Ciara Stockeland is promoting herself as a successful entrepreneur and her MODE retail fashion concept as a franchise success story. But where’s the success behind this “story”? We invite those promoting the MODE franchise, those heaping on the awards, and those who bought into the MODE franchise whether the hype is justified… or if this is another fake franchise success story.
(UnhappyFranchisee.Com) Google “Ciara Stockeland” and you’ll see the story of an entrepreneurial superwoman.
Behold:
Ciara Stockeland testifying before Congress on behalf of small business owners.
Ciara Stockeland accepting a national SCORE small business award at a gala in Washington D.C.
Ciara Stockeland touted by business publications from Fargo Inc. to Entrepreneur as “The Queen of Overstock” who is “reinventing retail” with her discount fashion franchise, MODE.
Ciara Stockeland being recognized as a Dream Big Award finalist.
Ciara Stockeland being interviewed by the International Franchise Association on women in franchising, or sharing her insights on successful franchising on her own blog.
Ciara Stockeland between the colorful rows of designer clothing, looking as Midwestern/suburban wholesome and contemporary as any model in Good Housekeeping or minivan commercials.
And there’s family photo of Jim and Ciara Stockeland and their angelic children… perhaps the only family photo more perfect than the one that come with the frame.
What did this woman do to deserve all of this fame? you might ask.
And how can I get in on this beautiful success story?
In 2006, Ciara Stockeland apparently opened a high end maternity clothing store in Fargo, ND called Mama Mia.
According to the MODE creation myth, she was offered a truckload of overstock clothing a trucking company was trying to unload, so she took a temporary space next door and sold it as off-price designer clothing.
The discount concept did better than Mama Mia, so she converted her maternity boutique to an off-price fashion concept and brand called MODE.
Ciara opened a second company-owned MODE in Maple Grove, MN… which closed not long thereafter.
Ciara Stockeland sold franchises in Eagan, Roseville, and Woodbury, Minnesota.
They all closed.
She sold a franchise in Grand Forks, ND.
Ciara’s franchise company reacquired it and the franchisee (Denise Sanders left the system).
She sold franchises in Sioux City, IA, Overland Park & Wichita, KS.
They all closed or rebranded.
Ciara Stockeland sold a franchise to Tracy MacKellar for Mt. Pleasant, SC.
Tracy MacKellar claims Stockeland reneged on her promises to customize the inventory for her southern climate.
Mackellar claims MODE was debiting her account thousands of dollars each month without explanation or authorization.
Mackellar claims she discovered Stockeland was buying from a co-op (not from designers as represented), marking up the inventory 100%, then still charging 7% for royalties and marketing.
Mackellar rebranded and the franchisor sued.
Tracey MacKellar has countersued Mama Mia, Inc. dba MODE for fraud, breach of contract, unlawful sales practices, violations of the North Dakota Franchise Investment Law and the South Carolina Business Opportunity Sales Act.
At the risk of sounding like a mean, brutish blogger picking on a perky, award-winning and inspirational female entrepreneur… I have some questions for Ciara Stockeland, MODE corporate employees, MODE mentors, advisors & award presenters as well as current, former and prospective MODE franchisees:
1) Should a new franchise company with more stores closed than open be regarded as a success… or a failure?
2) If a franchisor suffers a 50% closure rate, multiple terminations, reacquisitions and at least one lawsuit within its first ten franchises, would the prudent thing to do be to
3) Ciara seems to attribute store failures to the fact that her franchisees are not her. In a recent interview, she states: “I think because when I sold that first store, and even the second, and third, I just figured everyone was me…. I soon came to realize that not everybody is me…”
Could the store failures have another explanation?
According to the franchisor’s (Mama Mia, Inc.’s) 2017 FDD, 82.5% of the franchisor’s total revenue is derived “from products and services that we acquired from third-party vendors and resold to franchisees, or that we invoiced franchisees for based on third-party vendors we engaged on their behalf.”
So could the problem be that Ciara Stockeland’s business model appears to be to control and mark-up every item, from inventory to business cards, the franchise is required to purchase, then charge a 5% royalty and 1% ad fund fee on on the franchisee’s gross sales?
