UFG CEO Ray Titus: STOP Promoting the Failed Experimax Franchise!

Open letter from UnhappyFranchisee publisher Sean Kelly to United Franchise Group (UFG) CEO Ray Titus demanding that UFG stop promoting and selling the failed Experimac Experimax franchise opportunity IMMEDIATELY.


(UnhappyFranchisee.Com)

Open Letter to Ray Titus, CEO United Franchise Group (PDF)

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Raymond Titus, CEO

United Franchise Group

2121 Vista Parkway

West Palm Beach, FL 33411

June 4, 2021

Dear Ray Titus:

In your video professing your Servant Leadership philosophy, you state:

“In 26 years in business, I’ve never lost a night of sleep.”

Unfortunately, a good night’s sleep is a foreign concept to those who trusted UFG’s finely crafted Experimac / Experimax marketing and sales presentations, the undisclosed paid endorsements of seemingly unbiased 3rd parties who sang its praises, and the presentations of your franchise sales staff and legions of brokers working from scripts reminiscent of those that earned you a permanent injunction from the FTC some 20 years ago.

More than 80% of those who put their trust in you and the sales numbers they allege you, Jim Muir, your regional Vice Presidents, Tim Phillips and your SBA loan wrangler Paul Bosley provided to them, the SBA and banks lie awake grappling with their recent bankruptcies, lost retirement savings, emptied college funds, dismal credit scores, unpaid family loans, and lost peace of mind. I have listed some of their names, bankruptcy filings and SBA loan default information with this letter.

Others are also grappling with the legal threats, lawsuits, and rising legal bills that UFG is imposing on them for having ceased operation of a deeply flawed and deceptively marketed franchise concept.

As you know, at least 169 Experimac / Experimax franchise agreements were signed and opened since 2015.

The Experimax website currently lists just 48 open locations.

Data from your Franchise Disclosure Documents and website indicate that of those 169 franchises (which include transfers), an estimated 142 (84%) have failed and lost their investments.

While it is apparent that most of those who open an Experimax store will almost certainly lose their investments – and just as apparent that your promises of $600,000 first-year gross sales and more than $1M each year thereafter bore no resemblance to actual franchise store sales – you continue to register, promote and pitch the Experimax franchise to trusting individuals and families.

Thanks to the inclusion of Experimac / Experimax and two other UFG brands in Senator Cortez Masto’s 87-page report on predatory franchise practices, Congress, the FTC, the franchise industry and the public are now watching for your next move.

If only for your own reputation and the survival of UFG, I urge you:

· Stop Promoting and Selling Experimax Franchises IMMEDIATELY

· Stop the bullying legal attack, lawsuits and pursuit of judgements against the franchisee-victims of your non-viable Experimac franchise concept

· Assure your franchisee/victims that they can openly share their experiences and opinions without fear of legal repercussions, a freedom the FTC intended when enacting The Franchise Rule

· Put your energy and UFG’s considerable resources into helping to ease the financial burdens of all those who were guilty of no more than trusting you, your staff, and your enablers

· Withdraw your concepts from the SBA Franchise Registry and stop draining taxpayer money with UFG’s high-turnover franchise concepts

There is no grey area here – Experimax is clearly not a viable franchise concept and, in my opinion, anyone who now sells an Experimax franchise as a safe investment is engaging in the worst kind of deceptive and illegal business practices.

I Am Urging Your Industry Supporters to Help You Do the Right Thing

I understand that a CEO accustomed to having his way, who has a staff of 200 and 1500 adults contractually required to do what he tells them might resist being publicly questioned, taken to task and told what to do – even if it is in his best interest.

For that reason, I am going to ask your friends and supporters in the franchise industry to help motivate you to do the right thing.

International Franchise Association (IFA)

I urge your friends and supporters at the IFA and at the IFE Franchise Expo to stop promoting, endorsing and advertising the Experimax franchise opportunity. I also urge them to remind you of the IFA Code of Ethics.

