 | 22 | 4 | 0 | 17 | 178 |
| 2009 | 178 | 19 | 4 | 5 | 8 | 180 | |
| 2010 | 180 | 34 | 1 | 2 | 8 | 203 | |
| 2011 | 203 | 36 | 3 | 1 | 11 | 224 | |
| TOTAL | 178 | 111 | 12 | 8 | 44 | 224 (+46) |
Total Franchises for the period: 288
Franchises exited the system: 64
% franchises exited the system: 22%
In the past four years, Fish Window Cleaning has grown from 178 franchises to 224 franchises, and increase of 46 franchises. However, during the same period, 64 franchises (22%) seem to have exited the system either through terminations, non-renewals or having ceased operation for other reasons.
Fish Window Cleaning Franchise Lawsuits (Item 3)
Despite the complaints and number of franchisees exiting the system, Item 3 of the Fish Window Cleaning Franchise Disclosure Document states:
No litigation is required to be disclosed in this Item.
Fish Window Cleaning Financial Performance Representations (Item 19)
We were glad to see that Fish Window Cleaning is among the minority of franchisors who provide an optional Financial Performance Representation in Item 19 of their FDD. However, it is unfortunate that they only include the financial performance of the Top Performing outlet, the Top 10% and the Top 50% of the franchisees who provided financial information.
Prospective franchisees should ask Fish Window Cleaning: Why not provide the financial performance of all the outlets that you collected? Shouldn’t franchisees be able to make an informed decision based on realistic data, not just the “best case scenario”?
Franchise Marketing Red Flag #1
In researching a franchise, prospective franchisees should look for inconsistencies between what a franchisor alleges in their marketing materials and what they commit to in the FDD and Franchise Agreement. The Fish Window Cleaning franchise website contains this statement from Fish Window Cleaning CEO Mike Merrick:
Everything we do is focused on enabling and effecting the positive growth of the franchise owners. We don’t sell products to our franchise owners to make money. When we negotiate pricing with our vendors, the franchise owners see the savings. Our income is from royalties. That forces us into a position of being interested and motivated to do everything possible to help the franchise owner grow his business.
However, the Fish Window Cleaning FDD contradicts CEO Merrick’s statement that the franchisor does not make money selling products to franchisees:
During our last fiscal year ending December 31,2011, we received consideration in the amount of $15,286.26 from vendors.
…we and FWCD derived revenues of $233, 206 from the sale of products and supplies, or 3.85% of our total revenues of $6,056,211. based on our Consolidated Statement of Income for the year ended December 31. 2011 and attached as part of Exhibit E. We and FWCD derive revenue from the sale of products and supplies by selling some of these items at a price higher than our purchase price. Other items we and FWCD sell to you at our own cost.
We estimate that your purchase of products, supplies, and marketing materials from us or that meet our specifications and standards will represent approximately 80% to 90% or more of the cost to establish the franchise business and 8% to 14% or more of the cost to operate the franchise business on an ongoing basis.
Franchise Marketing Red Flag #2
The Fish Window Cleaning franchise advertisement on the FranchiseGator.com website contains deceptive and blatantly untrue statements that the U.S. Department of Commerce statistics indicate that franchise ownership is nearly risk-free compared to independent business ownership. On Franchise Gator, Fish Window Cleaning claims:
The United States Department of Commerce offers the following statistics regarding business venture successes and failures:
Franchise Operations –
96% success rate after 1 year
92% success rate after 5 years
Independents –
62% still in operation after 1 year
25% still in operation after 5 years
The “statistics” have been widely proven to be bogus and untrue. In fact, the International Franchise Association (IFA) has issued memos specifically directing its members to discontinue dissemination of these specific claims. The use of these statistics is troubling, and prospective franchisees should question Fish Window Cleaning franchise sales representatives about their accuracy and use.
Investigate Before Investing!
