Top

DISCOVERY POINT Franchise Complaints

May 30, 2013

Discovery Point franchise complaints include a high number of failures that the company effectively hides.

Other complaints include the use of a fixed franchise royalty (rather than a royalty calculated as a percentage of sales) and allegations of franchise churning.

Franchise Churning is an industry term that describes a practice wherein a franchisor allows or causes a franchisee to fail so that they can re-sell the territory over and over to new franchisees, collecting new fees each time.

UnhappyFranchisee.Com has not verified the accuracy or veracity of these allegations.  We invite those familiar with Discovery Point to share their views in the comment section below.

We also invite Discovery Point Franchising, Inc. and its associates to provide rebuttals, clarifications, refutations or explanations to UnhappyFranchisee.Com for publication, as it is our preference to provide both sides and let our readers decide.

In response to our post DEADLY FRANCHISE MYTHS: The Hot New Franchise Myth by Sean Kelly, DiscoveryPointFraud wrote:

These deadly combinations were effectively used by the childcare franchise “Discovery Point”.

Look up other resources before buying into this.

Franchisees have been ruined and those were not disclosed. Not sure why employees continue to work in the corporate.

They have seen how one after the other families have been destroyed by this child less couple mercilessly.

Discovery Point uses a fixed royalty and not a percentage. Therefore, has no interest in improving your business.

Actually they benefit if you fail.

They have effectively churned the same location to make more Millions for themselves at the cost of the franchisees and the SBA guarantees.

They are well known to take over running franchised businesses for free, be careful.

Earlier this year, allegations of multiple Discovery Point failures and bankruptcies were posted on BlueMauMau.org.

On January 29, 2013, Guest wrote:

The latest victims of Discovery Point Franchising are the Vahids of DP #36 and the Duttas of DP #57.

They were preceded by DP #11 and DP #22.  All these Discovery Point franchises were located in North East suburbs of Atlanta, GA.

All of these franchisees were families with children and lost everything they had. They now have the stigma of bankruptcy on their records, but the people responsible to make that bankruptcy are enjoying vacations in their private jet.

These are hard working people, who saved to open their own businesses but fell prey to the perfected fraud of franchising.

Vahids and Duttas are willing to share their story to prospective franchisees, if they desire to contact them. Their contact information are available with the existing franchisees of that area.

On May 28, 2013, Guest wrote:

Two more bankruptcies for Discovery Point

Discovery Point #50 at Dawsonville and #55 at Fayetteville, GA went out of business last week. These were multi-million dollar loans guaranteed by SBA but SBA logs did not show that the loans were franchise related. The franchise corporate injected imaginary money from the profit to make the loans happen. There were perhaps overseas money transfers from these transactions. Each closing of these centers also had a parallel cash transfer among business entities owned by the Franchise owners and it happened in the closing attorneys office at the same time as the closing. Hopefully these discussions come up in search results so that future franchisees can make an informed decision.  Bluemaumau has been blocked in primary search by this franchise.  For example, if you Google “Discovery Point”, these discussions will not show up.

*   *   *   *   *

If you are looking for a franchised childcare and you are a family with children, be careful because you are targeted for destruction. The owners of Discovery Point Franchise are childless but are in child related business (go figure!). They have no clue what it takes to raise a child but understand that the effort makes these families vulnerable and easy to prey upon.   Past records indicate that they were after happy families with children – Craigs, Padins, Vahids, Duttas, Schuchmanns to name a few. All these franchisees were personally bankrupt under the supervision of the Discovery Point corporate.

*   *   *   *   *

An exception: One franchisee was a Police Officer, who bought the Mall of GA location, and promptly rescinded the contract but did not bring these near criminals to court. The police officer should have done that to stop the destruction of so many franchisee families. Franchisees lost home, got divorced, lost retirement savings, could not support kids’ colleges because all was sucked in by the franchise and the bank. Most of these loans were made possible by Jackie Hart, who worked with the franchise to increase the center price by a Million in a few years and simultaneously helped to increased the sale volume. She also allowed false cash injection from the franchise’s profits.

*   *   *   *   *

These center failures are not reported in the Disclosure document and one cannot do a thing if there are lies in the FDD. FTC does not monitor each of these FDDs, GA does not have any regulations, and one cannot sue a franchise for lies in FDD. Rogue people like these use Franchise as a license to commit financial fraud with government protection.

Discovery Point child development center was founded in 1988 by Cliff and Diane Clark, and franchised in 1990.

According to its franchise listing on Entrepreneur.Com, the number of Discovery Point franchises has fallen from a high of 58 in 2010 to 53 in 2012.

The total initial investment is listed as $2.67M – 3.34M, with a $60,000 franchise fee and an ongoing royalty of $3800 per month.

Discovery Point Franchising, Inc. is headquartered in Duluth, GA.

WHAT DO YOU THINK?

ARE YOU A DISCOVERY POINT FRANCHISE OWNER OR FRANCHISEE? 