Small Business Administration (SBA)

I am asking the SBA to drop Experimax from the SBA Franchise Registry and to disallow it from receiving taxpayer-funded loan guarantees. I would also urge them to look into the documented allegations of fraud possibly involving UFG’s Tim Phillips and Business Finance Depot’s Paul Bosley.

Titus Center Advisory Board

I am urging to 60+ members of this advisory board to demand that you cease selling and promoting Experimax franchises and any other franchise with a turnover rate exceeding 25% for the past ten years.

Franchise Ad Portals:

I am urging every franchise advertising portal to cease advertising the Experimax franchise, unless it is positioned as a money-losing tax-write-off rather than an opportunity.

Franchise Brokers Organizations:

I’m urging each franchise broker group to drop Experimax from their roster, and teach them how to calculate franchise turnover for previous years before recommending a franchise. I am asking each broker to forward an amount equal to their commission to any client who bought an Experimac or Experimax franchise.

Franchise & Business Publications

I am urging each franchise publication and entrepreneurial magazine to issue a warning about the high turnover (failure) rates of Experimax and other UFG brands, including those that have closed or are in the process of quietly disappearing (like SuperGreen Solutions).

Federal Trade Commission (FTC):

I am urging the FTC to look into the many of Franchise Rule violations being reported in the marketing and sale of Experimac Experimax franchise opportunities as well as other UFG brands. I am urging the FTC to investigate whether you and your organization have been complying with the mandates of the 1998 Permanent Injunction. I am also urging the FTC to investigate the deceptive use of undisclosed paid endorsements by 3rd parties like John Hayes who receive financial compensation for endorsements positioned as unbiased expert recommendations.

There are Nearly 1500 UFG Franchisees Worldwide. Yet More than 1600 Franchises’ Agreements Terminated Early… in the U.S. Alone

I would also urge you to stop claiming that United Franchise Group (UFG) has “nearly 1500 franchisees in almost 80 countries” without also acknowledging that a greater number (an estimated 1600+) exited their franchise agreements prematurely through termination, ceased operations or ownership transfers… presumably with the loss of their investments.

Our analysis of publicly available Franchise Disclosure Documents for individual UFG brands going back ten or more year reflect that 1,620 franchises exited the systems prematurely through terminations, ceased operations, reacquisition or transfer to other owners.

TABLE 1: Premature Franchise Exits, Turnover (Failure) Rates & Investments Potentially Lost for UFG Brands 2009-2020.

U.S. Franchises Franchise

EXITs:

Turnover Rate Initial Investments x Exits
Jon Smith Subs 9 37% – $3M – $6M
Fully Promoted 470 71% – $58M – $134.5M
Experimax 142 84% – $21M – $50M
Signarama 655 65% – $156M to $206M
Supergreen Solutions 59 81% – $3M to $4.5M to $4M to $6M
Transworld Business Advisors 155 32% – $12M to $15.5M
Venture X 2 5% – $1M to $7.5M
Billboard Connection 45 38%/ 100% – $1.5M to $3M to $3.5M to 8M
Paramount Tax 6 100% – .5M to $1M
Plan Ahead Events 96 69%/100% – $4.5M to $6.5M / – $6.5M to $9.5M
TOTAL 1,620 – $265M to $444M

Absent accurate information to the contrary, and absent the communication from those who have left the system (some of whom are contractually prevented from sharing their experiences, or who fear reprisal from UFG), we believe it is fair to assume these early exits constitute failures and a loss of the franchise investment.

Ray, in 21 days UFG will be celebrating its “biggest and best” World Expo at the Palm Beach County Convention Center – June 26 – 30, 2021. You will also be celebrating 35 years in business for United Franchise Group.

It’s not too late to change the theme of the convention to Openness, Honesty & Transparency.

Imagine starting the next 35 years by committing to actually following the principles and living up to the honest and ethical image that you portray in your marketing. Imagine actually acting with the dedication and concern you so expertly communicate. A good place to start would be honoring your commitment to those listed in the pages that follow and showing them the concern expressed before their franchise fee was deposited.