READ: FISH WINDOW CLEANING 2012 FRANCHISE DISCLOSURE DOCUMENT (FDD)
In closing, the franchise due diligence process is not simple, but critically important to making the right investment decision. Our comments are just quick observations after a cursory review of Fish Window Cleaning’s FDD and marketing. Always consult (and pay) a franchise attorney or franchise industry professional (not a broker who calls him/herself a “free consultant”) for a due diligence review and consultation. Feel free to contact us for a recommendation.
ARE YOU A FISH WINDOW CLEANING FRANCHISE OWNER OR FRANCHISEE?
ARE YOU FAMILIAR WITH THE FISH WINDOW CLEANING FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
FISH WINDOW CLEANING Franchise Complaints
April 25, 2012
Fish Window Cleaning franchise company contends that “The demand for professional window cleaning companies has never been higher and FISH Window Cleaning fills that niche.”
Are you familiar with the Fish Window Cleaning franchise opportunity? Please share a comment below.
“FISH now has over 200 franchise owners and is actively seeking quality franchisees coast to coast.”
Also read: FISH WINDOW CLEANING Franchise Disclosure Document (FDD) & Comments
According to Fish Window Cleaning’s franchise marketing:
“FISH owners experience a business that gives them a great lifestyle immediately (no work on nights, weekends, or holidays) and the ability to go out every day and grow their business in a market with fragmented competition.
“Most importantly, the owner is not the window cleaner, but the business professional who is dedicated to following the complete franchise system.”
Fish Window Cleaning claims:
FISH is a smart business decision because:
- Residual Income
- Low Overhead
- Fast Break-even
- Niche Market
- Strong Corporate Support
- Low Investment
- Huge Growth Potential
- Owner is not the window cleaner
- Monday – Friday daytime hours
- Minimal number of employees
- High customer retention
- Over 30 years of experience
FISH WINDOW CLEANING Franchise Complaints
On FranchisePundit.com, March, 2012, That Guy wrote:
I am a former Fish employee, and a current Fish competitor.
Fish operates as a franchise with virtually no “support” from the home office.
They charge high fees to their franchisees, and push the philosophy of “undercutting” their competition.
Problem is, even with all the cheap, inexperienced labor in the world, if you are not charging enough for your services, you will not break even… especially with all the fees adding up.
As an employee… Fish pays their employees as contractors, which enables them to pay far less than minimum wage. I was making roughly $6 an hour with them in 2004, using my own car, and paying for my own gas.
Here’s the kicker… The franchises rarely last more than a year or 2. When they finally close down, the Fish corporate complex already has that particular franchise “established”. The address is kept, the phone number is kept, and the next sucker who comes along is told that the business is established in the area, while never asking where the current business comes from and what happened to the last guy.
Fish Window Cleaning is a classic pyramid / MLM scheme.
But, its not my money to spend, so do what you will.
On FranchisePundit.com, FuwaFuwaUsagi wrote
Fish is one of the few “zors” that makes an earnings claim, and frankly it is among the most entertaining I have ever read (in a good way). Did you examine it?
How do you feel about a franchisor that does not actually operate the business they franchise?
Do you think that 13-16k is a lot to pay for invoices, estimate sheets, brochures and a computer system. Come to think of it what type of computer system is needed for a window cleaning service anyways?
The royalty is 6-8%…The success of this business is tied to the idea of hiring temp sales reps to generate accounts using the FISH system (which basically amounts to cold calling, leaving brochures and business cards); given that does the 6-8% seem reasonable?
Note the brand building fee is 1%…then look at geographic dispersement; I suspect you are not going to get much brand building done. Then again this is corp to corp in a commodity market so branding may be a moot point so then it begs the question why the 1% fee. Then again they reserve the right to jack it to 2%.
What do you think of the punitive minimum performance standard?
How do you feel about the weekly “technology fee”…apparently this loosely worded fee can be used for everything for brand building to supporting you for the snazzy window cleaning software that the technology intensive window washing business demands.
How do you feel about letting the “zor” have carte blanche electronic access to your bank account?
How do you feel about having to have an office outside your home for this type of business? Last I knew ServPro, Service Master and others did not require this.
How do you feel about the compulsory nature of whom you buy your supplies from?