Could the problem be a little too much Ciara Stockeland, rather than not enough?
| MODE Stores Currently Open – 8 | MODE Terminated Locations or Franchises – 9 |
| Iowa – 2 locations Cedar Rapids, (Company-owned) Sioux City (Tammy & Rick Bertrand)
North Dakota – 4 locations Bismarck (Birst & Carlson Holdings, Inc.) Fargo (Company-owned) ND Williston (Kim Wenko)
South Dakota – 2 locations SD Sioux Falls SD Rapid City | Iowa – 1 location IA Sioux City, IA – (Leeds Project, LLC) Kansas – 2 locations KS Overland Park, KS (Hilltop 6) KS Wichita (Team Durham Enterprises, Inc.) LITIGATION Minnesota – 4 locations MN Eagan (Franchisee Bobbi Bush – Rintoul) MN Maple Grove (Denise Sanders) MN Roseville (RPM Boutique LLC ) MN Woodbury (RPM Boutique LLC )
North Dakota – 1 Location ND Grand Forks (1st owners: Q & O Enterprises, 2nd: Kay Derry) South Carolina – 1 Location SC Mt. Pleasant ( Tracey MacKellar, MODE MP, LLC) LITIGATION |
ALSO READ:
FRANCHISE DISCUSSIONS by Company
ARE YOU FAMILIAR WITH CIARA STOCKELAND & THE MODE FRANCHISE OPPORTUNITY? WHAT DO YOU THINK? SHARE A COMMENT BELOW.
TAGS: Ciara Stockeland, Jim Stockeland, MODE franchise, MODE franchise opportunity, MODE Clothing, MODE discount fashions, MODE franchise complaints, MODE lawsuit, Ciara Stockeland lawsuit, fake franchise news, fake franchise success story, unhappy franchisee
Recent developments have left franchisees worried and uncertain about their futures. To advocate for greater…
The Building Kidz Worldwide franchise is an opportunity to own a preschool & childcare center…
PAINT NAIL BAR has undergone some significant changes since franchisees contacted us with their complaints,…
U.S. Veterans magazine has removed JDog Brands as its #1 "Best Franchises for Veterans" list.…
More than 400 Veterans & military families who invested in JDog Brands franchises have failed,…
Genevieve McDaniel is a former franchisee turned franchise researcher, franchisee advocate, advisor and fiercely honest…
View Comments
Toby,
Ain't nobody got time for you! Bye Felicia
The Sioux City store was purchased back from the Bertrand's and is now a corporate owned store.
The Bertrand's confronted Ciara early after opening their store telling her the system doesn't work and they wanted out. In order to keep the failed store quiet, she bought it from them at a very low and insulting price. They were happy to be done with her and to stop the bleeding.
As a former owner of two stores, I am so happy to finally see some public information about the reality of Ciara's business model.
Based on the fluffy crap posted all over the internet, one would think owning a MODE franchise is a fulfilling experience and a chance to be a part of a growing network of amazing women business owners. That being part of the franchise allows you to own a boutique that has a unique concept which makes it successful. That the franchise fee is paying for the "store support center" as a resource for franchisees who don't necessarily have retail experience. I wish these facts were true.
The women (and men) that have and still own MODE stores are truly amazing but seem to have one thing in common. We were all misled into believing MODE was a viable business model and that the stores that were already operating were profitable. I was specifically told that the merchandise we were purchasing from Ciara was available because of the long-standing relationships she had built with designers. I was never told there would be a markup on the inventory so high that making the rent payment for the store would be impossible while keeping the store stocked.
In the 2+ years that our stores were operating, we never consistently met our sales minimums. The best day we had was our grand opening sales which consisted of mostly friends and family. On multiple occasions, I called Ciara to discuss our situation and ask for help and was assured that if we "stick to the system" we would become profitable.
We were forced to switch POS systems twice and be the test store for the Revel system which was a complete failure and waste of money.
We were the first multi-store owners even though the franchise agreement wasn't written to accommodate multiple stores. We even received a threatening letter from Ciara's attorney after closing one store to stop using the MODE marks when we still owned another store. She immediately shut down our Facebook page rather than merging it with that of our other store because she was so concerned with preserving the brand (can you really say the word "mode" is a unique brand? Try doing an internet search).
