Are FRANNET Franchise Consultants Trustworthy?
Franchise Brokers from groups like Frannet, Business Alliance Inc. (BAI), Franserve, IFPG, The Entrepreneur’s Source (TES), and their ilk will tell you that they are Franchise Consultants. They contend their “clients” are franchise opportunity seekers who get their unbiased, trustworthy, expert guidance for free. But they are no more franchise consultants than a commissioned car salesman is an automotive consultant. Their clients are franchise sellers who pay huge commissions for them to gain your trust and deliver you – and your financial future – to them on a silver-plated platter. The Opinions of Sean Kelly & Unhappy Franchisee. Corrections, Rebuttals & Opposing Points-of-View Welcome.
Frannet franchise brokers claim they are “free” franchise advisors and consultants.
Many have convinced themselves – and each other – that they are.
But they’re not.
They claim that you – Mr. & Mrs. Opportunity Seeker – are their “clients” and their goal is to match you with the best possible franchise opportunity.
But that’s also a lie.
The smartest and most ethical salesman at the Toyota dealership is not going to steer you to a Jeep, even if it’s the best “match” for your needs.
Even car salesmen don’t have the chutzpah to call themselves “Free Automotive Consultants.”
Similarly, a Frannet broker’s goal is to match you with one of the franchisors who’ve agreed to pay them a substantial commission, in the range of $30,000 – to $60,000 or more, for putting you and your financial future in their salespeople’s capable hands.
And when a company like Frannet tells you they are you “turnkey partner, ready to guide you on a personal journey…”, consider grabbing your checkbook and running like hell.
The term “Partner” generally refers to those who share the investment and the risk; Frannet (and other) brokers get their fat commission check when you sign over your future and are usually far down the road if and when your entrepreneurial dream becomes a nightmare.
I have never heard of a franchise broker turning over their commission to help a struggling franchisee “client” survive their misguided or deceptive advice.
Instant Imprints believes ““in strong franchisor/franchisee relationships with open communication, mutual trust, clearly defined rights/obligations and a dedication to long-term success.”
– Frannet website
Frannet Claims to Have “Verified” Franchise Brands like Instant Imprints to “Ensure Legitimacy” and “Required Documentation.”
The Word TRUST appears several times on the Frannet homepage, once in huge letters.
It’s even in their tagline: “Local. Trusted. Franchise Experts.”
The Frannet website states: “FranNet consultants provide clients with authentic, accurate advice to help you navigate the journey from entrepreneur to business owner.
We’re your turnkey partner, ready to guide you on a personal journey that explores your options, [&] make informed decisions about your future as a business owner.”
Frannet claims that they’ve researched, vetted and verified some of the brands they endorse, including Instant Imprints.
The ad on their page claims Instant Imprints provides “Everything You Want in a Business,” a “proven record of business success and experience,” and a “limitless” customer base.
Did Frannet Verify Instant Imprints “Limitless” Earnings Claims? Misleading Testimonials? High Franchisee Turnover Rate?
We invite Frannet “consultants” – and the other broker groups promoting the (Business Alliance Inc. (BAI), Franserve, IFPG, likely others) – to verify the accuracy of the claims in our video “Deceptive Franchise Marketing 101: Instant Imprints.”
As expert franchise consultants, do they endorse franchisors:
- Who appear to openly violate their representation that they do not share Financial Performance Representations (FPRs) not disclosed in their FDD?
- Who continue to post testimonials & images of franchisees who have failed or otherwise left the system as if they’re happy and successful?
- Who falsely project growth & success but have disturbing high franchisee turnover rates?
We look forward to hearing from Frannet & Frannet brokers on why they endorse & recommend Instant Imprints as a Frannet Verified Brand.
Instant Imprints is a FranNet Verified Brand
FranNet Verified Brands are reviewed by FranNet to ensure legitimacy and industry required documentation.
Please post an anonymous comment below (your email won’t show publicly) or email Sean Kelly in confidence at UnhappyFranchisee[at]Gmail[dot]Com.
We want to know whether these Frannet & other broker organizations still endorse the Instant Imprint franchise opportunity… and whether they have discussed this serious issue with Ralph Askar and Christian Collucci.
Acknowledgement: We gained a wealth of information and insight from the Instant Imprint franchise complaint site FranchiseIssues.Com. We are not affiliated with the Franchise Issues site, its author or its contributors. Our information is gleaned from publicly available sources.
Related Reading:
INSTANT IMPRINTS: Deceptive Franchise Marketing 101
INSTANT IMPRINTS Franchise Defies FTC With Unlawful Earnings Claims
INSTANT IMPRINTS Franchise Warning: 93% Turnover Rate!
The FRUNDEAD of INSTANT IMPRINTS FRANCHISE Marketing
INSTANT IMPRINTS Franchise Complaints
Documentation:
FDDs available upon request
TAGS: Frannet, Frannet franchise consultants, Frannet Franchise Brokers, Jania Bailey, Christian Collucci, Instant Imprints, Instant Imprints franchise, Instant Imprints failure rate, Instant Imprints Stock program, Instant Imprints complaints, FRUNDEAD, No Frills Franchising, IICA Inc., Ralph Askar, Mailboxes Etc., Instant Imprints Canada, Fully Promoted,
Sean Kelly is a recovering franchise marketer, an award-winning investigative journalist, & a devoted IdeaFarmer & chicken wrangler in Lancaster County, PA. His hobbies include collecting cease and desist letters, imprisoning scammers (current count: 2) and tormenting bullies. He’s literally the only one alive who wants to hear your franchise-related woes. Email: UnhappyFranchisee[at]Gmail[dot]Com.