The first step in launching that new era of Truth and Integrity would be to:

>

Stop selling Experimax franchises TODAY!

> Drop the legal terrorism against victims whose only mistake was trusting UFG

> Discontinue confidentiality agreements, NDAs and non-disparagement clauses except for TRUE trade secrets. Your franchisees are your customers and prospective franchisees have a right to hear their experiences and opinions

> Stop selling franchises with a turnover rate greater than 25% (see chart)

> Commit your organization and resources to succeeding on the unit level with stable, profitable franchisees rather than a revolving door that transforms the creditworthy into the destitute.

I look forward to your response – as do many others.

All the best,

Sean Kelly, Publisher

UnhappyFranchisee.com

UnhappyFranchisee@Gmail.com

Relentless, Inc. P.O. Box 10232 Lancaster, PA 17605 UnhappyFranchisee@Gmail.Com

 

 

Experimac / Experimax Franchisees That Ceased Operation (Partial List)




Abul Ahmed Carrollton TX

Samia Ahmed Carrollton TX

Bryce Avallone Boulder CO

Oscar Bautista Overland Park KS

James Bennett Arlington TX

Gustav Bone Greenville NC

Daniel Boisse Fayetteville NC

Kimberly Bottemiller Tacoma WA

Chris Burneko Bethesda MD

Rochelle Cavaretta N. Las Vegas NV

Atulanand Choudhary Coppell, TX

Leslie Clendenin Madison TN

Leslie Cole Highland Village TX

Chris Cole Highland Village TX

Matthew Davis Athens GA

Julie Davis Athens GA

Reynart De Beer Sandton South Africa

Aroon Desai Dallas TX

Vashka Desai Dallas TX

David Elliott St. George UT

Stacey Flowers Akron OH

Michelle Foley Garland TX

Colette Gabriel Chicago IL

Pedro Gamboa Houston TX

Roberto Garcia San Diego CA

Gordon Geddins Covington, WA

Georgie George San Jose CA

Sandra Gonzalez Pearland TX

C. Scott Higginbotham Tallahassee FL

Tim Holder Joplin MO

Travis Howe Cumming GA

Rebecca Howe Cumming GA

Stephen Hyde Longview TX

David Ifill, Jr. Indian Land SC

Bruce James Salt Lake City UT

Lori James Salt Lake City UT

Robert Jefferson Suwanee GA

Rene Jefferson Suwanee GA

Walid Kaakoush Chandler AZ

Priyanka Kalra Scottsdale AZ

Percy Kennedy Humble TX

Dean Kilton Pickerington OH

Andrew King Temecula CA

Chris Knight North Charleston SC

Rex Lallmang South Riding VA

Judy Lallmang South Riding VA

Timothy Larkins Longview TX

Janice Lee Santa Ana CA

George Leonis Highlands Ranch CO

Juliano Lima Hialeah Gardens FL

Testi de Lima Hialeah Gardens FL

Lisa Little Edgewood PA

Diontay Little Edgewood PA