Anyway, her personal business model seems to be collect franchise fee, make minimum royalties from failing store, pay employees with overly marked up inventory, sue store owner when they are not profitable and close, settle outside of court for another chunk of change, force store owners to sign non-disclosure agreement, move onto the next victim.
If anything, I hope this stops the next person from buying into her unethical way of doing business.
Can anyone direct me to where the public can access lawsuits filed by and against MODE and/or Jim Stockeland and Ciara Stockeland?
Here is the MODE 2017 Franchise Disclosure Document:
MODE 2017 Franchise Disclosure Document
This is listed in Item 3 Litigation:
"Mama Mia, Inc., v. MODE MP LLC and Tracy MacKellar, No. 3:16-cv-00433
(United States District Court for the District of North Dakota).
On December 29, 2016, we initiated a lawsuit against former franchisee MODE MP LLC (“MODE MP”) and MODE MP’s principal member and guarantor of the franchise agreement, Tracy MacKellar (“MacKellar”), arising out of defendants’ material breaches of the franchise agreement and personal guaranty thereof and continued operation of an infringing competitive business in violation of federal trademark and unfair competition laws and the franchise agreement. We seek preliminary and permanent injunctive relief enjoining defendants from their continuing infringement of the MODE trade names and trademarks and ordering defendants to comply with their posttermination obligations under the franchise agreement. We further seek damages arising out of defendants’ unlawful infringement and unfair competition, treble damages for their willful and intentional misconduct, damages arising out of their breaches of the franchise agreement and
personal guaranty thereof, including lost future Continuing Royalties, and an award of costs and expenses, including reasonable attorneys’ fees. On January 31, 2017, defendants filed
counterclaims against us for (1) breach of contract, (2) actual fraud, (3) violations of the North Dakota Franchise Investment Law, (4) violations of the North Dakota Unlawful Sales or
Advertising Practices Act, and (5) violations of the South Carolina Business Opportunities Act. Defendants’ counterclaims arise out of allegations, among others, that we misrepresented or concealed that we marked up prices on products franchisees are required to purchase from us under the franchise agreement; that we misrepresented that it purchased products directly from
designers and manufacturers; that we failed to allow defendants to sell products suitable for their franchised location. Defendants seek unspecified damages including damages to be proved at
trial, treble damages, costs, disbursements, and reasonable attorneys’ fees, rescission of the franchise agreement and personal guaranty thereof, pre-judgment and post-judgment interest, and
the right to amend their claims to seek exemplary damages. On February 21, 2017, we moved to dismiss the defendants’ counterclaims, which motion is pending.
Other than the above disclosed action, no litigation is required to be disclosed in this Item."
We have obtained the complaint and counter complaint from the PACER legal database. The complaint has what you.d expect, but the answer and counterclaim has some interesting allegations, such as that MODE simply sources inventory from an online broker service and marks it up 100% to the franchisee:
Mama Mia (MODE) v. MacKellar Initial Complaint
MacKellar v. MODE Franchisor Answer and Counterclaim
There may be non-franchise related litigation that may be listed in the court searches of individual counties.
****MODE Franchise Update****
More stores closing…..
Rapid City, SD – rebranding 4/24/17
Grand Forks, ND – rebranding 5/1/17
Sioux Falls, SD – Closing 5/1/17
Bismarck, ND – has been for sale for 1 year, and want to close.
Two stores have Law Suits.
So, this “emerging Franchise” went from 12 Franchised Stores down to 2 Franchised Stores, all her “key” employees left within a 8 month time frame? What’s wrong with this picture??
****Update - Bismarck store closing 4/29/17****
So this leaves only 2 Franchised Stores? Wow from 12 down to 2. How is this an "emerging franchise" I guess that's the question?
So, let me get this straight. Since franchising in 2010, MODE and Ciara Stockeland have gone from 14 Franchised stores to 2 in a years time? Sounds like some criminal mind is scamming hard working women out of college funds, retirement nest eggs, and leaving nothing but a huge bank debt. Sounds like maybe some federal prison time for Fraud would be in order here for Mrs. Stockeland.