Does it bother you that 80-90% of your start up materials are purchased from the “zor”?
What is the USP for this concept?
At any rate, these are just a few questions for you to mull over and get you started.
A commenter on Ripoff Report, Friday, November 11, 2011, wrote:
I am not happy at all at how many fish franchise have failed. I am not happy most weeks and I am usually fed up by midweek.
You need strong $$ accounts (not $12-$20 jobs), the majority of the your accounts need to be above $40 and only great employees on your staff in order to make this venture work. That is a red flag.
You should be able to make this business work with good employees at the middle of the bell curve. Not every window cleaner can be a rock star. You maybe able find one rock star per year if you are lucky.
if you buy a franchise from fish make sure you don’t have a lot of industrial or all older homes with triple track windows in your territory. You need homes across all income ranges if you even want a chance at making it in this franchise. You need someone out selling everyday to get new accounts. Most of all, you need strong business communities in your territory.
… prayer is the only thing keeping me going has a fish franchise while I push myself to the limit everyday. I go home and ask God sometimes, who did I get myself involved with. The profit margin are way under what I was told it would be.
On ripoffreport, Thursday, January 19, 2012, WindowGuy wrote:
As a former operations manager at a Fish location I read the posts about employee compensation and do agree with the people saying it is by far inadequate…
Yes they do $10-$20 dollar jobs which to get those jobs a lot hire a salesman who gets paid nothing unless he sells and even then it isnt worth anything so they quit. So that causes the well underpaid Operations manager to have to do all the sales or spend his time interviewing more sales man….
I would not recommend franchising or working for this company to my worst enemy!!
ARE YOU A FISH WINDOW CLEANING FRANCHISE OWNER OR FRANCHISEE? ARE YOU FAMILIAR WITH THE FISH WINDOW CLEANING FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
EMBRIODME Franchise Complaints
April 24, 2012
EmbroidMe franchise marketing claims “Entrepreneur magazine has named the EmbroidMe Franchise as the leading franchise provider of embroidery, promotional products, printed apparel and personalized gifts services and we have helped hundreds of people just like you find success doing what they love.”
Are you familiar with the EmbroidMe franchise opportunity? Please share a comment below.
EmbroidMe claims:
“We have used our experience to develop a business model that have led hundreds of EmbroidMe franchisees to success and helped us grow to become the world’s largest embroidery franchise.
“As part of our family you get the full support and services of the EmbroidMe team – a group that is committed to providing you with the training, consulting, equipment and resources you need to make your EmbroidMe store successful.
“The franchise fee for EmbroidMe is $44,500 and the total initial investment ranges between $174,000 and $178,000, with financing available.
“As the world’s largest embroidery franchise, every EmbroidMe franchisee enjoys the benefits of being part of a large network which provides negotiated pricing with vendors, marketing materials, financing options, unrivaled training and support, a professionally designed store and a recognized and respected brand name.
EmbroidMe Franchise Marketing Claims
According to EmbroidMe Franchise Marketing:
When you become an EmbroidMe franchisee you enjoy the support provided by a global company combined with the independence of owning you own business. In addition, every EmbroidMe franchisee enjoys the benefits of being part of a large network with perks such as:
- High Volume Buying Power:With over 300 stores worldwide, EmbroidMe has an economy of scale that enables us to negotiate exceptional prices with vendors; thus, giving you a chance for huge savings on all your supplies.
- Internet Advertising Programs: EmbroidMe participates in an aggressive pay-per-click program that not only keeps us on top of our competitors, but also is strategically designed to drive traffic to your store.
- Free Marketing Materials: As part of an EmbroidMe franchise you receive marketing support in the form of professionally designed marketing and direct-mail materials.
- Professional Store Design: Every EmbroidMe franchisee has the advantage of a retail design expert who will help make the most of a store’s layout.
EmbroidMe claims to provide extensive franchise support
EmbroidMe franchise materials claim:
We don’t leave you high and dry when you open the doors of your store. As an EmbroidMe franchisee, you will have access to the ongoing support from a team of trained individuals to assist you in all areas including training, consulting, marketing, equipment, research, and technical support.