Gary Lundquist Orland Park IL

Kevin Lynn Cape Coral, FL

Satheesh Madhathil San Jose CA

Eliza Mallue Dayton OH

Jeffrey Mallue Dayton OH

David Mehalick North Pittsburgh PA

Scott Maulsby Mt. Juliet TN

Fonda McCarty Jacksonville FL

Leroy McCarty Jacksonville FL

David McCollister Gainesville FL

Amit Mehta Glen Ellyn IL

Bernadette Morales Pearland TX

Lee Morgenstein Fair Lawn NJ

Daniel Morgenstein Fair Lawn NJ

Matt Morrissey San Luis Obispo CA

Melissa Morrissey San Luis Obispo CA

Ronald Mosley Manassas VA

Benita Mosley Manassas VA

Syed Mustafa Anahiem CA

Kevin Myers Severna Park MD

Robert Newell Smithtown NY

Tony Ngugi Aurora CO

Julian Nieuwoudt &

William Nieuwoudt Cape Town South Africa

Okechukwu Nwanna West Hempstead NY

Gerald Odum Frisco TX

Mark Parent Livonia MI

Kurt Peterson Pueblo CO

Colleen Peterson Pueblo CO

Phuc “Henry” Pham Middleton MA

Amit Phillaura Addison, TX

Jana Phillaura Addison, TX

Lisa Piatt Huntersville NC

Jeffery Prainito Charlotte NC

Wesley Prince Magnolia TX

Deborah Puglielli Hialeah Gardens FL

Cody Ramsey Duluth MN

Taylor Rash Gilbert AZ Bismarck ND

Alicia Rash Gilbert AZ Bismarck ND

Lynette Ray Scottsdale AZ

Laetitia Rohfritsch Strasbourg France

Craig Ruzicki Guilford CT

Melissa Ruzicki Guilford CT

Francis Rentz Tallahassee

Douglas Robinson St. Charles IL

Ricardo Salinas Arvada CO

Zachary Salinas Arvada CO

David Scarbrough Houston TX

Christophe Sevin Orlando FL

Hemanth Sehgal Dallas TX

Rina Sehgal Dallas TX

Athar Sheikh Arlington TX

Marc Shor Las Vegas NV

Mark Simmons Smyrna GA

Charles Small Fort Myers

Andrea Small Fort Myers

Michael Small Fort Myers

Michael Snell Southport QLD Australia

Eric Sosa Columbia SC

James Spisak Plano TX

Allison Stahl Akron OH

Charles Stuller, Jr. Spring TX

Eddie Sutton Saint Petersburg

Joe Tairi Brookfield WI

Michael Taylor Houston TX

Chris Thomas Chico CA

Jeff Thwing McKinney, TX

Brian Town East Lansing MI

Hollie Town East Lansing MI

Glenn Trommer Cherry Hill, NJ

Brian Troyk Brookfield WI

Adam Tuzza Bohemia, NY

Marie Umberger Suwanee GA

Jeff Van Horne Portland ME

Frank Vinyard Jr. Lafayette LA

Michael Voss San Antonio TX

Katherine Voss San Antonio TX

Karl Vrba Draper UT

James Wang Santa Ana CA

Patrick Wentland Colorado Springs CO

Travis Weaver & Ling Weaver Seattle WA

Matthew White Spring TX

Christine Witte Fenton MO

Gary Wolf Peoria IL

Kevin Wright Chicago IL

Natalie Young Duluth MN

Brando Younger North Las Vegas NV

Pamela Zama Bethesda MD

 