Maple Grove, MN (First Franchised Store, Closed!!! was an epic fail, owners are still paying off debt from Ciara Stockeland)
Eagan, MN - Closed 2015
Overland Park, KS - Closed 2016
Sioux City, IA - Closed 2016 (Ciara Stockeland bought this store back for a mere $40k)
Roseville, MN - Closed 2016
Mount Pleasant, SC - Closed 2016 (owner rebranded, and currently in law suit with Ciara Stockeland)
Woodbury, MN - Closed 2017
Wichita, KS - Closed 2017 (owner rebranded, and currently in law suit with Ciara Stockeland)
Bismarck, ND - Closed 2017
Rapid City, SD - Closed 2017 (owner is rebranding and currently in negotiations with Ciara Stockeland)
Sioux Falls, SD - Closed 2017
Grand Forks, ND - Clolsed 2017 (owner is rebranding and currently in negotiations with Ciara Stockeland)
So how is this Franchise considered a "Top Franchise"?? You have 12 stores that have failed Ciara Stockeland's "Proven Business Model", because this is what she sells you! A bag of goods, a failed business model, and tons of debt!!!
Toby, AKA Ciara Stockland's little post above shows a small glimpse of the self-promoting, pretentious, condescending & narcissistic person she is. After dealing with her a few years ago, I had the misfortune of getting an uplose, personal & much larger glimpse of those same unattractive flaws.
A close friend, who is a successful business person, & I were seriously thinking of buying the GF MODE store from the current owners. So we met with Ciara, & She peddled a good story in the beginning; but the STORY quickly started to fall apart.
We signed a preliminary intent to purchase agreement with the current owners, contingent on financing, on a Tuesday evening. By Thursday afternoon, we had completed more paperwork, found 2 potential locations & made an appointment with our banker for that Friday....but apparently that wasn't moving fast enough for Ciara. Thursday afternoon she sent a rude & somewhat threatening email, accusing us of not getting things done in a timely manner, not being serious, & questioning our ability to run a business.
I replied explaining that, as she should understand, there is only so fast things can move, & that we were not going to rush the process just to appease her. She had her assistant reply, & she was very cordial, understanding & apologetic.
From then on, emails went back & forth. Ciara would say one thing one day, & another thing the next. I was constantly having to resend past emails to point out her inconsistencies & changing stories.
My partner & I wanted to ensure we would have some say in running the business, including the location. We wanted to be downtown GF. Ciara was absolutely against that, even going so far as to say "downtown is dying & Kitsona isn't doing very good". It was all I could do not to start laughing when she said that!!! She clearly knew nothing about the GF culture, but in her mind she knew/knows everything, just ask her.
In the end, she determined we weren't business savvy enough to own her franchise, & proceded to take the then current owners to the financial cleaners (she screwed them over horribly), she sold the franchise to someone she could easily control, & had them pay a great deal to open a new store completely away from any other retail. The store faces away from the closest main highway, with no signage to attract passing cars that likely have no idea it's even there. Since 2015 there has been at least 2 more owners (that I'm aware of- there could be even more) so she's sold the GF franchise a minimum of 4 times, but I'm not even sure if it's still open? Ciara clearly made a HAUL on selling her franchises, her training (which is required & costs more than $6K), her equipment, signage, & furniture among other things, and it adds up to tens of thousands of dollars each time!!
So yes she WAS successful BEFORE filing bankruptcy in Jan 2018.....but only for selling franchises, repeatedly & in multiple locations. And at hiring good lawyers who happily sued the poor people who were tricked into buying her lies. I wonder if she'll be able to pay that lawyer now...,to defend her & Jim???
She is a failed entrepreneur! You are so lucky you didn't get tangled in the web of disaster! She was a take the money and run kinda gal! Such a disgrace! Now she claims to be a Business Coach! Really, who are you kidding? She is running a shady business OPX, trying to sell last years stock to poor Boutique owners as a boxed set! I wonder if she hid those assets from the bankruptcy courts? I feel sorry for the poor souls who are going to get caught up in her tangled web of Business Coaching