As an EmbroidMe franchisee, you gain the full resources of a team committed to helping ake your store a success through continued training, consulting, marketing, research and technical support. Join our family and experience the satisfaction of owning your own business while enjoying the benefits that come from being part of a global brand people know and trust.
ARE YOU AN EMBROIDME FRANCHISE OWNER OR FRANCHISEE? ARE YOU FAMILIAR WITH THE EMBROIDME FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
AARON’S Franchise Complaints
April 24, 2012
Aaron’s franchise marketing claims that Aaron Rents, Inc., is the recognized leader in the sales and lease ownership (aka rent-to-own)industry with over $1 billion dollars in system wide revenues.
Are you familiar with the Aaron’s franchise opportunity? Please share a comment below.
Aarons franchise opportunity literature claims that:
“The [Aaron’s] Franchise will provide products and services primarily to customers in need of furniture, electronics, appliances and jewelry, but who do not choose to, or cannot, purchase them with cash or credit.
“The customer will make monthly lease payments. The customer can return the product at any time without obligation or can make continuous payments for the term, (6 months, 12 months or 24 months), lease after which the customer will own the product.
“The customer may also purchase the product in the first 90 days at the retail price, applying all monies paid to date. The leasing customer’s wants and needs are no different from those of buyers with credit. They consider items such as stereos, televisions, home furnishings and major appliances as necessities, not luxuries.
“For the millions who cannot afford to purchase these products outright, or do not have the credit to finance the purchases, Aaron’s has become a major source for providing these products…
Aaron’s Franchise Marketing Claims
According to Aaron’s franchise marketing:
Once you have made your decision to join the Aaron’s Franchise family, you will be supported by the finest and most knowledgeable group of professionals in the leasing industry.
Not only have we developed the most effective methods of operation, but we stand behind them as well. The advantages of the Aaron’s system include:
in-depth site selection assistance,
personnel selection assistance,
comprehensive training for you and your staff,
computer software systems,
marketing and advertising support,
inventory financing,
volume purchasing,
network communications and
on- going support to ensure your success as an Aaron’s Franchisee.
Unveiled in January, 2002 Aaron’s has developed one of the premier training programs in franchising today. The University is comprised of our team of top notch trainers who will travel to a different city every week to conduct a series of in-depth training sessions for both you and your associates.
ARE YOU AN AARON’S FRANCHISE OWNER OR FRANCHISEE? ARE YOU FAMILIAR WITH THE AARON’S FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
ACE HARDWARE Franchise Complaints
April 24, 2012
ACE HARDWARE claims that owning an Ace Hardware franchise is a great way to make your dream of business ownership a reality.
Are you familiar with the Ace Hardware franchise opportunity? Please share a comment below.
Ace Hardware franchise marketing states:
“For more than 85 years, Ace Hardware has been America’s neighborhood hardware retailer.
“Recognized as leader in the booming $279 billion home improvement industry, Ace Hardware is offering a tremendous opportunity for those wanting to build a profitable and lasting business.
“With the financial backing and support from a globally trusted and locally embraced brand you can start your own business that leads its industry in customer satisfaction.
The Ace Hardware franchise requires a Total Investment of $400,000 – $1,100,000
Ace Hardware franchise marketing claims:
Successful individuals like you choose Ace Hardware for business ownership everyday these 7 reasons:
- Fastest growing franchise in America (Entrepreneur, 2011)
- #1 distributor and brand in convenience hardware (home Channel News, August 2010
- Globally recognized and locally embraced
- Solid foundation and fad proof future
- Independent ownership with dedicated training & support
- No royalty fees and a portion of the profits are distributed back to the retail owners each year
- New store incentives – up to $255,000
ARE YOU AN ACE HARDWARE FRANCHISE OWNER OR FRANCHISEE? ARE YOU FAMILIAR WITH THE ACE HARDWARE FRANCHISE OPPORTUNITY? SHARE A COMMENT BELOW.