Experimac / Experimax Franchisees With SBA Loan Chargeoffs to Date

Morrissey Enterprises,SAN LUIS OBISPO CA

Salinas Holdings Corp. ARVADA CO

CMR Consulting LLC GUILFORD CT

A Cord Of Three LLC TAMPA FL

WEB MERCHANTS, LLC. CLEARWATER FL

MCCOLLISTER MERCHANDISING INC. GAINESVILLE FL

A Cord Of Three LLC dba Experi TAMPA FL

FIDELITY CAPSTONE, LLC ATLANTA GA

Emumby, Inc. SUWANEE GA

Ramsey LLC dba Experimac Duluth DOUGLASVILLE GA

SRH Group, LLC SMYRNA GA

KC CYGNET LIMITED LIABILITY CO CHICAGO IL

Dixon Ventures Mechanic Inc. LEXINGTON KY

The Holder Group LLC JOPLIN MO

BEIJAFLOR LLC FAIR LAWN NJ

EMES TECHNOLOGIES LLC HENDERSON NV

YOUNGERLIFE LLC NORTH LAS VEGAS NV

OKEYAMERICA INTERNATIONAL Inc. WEST HEMPSTEAD NY

Amicus Technology Inc Amherst NY

Wildmacflowers LLC dba Experim HEATH OH

ABBOTTAZ ENTERPRISES LLC BEND OR

Knightvision Productions, LLC NORTH CHARLESTON SC

DIFILL Repairs, Inc. INDIAN LAND SC

CHELLE Corporation MADISON TN

DFS FRANCHISE INC HOUSTON TX

PHILLTRONIX LLC ADDISON TX

Pinkie Toes Investments, LLC Highland Village TX

OWO Designs LLC GARLAND TX

ComPhablet LLC CARROLLTON TX

MarMor Investments LLC PEARLAND TX

WezPrin, LLC MAGNOLIA TX

Thwing Technology Group, Inc. MCKINNEY TX

QUALITY ELECTRONICS AND REPAIR WEST JORDAN UT

The Tech Store PWCN, LLC MANASSAS VA

KAB Enterprises, Inc. dba Expe FEDERAL WAY WA

G-TECH DIGITAL SERVICES, INC. FEDERAL WAY WA

T & L Enterprise SEATTLE WA

KAB Enterprises, Inc. FEDERAL WAY WA

Experimac / Experimac Franchisee Bankruptcy Filings (Partial)

Luminate Images, LLC and Bryce Avallone Boulder CO

Glenn Trommer & Avivah Digital Commerce Cherry Hill NJ

Roseann M. Mattocks Smyrna GA

Brian A. Troyk Wisconsin

Joseph J. Fiorentino and Stephanie J. Fiorentino, Amherst NY

Adam F Tuzza, Experimac Bohemia, Bohemia NY

Timothy Lee Holder, Experimac Joplin, Joplin, MO

Pedro Jesus Gamboa, Copperfield, TX

Donald Dean Dixon, Jr., Lexington, KY

Travis Chariff Weaver and Ling Yung Weaver, Seattle, WA

Jeffrey Thwing & Kimberly Thwing, McKinney, TX

Experimac Highland Village, Pinkie Toes Investments, LLC

Lundo Enterprises, Inc. IL

GYG Electronics, La Mesa, CA

Experimac NW Fields Enterprises, LLC South Carolina

Experimac NW Fields Enterprises, LLC South Carolina

Experimac of Addison Philltronix, LLC

ALSO READ:

FRANCHISE DISCUSSIONS by Company

EXPERIMAX EXPERIMAC Franchise Expose: Behind the Curtain Web Series

ARE YOU A UFG FRANCHISE OWNER OR FRANCHISEE?  ARE YOU FAMILIAR WITH EXPERIMAX, UNITED FRANCHISE GROUP OR RAY TITUS?  SHARE A COMMENT BELOW.

Contact UnhappyFranchisee.com

Tags: Experimax, Experimax franchise, Experimac, Experimac franchise, UFG, United Franchise Group, UFG Expose, Ray titus expose, franchise expose, Ray Titus, John Hayes, SBA guaranteed loans, franchise loans, franchise funding, Paul Bosley, Business Finance Depot, Tim Phillips, Titus Center, Palm Beach Atlantic University, Catherine Cortez Masto, Cortez Masto Franchise Report, Unhappy Franchisee, Sean Kelly

3 thoughts on “UFG CEO Ray Titus: STOP Promoting the Failed Experimax Franchise!

  • June 8, 2021 at 5:44 pm
    Permalink

    I would love to see a response from Ray Titus..and the rest of the group. He may not lose sleep but all of us on the list above have lost many, many nights of sleep by trusting Ray Titus and UFG.

  • June 11, 2021 at 7:20 am
    Permalink

    Ray tightass as he is known in Australia
    Ufg are lying pieces of #$_@

  • June 11, 2021 at 2:30 pm
    Permalink

    Leave it to the Aussies to come up with the best nicknames hahaha…

    Are thing any better with UFG in Australia… or worse?

    I’m sure Sean Cochrane would agree after moving to the U.S. from Australia, selling them Supergreen Solutions, agreeing to reduced payments, then getting stiffed.

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