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

Contact UnhappyFranchisee.com

TAGS: Discovery Point franchise, Discovery Point franchise complaints, Discovery Point complaints, Discovery Point childcare franchise, childcare franchise, Cliff Clark, Diane Clark, SBA franchise loans, franchise failures

Comments

5 Responses to “DISCOVERY POINT Franchise Complaints”

  1. http://www.ripoffreport.com/r/Discovery-Point-Franchising/Duluth-Georgia-30097/Discovery-Point-Franchising-DPF-took-my-money-and-built-my-center-but-in-TN-it-would-only-310444

    Sale records indicate Discovery Point corporate picked this center up (churn) alive for a Million and sold it for more than $2 Million. The first sale by the Discovery Point corporate owners was also for more than $2M. It was SBA guaranteed but the loan officer was not Jackie Hart. This franchisee was doomed from the start- where is the proven business model? By the time he could realize what was happening he was broke and could not afford a lawyer to contest. Someone from DP contacted him by phone and offered some loan relief if he handed over the business. He handed it over and no one gave him any slack on anything. So, he lost it all. Eventually he lost family, lost home, lost job – you want to be like him?

  2. ADMIN says:

    DiscoveryPointFraud:

    Do you know a source for sales records for Discovery Point franchises that were sold, taken back over, then resold for a profit by the franchisor? Also do you (or anyone else reading this) have a current or recent Discovery Point FDD you can send us?

    Thanks,

    UnhappyFranchisee[at]gmail.com

  3. DPfranchisee says:

    Why don’t you ask franchise owner, Cliff Clark of Discovery Point, about the churned centers. We can provide proof after he denies. But if he provides the information, you have it.

    Churning started early in the history of this franchise beginning with the first franchised center owned by the Millers. MaryAnn Edwards is also assisting with legal and financial matters in the corporate and may be helpful. She collects the money and is aware that several business entities are being used to confuse the cash flow traces.

    You may also ask Mr. Clark why the churned center in Covington, GA was financed by him and SBA did not approve the loan. How come he showed that churned center as profitable but the new owner cannot meet the bills the next month after purchase. Is SBA investigating this franchise? Let him refuse this.

    You will be scratching your head because whatever he does is>>>>. His private jet operates from Gwinnett County airport in GA but is registered in SC, where he never lived. There were seven franchised centers in SC but cannot be traced. All web presence have been purged. The corporate building pays a significantly low property tax each year compared to its neighbors even if it has bigger land and bigger floor area. It is owned by Mr. Clark with camouflaged business entities. The building is perhaps marked as unheated but actually rented out to many offices and fully air conditioned. Hired the SBA loan officer, Jackie Hart, possibly to pay back the favor. The business director, Jack Gutkin, was salaried but his income varied widely and then went bankrupt himself with no money in bank even if he made more than $100K the year before? Very interesting and stranger than fiction. There is so much more.

  4. DPfranchisee says:

    The total number of centers and growth is misleading for this franchise. Suppose 5 were built and 3 failed. So the growth is 2 centers. This franchise did not disclose the failures. The state of GA does not monitor franchise documents. You will find many franchises are based in the state of GA for that reason. This franchise claimed that there were never any problems anywhere in their system. They would not mention the 3 failed centers anywhere. For example, there were 7 centers in SC that vanished. It was not mentioned and forgotten. In 2005, corporate owned centers but were not listed as corporate owned in the FDD. Franchise lied about the waiting list too. But no one can do anything because franchises are protected in this capitalist country. They are allowed to rob, mutilate, rape and enslave the franchisees before killing them.

    A prospective franchisee sees that there was a growth by 2 centers, but in reality less than half survived in this example. But there is no way to know it. Interestingly, the franchise name was not used in the SBA loan documents. Both the SBA loan officer and closing attorney helped the franchise to hide their names from these transactions. So, SBA cannot trace the failures back to the franchise.

  5. discoverypointChurned says:

    The sale records of one of the churned centers is available here:
    http://qpublic7.qpublic.net/gsi_display.php?county=ga_newton&KEY=00130-00000-070-D00

    Several things to note:
    1. The company name used in 2006 by the franchise for the SBA loan was Discovery Development and not the Discovery Point franchise. SBA could not link the dots, even if it was the same owners.
    2. Buyer in 2006 MMET was Florida based and owners could not be found. Did the franchise owners absorbed it themselves by a fictitious company?
    3. The repurchase included all equipment and supplies and personal property by Charleston Real Estate, which was owned by Diane, an owner of Discovery Point and people suspect she passed away under mysterious conditions and was buried quickly. Note that one of the CEOs of this franchise was murdered before.
    4. The total package sold in 2006 by Diane was more than $2.5M that Diane got back for $1.678M in 2009- not to mention she collected royalty without doing anything and loan payments during these 3 years. Then she and Cliff resold it for $2.5M+. This time in 2011 SBA did not agree and did not finance. Diane financed the loan herself to hide the ownership as the discussion on churning by Discovery Point was heating up. Cliff and Diane used franchise’s marketing Dollars to sell this unit to profit themselves.

    Current owner is losing money and wonders how Discovery Point showed profit when they sold the center to her. She is now stuck with it till bankruptcy. However, DiscoveryPoint is clever and increasing the time gap between bankruptcies by not collecting Royalty or loan payments from several centers. Expect them to gradually fail in 2-5 years. Discovery Point collects fixed Royalty and therefore not interested in how the center is performing.

SHARE A COMMENT HERE:





Bottom