At some point I want to take the time to address your overall post here about brokers. As someone in the industry who works with them, and has for close to 10 years, the entire premise uses, to more nefarious purposes, the exact same things that you accuse brokers and franchisors of; twisting facts and taking snippets of information out of context to promote whatever it is you are selling.
To be clear, I have no opinion on Instant Imprints; I haven’t seen their FDD, and I have no idea what they do or how well or poorly their franchisees perform.
I want to point just one thing out, for now. This is vis-à-vis the comment about Area Representatives (I prefer Area Developers) that you made in your video. An Area Developer can both be a unit operating franchisee and a salesperson. In many franchise systems Area Developers are NOT commissioned sales people, in many they are; I’ll take your word on it that Imprints AD’s are. In their capacity as a franchisee, the testimonial I saw on this video was completely appropriate; the AD (taking your word for that) didn’t say anything about earnings or anything else that would be frowned upon by the FTC. Basically, at least in the clip you provided, he said that, as a franchisee he gets to be his own boss and his success relies on his hard work. . . That is as far from an Item 19 FPR as you can get.
You confuse two laws. The Fair Trade Commission Act requires, as you said, requires that paid testimonial givers (actually, the company that is benefiting from the testimony) disclaim this clearly. That is completely inapplicable to this situation.
If you are going to accuse people of presenting facts in a dishonest way, why would you do the same?
Good franchise organizations that offer strong franchises are able to attract franchise investors without using misleading statements or bending the truth to fit their narrative. You should consider trying on that standard.
Thank you for your comments.
The “premise” is to warn people who wish to own their own businesses that seemingly nice people who care so very much for your success may, in fact, have ulterior motives.
It is to educate people about to make one of the most important financial decisions in their family’s life that franchising is not, as purported, a “regulated” industry. It’s the wild west with no sheriff in town. This video documents blatant violations of the FTC Franchise Rule & numerous anti-fraud statutes, yet no one is checking and no one is enforcing these laws.
Only in franchising would someone such as yourself label that effort as “nefarious” lol!
“In many franchise systems Area Developers are NOT commissioned sales people, in many they are; I’ll take your word on it that Imprints AD’s are. In their capacity as a franchisee, the testimonial I saw on this video was completely appropriate; the AD (taking your word for that) didn’t say anything about earnings or anything else that would be frowned upon by the FTC.”
MP I actually do research before I make claims. I’d love to see where the FTC states that endorsers and testimonial givers don’t have to disclose their relationships if they don’t make earnings claims.
The “Area Franchisees” shown in the Instant Imprints video are named and disclosed as Sales Agents in the company’s California Franchise Registration, as are the broker organizations.
No Frill Franchise Inc. and Instant Imprints says they’re sales agents.
According to the “FEDERAL TRADE COMMISSION 16 CFR Part 255 Guides Concerning the Use of Endorsements and Testimonials in Advertising”
“When there exists a connection between the endorser and the seller of the advertised product that
might materially affect the weight or credibility of the endorsement (i.e., the connection is not
reasonably expected by the audience), such connection must be fully disclosed…
“Advertisers are subject to liability for false or unsubstantiated statements made through
endorsements, or for failing to disclose material connections between themselves and their
endorsers [see § 255.5]. Endorsers also may be liable for statements made in the course of their
endorsements…”
If a franchisee is also a sales agent, an honest and reasonable person would disclose it.
“The Fair Trade Commission Act requires, as you said, requires that paid testimonial givers (actually, the company that is benefiting from the testimony) disclaim this clearly. That is completely inapplicable to this situation.”
Where did I mentioned the Fair Trade Commission Act?
“If you are going to accuse people of presenting facts in a dishonest way, why would you do the same?”
I have not. I put out my opinion and invite people, like you, to disagree. I invite alternative opinions and open discussion so people can make up their own minds.
That’s my nefarious intention ;)
“Good franchise organizations that offer strong franchises are able to attract franchise investors without using misleading statements or bending the truth to fit their narrative.”
I agree! What does that say about Instant Imprints?
“At some point I want to take the time to address your overall post here about brokers.”
I can’t wait.
NEWS FLASH:
@SEANKELLY to be named chair of franchise oversight.
MP: This concerns you.
UF states these are AD’s or AF’s (name is irrelevant). They may or may not be Frans- Does not matter.
The point is the author pointed out those who are in the video are or were in a position to receive commission.
Everything else is padding.
Did the company who benefitted disclose? No they did not.
Update: Today the video and others mentioned in posts were taken down by said company. Why did company which has had videos up for years from terminated or active area franchisees suddenly take them down?
Most likely because they are wrong. Their videos may or may not have crossed the line.
UF has hit a home run on this expose and helped the franchise industry. You should be naming an award after him or asking him to be the chair of oversight for franchising.
I’m going to keep this comment simple.
The increased commissions are changing the broker industry. And not for the better.
Vetting?
Right.
The Franchise King®
Joel Libava
Thanks for the information
These “Consultants” 99% 0f them are the worst of the worst and i was not able to find good 1%. The myth about their services are free is complete lie and utter nonsense. At least, in 2 occasions in the past when i was searching for franchise the documents they provided showed lower Franchise Fee by 20k and 30 K respectively. I confronted one of them and he said oh that FDD is an old FDD. Yeah Right.
There are good franchise systems out their but you have to do your own research and can’t rely on these crooks. They are just wolf’s trying to hide in sheep clothing.